Does anybody know their cash reserve...
Jill, here is a link to an 8-k filing that shows the balance sheet
and income statement after giving effect to the infrastructure sale
to Ericsson.
edgar-online.com
They are VERY LIQUID. No need for additional cash based on this
balance sheet. So if management doesn't have a short term need for
the cash, I assume they are just taking advantage of the extra demand
created by the S&P 500 inclusion to raise capital, and that they do
have a long term plan that calls for more capital.
If they have no plans calling for capital then we can speculate that
they are converting themselves to a Mutual fund???? :-)
Highlights from the balance sheet:
Cash $219,350,000
Investments 83,395,000
Accounts receivable 812,049,000
Sub-total $1,114,794,000
Total current assets $1,572,751,000
Total curr liabilities $785,639,000
Total Liabilities $832,410,000
Of the liabilities, the majority is accounts payable, deferred
revenues, and accruals, all of which are typically non-interest
bearing, so no reason to pay them off.
I guess we will just have to await management announcements on what
this money will be used for. Based on the above, it is going into
investments in the short term.
Just a side note: You should follow the 8-K link and have a look at
the before and after income statement to see the effect of their
getting out of the infrastructure business. It REALLY helped their
profitability a lot.
Brian |
