I am a bit familiar with Autonomy, but I don’t know the exact specifics. They were in the software license business, so if I were to speculate, they would get a new channel partner and then forward them 250 server licenses, book the full revenue during that quarter, and then the partner has to sell all the licenses. But that could possibly take years. Repeat with a handful of fresh partners and you could book a significant amount of revenue growth. Given Autonomy had access to huge amounts of credit, money could have been fronted and exchanged to make these transactions look very legitimate and this could have been lucrative for the partner.
The roundtripping is not very clear. Maybe the same thing thru one of their acquisition companies?
The roundtripping is not very clear. Maybe the same thing thru one of their acquisition companies?