George,
You have missed many of the fine points. You make reference to fcm's revenues as legal, yet the finer points are omitted; such as; fcm's accounts receivables, and usat accounting for 92% of fcm's accounts receivable. The fact that usat continually adds disclaimers about obtaining financing for expanding due to the continuing SEC investigation, and its numerous lawsuits. The fact that usat has almost no money left.
So factor out the dubious customer of usat from fcm's revenues and then show me growth in fcm revenues and customer base. This company usat accounted for $8,079,560 of fcm's revenues. Add to that fcm's bosnia network that should be $100,000 per month for the preceding 12 months and how much is left ?
One other noteworthy item is, you have to love fcm's Research and development expenses ..
Selling, general and administrative expenses and their
Write-off of goodwill ..............
For the prior three years the above three items accounted for a total of $ 16,809,000. Now deduct the dubious customer usat, and tell me how fcm's expenses are looking compared to their income ????
Better yet where was fcm's "BACLOG FOR THIS QUARTER". Last quarter fcm announced a backlog of 2.6 million dollars, this quarter "NO ANNOUNCEMENT WAS MADE ABOUT ANY BACKLOG". I wonder why ?
Here is a little history lesson for you, ON JAN 3, 1997 FRANK PETERS MADE THE FOLLOWING STATEMENT AND I QUOTE; "Franklin is bursting at the seams with orders and prosperity! Thanks for stopping by our Web Site. "
Message 751855
If fcm / ftel was "BURSTING AT THOSE SEAMS WITH ORDERS AND PROSPERITY", why then were reported revenues $ 1,735,000 for the year that ended just six months ( June 30, 1997 ) after the chairman made that bold and erroneous claim. You want to give him some time after that statement ? Let us go to the following fiscal year for fcm June 30, 1998 ). That is a full one and one half years later ( 1 1/2 years ). The full years revenues for that fical year were $ 1,377,000. Now kindly tell me how fcm / ftel was "BURSTING AT THOSE SEAMS WITH ORDERS AND PROSPERITY" when the above statement was made ??? Answer that one simple question, and perhaps we can find some common ground for discussion. THAT STATEMENT SIMPLY WAS NOT TRUE PERIOD.
NO COMPANY SHOULD BE ALLOWED TO MAKE SUCH A STATEMENT AND REPORT THE TYPE OF EARNINGS THAT FCM / FTEL DID SUBSEQUENT TO THAT CLAIM. |
