Too much emphasis on revenue.
Not enough emphasis on other financial measures like cash to verify if the revenue makes sense.
A similar thing happened in the Tech boom-bust.
Many companies were being pumped due to their revenues which were growing at a rate of 100%.
But in cases like Nortel, it wasn't real organic growth. They were just buying the revenue by snapping up companies.
Revenues were up, but most other measures like the cash coming in (especially on a per-share basis), things didn't look so good at all.
In the case of Poseidon, it looks like they were just doing business with anyone with no credit checks and booked the revenue wrong (but in a way that worked to management's benefit).
It really ticks me off when I hear sales people and management go on and on about getting the sale or how great revenues are, while conveniently ignoring the bottom line that shows too many customers are deadbeats or some other issue.