Upperman33

Focus Media: Will Massive Accounts Receivable Lead to a Future Write-Down?

"Based on the fact the company was still in the midst of fully integrating their various acquisitions, I gave the management the benefit of the doubt regarding the AR situation in Q1, however I expected a significant reduction in the AR balance in Q2. Anticipating a reduction in the range of $60 to $70M, which would have put the balance in a more acceptable range, instead the balance ballooned by some $60M to $321M."

Focus is still in the process of integretating the CGEN acquisition, which is party responsible for the high A/R. They said there would be a "significant reduction" of the A/R this quarter. I believe there will be a lot of improvement in this area next quarter because it seems like management is hitting on all cylinders.

We will wait and see.