As an example of how facts are twisted, here is what "The Truthseeker" chose to highlight out of the recent financial report from Conolog:
They announced earnings of 328k, but 2/3 of that was from taking credit for their prior losses under NJ state tax laws, actual earnings from the business would be 119k, or .02 per share, not the .06 reported, and LESS than the
.04 that they pre announced a few days ago!
Fair enough. Here is what I see as more important from the latest financial report:
QUARTER ENDED JANUARY 31, 2000
Revenues for the quarter ended January 31, 2000 totaled $1,556,937 representing an increase of 264% or $967,609 from $589,328 reported for the same quarter a year ago. Revenues increased largely due to the rapid growth of Atlas Design, our human resource company, as well as releases for the Company's INIVEN products.
Hmmm, company shows huge % growth in revenues due to one of their new business ventures. Excellent.
Gross margin for the quarter totaled $361,651 representing 23% of revenues as compared to $(4,956) or (1%) of revenues for the quarter ended January 31, 1999. The increase in gross margin is mostly due to the lower overhead costs associated with the human resource business as well as reduced labor costs of producing the INIVEN product line.
So, let me get this straight, not only did they show a huge % increase in revenue but they also showed a decrease in cost for the same unit resulting in an increase in gross profits from negative to $361k - Excellent!
Selling, general and administrative expenses decreased from $503,742 to $242,675 for the quarter, representing a decrease of $261,067 as compared to 1999. This decrease is attributable to lower consulting expenses incurred during the quarter as compared to 1999.
Ooops, more good news. Continuing to cut costs be reducing overhead. Looks like that was money well spent in 1999 as it seems to be paying off now. See above for proof of that. - Excellent!
Additional revenues of $210,887 were received for the sale of New Jersey State losses for fiscal years ended July 31, 1994 through July 31, 1998.
As a result of the foregoing, the Company reported net income of $328,743, or $.06 per share for the quarter compared to net loss of $510,338 or $0.12 per share.
Hmmm, again I see good news. What a spectacular quarter CNLG had and looks to be the beginning of quite a turn around story.
It's okay to short - it's part of the free market system - just admit it, eh?
mike |
