FWIW,
I talked to Mary Lou and got the story on the old '92-'94 DC contract. At the start of the contract, there was an agreed upon payment rate, which covered expenses. After the contract got started, conditions changed such that PHP felt that they were entitled to more money, but in order to get it they needed a waiver, which had to go through congress. While waiting for this process, they booked as revenue the amount that they felt they were entitled to. After the waiver was approved,(well after the contract had ended), DC decided that they weren't entitled to it, which is where we stand now.
Therefor, the loss they took TOTALLY balances the books for the old DC contract. Any money they now get is PURE PROFIT. If they get even $5.5M, thats $.50/share! All of their current contracts are in place and profitable, and unaffected by this old business.
I posted this on YAHOO, and thought that you guys might be interested.
Kevin |
