New EPS Standard SFAS No. 128 Effective 12/15/97
Hello Greg,
Just wanted to post this as a reminder of accounting change applicable to SOLP's first quarter earnings report about to be released.
For the three months and fiscal years ended September 30, 1997 and 1996, the Company calculated earnings per share (EPS) in accordance with Accounting Principles Board (APB) Opinion No. 15. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 128, ''Earnings per Share,'' to replace APB Opinion No. 15. This new statement simplifies EPS by altering the criteria for defining and calculating EPS. SFAS No. 128 is effective for financial statements for both interim and annual periods ending after December 15, 1997. All prior period EPS data must be restated and early application of SFAS No. 128 is not permitted. Under APB No. 15, fully diluted weighted average common shares outstanding for the 12 months ended September 30, 1997, increased to 9,091,644 shares from 5,452,595 shares due to the impact of the Modified Treasury Stock Method for calculating EPS. The increase in weighted average shares outstanding is due to the inclusion of shares issuable upon the exercise of warrants and options. Fully diluted EPS were $0.04 and $0.20, respectively, for the three months and fiscal years ended September 30, 1997, versus $0.07 and $0.13 for the same period a year earlier. The Company's EPS calculated under SFAS No. 128 for the fiscal year ended September 30, 1997, would have been $0.25 basic EPS and $0.23 diluted EPS, and the weighted average common shares outstanding would have been 5,131,751 for basic EPS and 5,649,018 for diluted EPS.
Regards,
Tom |
