basea filed a 10Q for 2 mos ending 12/31. (They are changing their fiscal year.)
Here's the mgmt. comment on its losses:
Continuing Losses
The Company incurred a loss from continuing operations before taxes of
$3.2 million in the two months ended December 31, 1997, compared to a $1.7
million loss for the quarter ended January 31, 1997. The increased loss was
primarily due to low revenues, coupled with a significant increase in cost of
sales, more specifically, the increased software development salary and
labor-related expenditures of $0.9 million, which are primarily being expensed,
and not capitalized, as in the period ended January 31, 1997. Amortization
expense also increased significantly to $0.6 million, compared to $0.3 million
in the period ended January 31, 1997. The Company expects additional losses in
1998, including amortization expense currently estimated to be $3.3 million.*
The Company's ability to achieve profitable operations is dependent upon, among
other things, the completion of current development and testing activities for
PHARM2 and FlowStream, timely delivery and successful installation and
validation of its systems by its customers, and successful competition in the
markets in which the Company participates.* |
