... it's important to look at revenues in the context of cash flow as well as changes in the cash position.

There's a lot of fudging that can happen when it comes to when revenue is reported.

But cash is cash.

And when I looked at PSN's numbers a little while ago when hell started to break loose, what jumped out at me was the big drop in cash in spite of growing revenues.  The big jump in AR was also a red flag.

Making a sale is useless if it's with a customer who won't ever pay you.

And when you sign a contract worth, say, $1 million over 2 years, you don't record that $1 million upfront.

You break that $1 million up over the 24 months and record it each month.

One thing that occurred to me... there is one possible criminal aspect to this... if management was involved in posting fake sales and then later calling it "uncollectible AR".   That would pump up the share price more than is justified. 

I wonder if who in PSN's management were selling shares in the past 12 months before those numbers came out that clearly showed PSN had an AR problem...