Write Offs, Charges, Revenue & Future Projections
Hello,
SOLP reported some really significant numbers today. The growth rates are terrific. i.e. "For the fourth quarter, revenues increased 68% to a record $9,419,000 from $5,623,000 for the same period last year." This revenue exceeded my guesstimate of $9,390,000. I am impressed!
Sadly, eps failed to make the grade due to some charges which I hope will not be repeated. Operating income for the three months ended September 30, 1997, includes charges of approximately $50,000 relating to the startup of the accounting and human resources temporary staffing and consulting business, and a charge of approximately $200,000 relating to a potentially uncollectible receivable.
I for one would like to know who the deadbeat is and if additional monies are owed by the company in question? What is the total exposure? How could this happen? These questions and many others will most certainly be asked during the conference call.
Additionally, I am concerned regarding the effect that downsizing by AT&T may have on SOLP's revenues as the telephone giant accounts for a large portion of business. This was stated in a previous SEC filing.
The next earnings release cannot come soon enough for me. If there are no additional charges to be taken then we are looking at a fifty million dollar company plus with a potential eps of $0.32 - $0.37 in 1998.
Regards,
Tom |
