CMVT is on the new sister thread, linked in post #36. I believe that they will soon run into trouble with the IRS because of the operations of their Israel-based subsidiaries, which they are not paying tax on because they are supposedly under some favorable program with the Israeli Govt. This may have been acceptable when CMVT was an emerging company, but they are quite large now and should not receive this favorable treatment. Just check out CMVT's corporate tax rate.
from their 10/99 10-Q:
Income Tax Provision. Provision for income taxes for the
nine and three month periods ended October 31, 1999 increased by $2,655,000
(31%) and $884,000 (29%), respectively, from the corresponding 1998 periods due
to increased pre-tax income. The Company's overall effective tax rate was
approximately 10% and 9%, respectively, in the nine and three month periods
ended October 31, 1998, and 9% and 8%, respectively, in the nine and three month
periods ended October 31, 1999. The Company's overall rate of tax is reduced
significantly by the tax benefits associated with qualified activities of its
subsidiaries in Israel.
The only problem is that the company is incorporated in NY and pays tax to the US Govt, not the Israeli Govt. There is no way they will continue to get away with paying a 9% corporate tax rate as all other companies incorporated stateside pay in the 33% to 41% range. |
