Thanks, interesting reading. Now, re: lawyers' bill . . .
Two possible benign explanations for the increase in litigation expenses. (1) Lawyer's bills occur irregularly, and the bill was not received/paid (however recognized for accounting purposes) until this quarter, although work was done in previous quarter, as well. (2) There were legal costs associated with the acquisition of BAT that are thrown in there, as well, even though it's not, technically, "litigation."
Although there will always be legal expenses, especially with the ongoing lawsuit, keep in mind this is not a permanent expense at the rate of 2 cents per share.
Someone should ask Randy what the effect of the BAT acquisition was for this quarter, and going forward for the year. How has the business model changed?
Without the R&D, lawyer's bills, etc., it would have probably been about six or seven cents a share. Good, but not the blowout we'd been hoping for. I don't think we'll see major profit numbers until 3Q earnings, and then we have to see how much is government and how much is commercial. |
