Bill, EBIT was $82,272. Based on 13.7 MM shares, that comes out to less than $.01. They earned an additional $779,000 in interest and gain on the sale of marketable securities. Basically, the quarter was break-even, because the bulk of the loss was due to non-recurring restructuring and transaction costs.
I think the best way to view this merger is as a purchase of technology. Presumably we will see two results. First, NETA will integrate TISX products into its network security suite which will allow instant cross-selling (mainly of TISX products into existing NETA customers); and secondly, significant reduction in SG&A expenses in the TISX facility through elimination of redundant administrative positions and the retraining of the TISX sales staff.
Certainly, I'd hoped for better quarterly results, but because of the relative sizes of the companies, the dilution due to TISX should be small if the market behaves rationally.
Regards,
Paul |
