next 10q due around 8/13 (last 5/13)
Three months ended March 31, 2001 as compared to three months ended March
31, 2000.
Revenues for the three months ended March 31, 2001 were $4,693,445, a 20.8%
decrease over prior year revenues of $5,923,396. This decrease resulted mainly
from a decrease of sales attributed by recessionary pressures in the U.S.
market. Sales were also affected by one collection not being launched in the
first quarter as compared to last year. Although we are off to a slow start, the
outlook for the year is still promising.
The net loss for the three months ended March 31, 2001 was $464,394 as
compared to a net income of $205,099 for the three months ended March 31, 2000.
This loss is attributable to the new FASB requirement that the ineffective
portion of gain or losses attributable to cash flow hedges be reported in
earnings. As the U.S. dollar strengthened dramatically in the first quarter of
2001, the contracts we engaged to protect our margins on U.S. sales had a
negative impact on net income. A good portion of these contracts will be retired
this year, which will negate this charge.
Basic and fully diluted losses per share for the three months ended March
31, 2001 were a $0.17 compared to earnings of $0.07 for the same period last
year. Earnings per share were calculated based on the weighted average number of
common shares as of March 31, 2001 of 2,764,092 and 2,786,714 shares as of March
31, 2000.
The Company anticipates a profitable year in 2001, improving slightly on
the performance in 2000.
I compute a $2.24 book value with 84 cents in net current assets at 3/31 (5/14 10q). Since they anticipated a profitable year, better than last year for the full year, much of the quarters loss & then some will be made up for.
Approx 18 cents was the loss for this hedging. Last year they earned 11 cents so I expect 12 cents is a reasonable expectation. (Hopefully the economy hasnt hurt them too much)
They have about $560k which is in dispute with their IRS which is not accounted for because ROSD believes its an error.
A 13d buyer,LYNCH TALBOT has continued to buy and owns over 10% now.(.994 Cents average cost)
Offshore fund buying via Dalten Kent securites, NY.
The
reporting person has to date spend $278,184.80 acquiring common
stock of the Issuer.
Item 4. Purpose of Transaction
The acquisition of common stock of the Issuer has been made for
investment purposes. The reporting person may, from time to time
and in accordance with any applicable restrictions imposed by law,
continue to acquire further shares of common stock of the Issuer.
The reporting person may seek representation on the Board of
Directors of the Issuer.
Interest in Securities of the Issuer
(a) Aggregate Number and Percentage of Shares:
280,800; 10.1% of common stock of Issuer
All transactions below were effected in the name of the reporting
party in open market trades on the NASDAQ SmallCap market through
Dalton Kent Securities, New York.
Date Number of Shares Price per Share
02/23/01 5,000 $1.13
03/01/01 11,100 $1.00
03/02/01 2,500 $1.02
03/06/01 2,600 $1.02
03/07/01 9,000 $0.99
03/09/01 6,500 $0.97
03/12/01 11,300 $1.12
05/31/01 29,500 $0.90 |
