Revenue actually went up to $29 million from the $1.9 million of June 1995 - obviously very impressive.
As far as how revenues are going to be this quarter, boy, I don't know. It's really hard to tell w/ a co. like KLOC as the accounting rules relating to revenue recognition are a little complex, especially when some of these announced projects are quite a few months in the making. W/ all the announcements they've been making, one would expect to see another large improvement over a year ago, but it just depends on the timing and their method of revenue recognition. I'm keeping my fingers crossed, however.
For the stock price to go up, I think that we need to see a solid quarter for both revenues and earnings, w/ an emphasis on EPS growth.
In a way, it really doesn't matter how many add'l shares they issue, as long as EPS grows faster than the proportionate dilution. That's a stiff challenge, but they better be up to it if they are going to continue to use their common stock as currency.
As far as pushing for a good revenue report in advance of the issuing of the add'l shares, the co. has got to be careful here. If they elect to be aggressive on the revenue recognition, any upward movement on the stock will be short-lived as recognizing revenues now that more properly should be matched against future activity and expenses will only cause negative earnings reports later. Also, the co. would be opening themselves up to shareholder lawsuits due to their thinly-veiled attempts to manipulate the share price.
So do I think they would do such a thing? I haven't been around KLOC long enough to know for sure, but I really don't think they're stupid enough to try something like that. The SEC, your shareholders, and their attorneys knocking on your door is not a real fun thing to have. It would also go a long ways towards ruining any chance for KLOC to be a significant player in Hollywood. As they say, "you'll never work in this town again."
Here's hoping for the best. |
