Yeap ... agreed with you and rea the followings ...
NOTE: As a direct result of the Financial Accounting
Standards Board's issuance of FASB Interpretation No. 43 "Real
Estate Sales" (FIN 43), which became effective June 30, 1999,
revenues for the three months ended September 30, 1999 were
$10.7 million or 8.5% less than revenues of $11.7 million for
the third quarter of 1998. In accordance with this
interpretation, MFN elected to recognize revenues on certain
sales contracts entered into after July 1, 1999 over the term
of the contract rather than under the percentage of completionmethod.
This change in the accounting for sales contracts does not
change any of the economics of those contracts or the timing of
cash received by MFN. Under the prior accounting method,
revenues would have been approximately $32.7 million for the
three months ending September 30, 1999, or an increase of 179%
compared with the three months ending September 30, 1998.
Revenues also include $2.1 million of revenues of AboveNet
Communications Inc., acquired by MFN on September 8, 1999, for
the period from September 9 through September 30.
The net loss was primarily attributable to the increase in
net interest expense related to the issuance and sale of the
Company's 10% senior notes in November 1998. The loss was
greater as a direct result of the aforementioned accounting
change. Under the prior accounting method, the loss would have
been approximately $15 million ($0.08 per share) less for the
three months ending September 30, 1999. |
