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Biotech / Medical : SAFESKIN

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To: Suma who wrote (541)1/12/1999 5:33:00 PM
From: Alan Bershtein  Read Replies (1) of 828
 
Think the one time charges will result in lower earnings ?

Yes, the charge will result in lower earnings. However...
I think the way it works is the one time charge will be considered an extraordinary item. Extraordinary items are segregated from the results from normal operations in the income statement to enable apple to apple comparisons with previous periods. In other words, earnings will be subtotaled before the one time charge so we can compare the results of normal operations.

It is the results from normal operations that concern us as investors. Also, by taking this one time charge, SFSK should benefit in future periods.

Anyone with a better understanding of this, or anyone who can do a better job of articulating the treatment of extraordinary items, please do so. Thanks.
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