It would seem that the point is that TLC's press release of
>>Thursday July 23, 4:08 pm Eastern Time
Company Press Release
SOURCE: The Learning Company
The Learning Company, Inc. Announces Second Quarter 1998 Results of
$.34 Per Share<<
is greatly exaggerated if you are trying to compare other software companies who use net revenues.
If returns & allowances were insignificant, maybe, but with 20% returns, I'd say investors must be advised of the differences in the reports.
For TLC the implications are immense: it's an illusion to say they have a 'net profit' before ammortization & merger costs, unlike Brod
or intuit which have earned money.
there's none who can say otherwise, and up until now this fact has been ignored.It's been hype, hype, and more hype, on the backs of the small investor who relies too much on others, psuedo-investor advisors.
This Q report reveals that TLC after accumulating 9 companies since
June 30/97:
1)gross revenues were essentially flat.
2)TLc has probably never earned any real cash,
3)TLC can never earn any profit,
4)investors have watched mgmt repeap hugh profits on repricing of options,
5)acquisitions have been simply a paper shuffle, rewarding lawyers,
analysts, brokerages and insiders.
6)the globe&mail article did signal a change.
good luck to anyone, who deserves it. |
