Two quick things. Enphase just got an updated loan. I am analyzing the loan terms and will write more about that after the conference call. The terms of the loan are complicated and I will need to study them.
The other thing is I wanted to make one note about yesterday’s Column. I thought of another possibility for the reduction in Gross Margins for Q1 of 2017. There could be a significant component of Deferred Revenue. What this would mean in practical terms is that the company would make a significant shipment of products for which it could not claim revenue. There are 2 ways that this could happen as I see it. First, Calix is planning to do some installations in late-Q1 that will not be approved until Q2. Alternately, there could be a new contract (Verizon) where early shipments were dependent upon R&D items. In this case, the product would be not considered Revenue under Sarbanes-Oxley. This would be true even if the company received payment for them in either case.
The challenge to the Deferred Revenue possibility is that it would have made sense to make this part of the announcement if it were true. But it is a possibility.
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