A financial analyst, James Amphlett, at with Xenon Capital LLC gathered information about NetSuite Inc., a firm whose shares Xenon wanted to purchase for its computer software portfolio. NetSuite provided cloud-based financial and enterprise resource planning software to customers for a recurring subscription fee. NetSuite was one of many companies that supplied cloud-based computing services, and were often referred to as software-as-a-service (SaaS) firms. NetSuite generated sales through both direct and indirect approaches, with most selling actions conducted over the telephone by its sales force.
The portfolio manager of Xenonrequested Amphlett to pay close attention to the accounting methods of the company, especially its revenue and expense recognition processes. Close scrutiny was asked by such stories from the US Securities & Exchange Commission. (SEC)
PUBLICATION DATE: August 01, 2016 PRODUCT #: TB0449-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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