it's not a question of allowing someone to cook the numbers. it's
just good business sense. i'm no accountant, but things like
provisions for income taxes and costs of goods sold could easily be
tweaked to post a rise in net income per share over last year. this
isn't a software company so ADTN can't play the microsoft game, but
just take a look at the numbers and tell me how hard it would have
beeen to have come up with a decrease in earnings year over year if
that were your intent.
===
ADTRAN Condensed Statements of Income
For the periods ended December 31, 1997 and
December 31, 1996 Unaudited
For the Year For the Year
Ended Ended
Dec. 31, 1997 Dec. 31, 1996
Sales $265,334,768 $250,120,836
Cost of sales 130,253,531 129,953,371
Gross profit 135,081,237 120,167,465
Selling, general and administrative
expenses 44,973,175 34,308,436
Research & development expenses 30,055,091 24,647,425
Profit from operations 60,052,971 61,211,604
Interest expense (1,838,814) (894,657)
Other income (primarily interest) 4,612,671 3,184,849
Income before income taxes 62,826,828 63,501,796
Provision for income taxes (22,617,556) (23,681,892)
Net income 40,209,272 39,819,904
Weighted average shares outstanding
assuming dilution(1) 39,565,497 39,566,090
Earnings per common share assuming
dilution (1) 1.02 1.01
Earnings per common share 1.03 1.03
(1) Assumes exercise of dilutive stock options calculated under the
treasury stock method.
===
marc |
