Aaron,
The earnings have been "misreported" by Dow jones News Service.
The stated:
Phoenix Technologies Ltd.
4th Quar Sept. 30:
a 1996 1995
Revenues $20,749,000 $13,297,000
Inc cont op b 2,098,000 3,474,000
Inc dis op c 3,752,000 ....
Net income 5,850,000 3,474,000
Avg shrs 18,327,000 a 16,296,000
Shr earns
Inc cont op b .11 a .21
Inc dis op c .21 ....
Net income .32 a .21
a. Restated to reflect acquisition of Virtual Chips Inc. in August 1996.
b. Includes a one-time tax benefit of $1.3 million, or 8 cents a share, and acquisition expenses of $889,000.
c. Gain on discontinued operations from payment on a note and sale of stock received from Xionics Document Technologies Inc. in exchange for the sale of printer software division to Xionics.
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The real report:
Phoenix Technologies Announces Fourth Quarter Results; The Company Reports 56% Revenue Growth for the Quarter and 44% for the Year and Record Net Earnings for the Fiscal Year
SANTA CLARA, Calif.-Oct. 29, 1996--Phoenix Technologies Ltd. (NASDAQ: PTEC), a leading supplier of system level software to manufacturers of PCs and other microprocessor based products, today announced net income for its fourth fiscal quarter of $5,850,000 or $0.32 per share and for the fiscal year of $12,799,000 or $0.73 per share.
The results include expenses of $889,000 related to the acquisition of Virtual Chips, Inc. and a gain on discontinued operations of $3,752,000. Revenue for the quarter and the year increased 56% and 44% to $20,749,000 and $72,136,000, respectively, as compared to $13,297,000 and $49,941,000 for the same periods in the prior year.
Income from continuing operations was $2,098,000 or $0.11 per share for the quarter and $9,047,000 or $0.52 per share for the year. Income from continuing operations was $3,474,000 or $0.21 per share and $8,815,000 or $0.56 per share for the same periods in the prior year, both of which include a one time tax benefit equal to $1,300,000 or $0.08 per share.
Excluding the results of Virtual Chips and the tax credit, pro forma earnings per share from continuing operations increased 29% to $0.18 for the quarter and 26% to $0.63 for the fiscal year.
The Company acquired Virtual Chips, Inc. in August 1996 in exchange for 1,241,842 shares of common stock. The transaction was accounted for as a pooling of interests and all quarters in fiscal 1996 have been restated to reflect the additional shares and results of operations. The fourth quarter includes related acquisition expenses of $889,000. Only the shares were restated in the prior year as the results of operations were immaterial.
The gain on discontinued operations arose from the payment on a note and the sale of stock received from Xionics Document Technologies, Inc. when the Company sold its printer software division to Xionics in 1994. On September 26, 1996, Phoenix received payment on the note and sold 500,000 shares in Xionics' initial public offering.
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Note that the .08 for tax benefit is attributed to the WRONG YEAR by Dow Jones.
They make it seem that earnings where:
.03 vs .21
The correct comparison is
.11 vs .13
Bottom line is it was an excellent report .01 ABOVE expectations!
Good investing,
Marc |
