The 10K is out:
"During the fourth quarter of 2007, we recorded a deferred income tax benefit of $7.6 million relating to the release of a valuation allowance that we determined is no longer required on certain deferred taxes. The amount represents the estimated value of net operating losses that we determined were more likely than not to be realized in the form of reduced taxable income in the future. In future quarters, we expect to record a tax expense of approximately 38.5% of net income and reduce the deferred tax asset for the amount of the tax expense.
***
DEFERRED INCOME TAXES. As part of the process of preparing our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to estimate our income taxes on a consolidated basis. We record deferred tax assets and liabilities for the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts recorded in the consolidated financial statements, and for operating loss and tax credit carry forwards. Realization of the recorded deferred tax assets is dependent upon our generating sufficient taxable income in future years to obtain benefit from the reversal of net deductible temporary differences and from tax credit and operating loss carry forwards. A valuation allowance is provided to the extent that management deems it more likely than not that the net deferred tax assets will not be realized. The amount of deferred tax assets considered realizable is subject to adjustment up or down in future periods if estimates of future taxable income are changed. Future adjustments could materially affect our financial results as reported in conformity with accounting principles generally accepted in the United States of America and, among other effects, could cause us not to achieve our projected results.
We have determined, based on all available evidence, that it is more likely than not that deferred tax assets of approximately $7.6 million will be realized and our fiscal 2007 income statement reflects a non-cash benefit in that amount. We have estimated an average growth rate of 12% in taxable income during the net operating loss carryfoward period in determining the realization of the recorded deferred tax asset.
In assessing the potential to realize our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of the deferred tax asset considered realizable, however, could be reduced if estimates of future taxable income during the carryforward period are reduced.
secfilings.nasdaq.com
Does anybody know how you can reconcile the above referenced:
"We have estimated an average growth rate of 12% in taxable income during the net operating loss carryfoward period. ***"
With this statement concerning 2008 from the Q4 PR:
"“Based on our current assessment of market demand, we expect the positive trends exhibited in our business in 2007 to continue throughout 2008,” Staunton continued. “Our plan for 2008 anticipates growth in all of our end markets, particularly in the computing area as our custom devices for printers gain momentum. As an early estimate, we anticipate sales in our target market to be as follows: metering (27% of sales), computing and information systems (34% of sales), automotive (14% of sales), and industrial, scientific and medical and other (25% of sales). On the strength of our plans for top-line growth, we expect to continue to benefit from the operating leverage built into our business model to grow net income excluding stock-based compensation and income tax expenses in excess of 30%.”
businesswire.com
0|0 |
