Orbital earnings PR excerpt on Ashtech/Magellan:
"The company's satellite access products sector generated $20,588,000 in
revenues during 1997's final quarter, an increase of 50% over 1996 fourth quarter revenues of $13,743,000, and contributed net income of $4,170,000 compared to a break-even quarter in 1996. Included in satellite access products sector net income is a one-time gain of $21,810,000 related to the merger of the company's Magellan Corporation subsidiary with Ashtech Inc. completed in December 1997, before considering certain one-time acquisition expenses and restructuring charges related to the merger."
How do you read this? A "one-time gain" of $21.8 million in net income -- does it represent all Ashtech retained earnings? And, combined with the $4.17 million quarterly income for the merged company (over flat last year), does it imply major Magellan losses of about $17 million in the quarter? That would seem extreme. What gives? |
