SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : CCGI: ComTech Consolidated
CCGI 8.510-3.3%Feb 13 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: kcgiant who wrote (188)11/11/1998 11:12:00 PM
From: Joe Bilich  Read Replies (1) of 394
 
Pro rata means pro-rated. In this case I believe what they are indicating is that, because of the way the acquisitions are now being accounted for, CCGI can show as earnings only a portion of those earnings attributable to the acquired operations. Essentially, I think this means they can't count as earnings any amounts the acquired companies earned before the deals CLOSED. This applies to prospective acquisitions as well--they can not sow earnings from those operations until the deals actually close.

If I am correct, this is not really bad news. Assuming the acquisitions DO close, they have the same "earnings engine" we expected and the numbers just show up a little later.

Of much more concern to me is the fact that we really haven't seen an audited anything. Until we do, none of the numbers are really going to be given credibility in the market.

Best thing that could happen is these new numbers, based on the change in accounting policy, getting approved by a reputable auditor. Much better to have this happen before an audit, rather than be a revision triggered by one. In fact, such a reclassification may be the result of early feedback from an auditor or prospective auditor. It is the kind of thing they might require before signing off. We can only hope that audited financials follow closely behind (though there is no indication these are forthcoming in the near term).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News