Hi, everyone.
I've spent the weekend reading the posts here and checking out Waldo's site, and I think you have a lot of potential here in BIT. Came over from someone's mention on Bid.com.
I checked out the financials on Bridges site, and I have a question. Before I call the company, I thought I would pose it here, in case I missed where someone may have already answered it.
The notes to the audited 1998 f/s talk about "a change in accounting estimate" for revenue recognition, essentially saying revenue is now being recorded upfront, rather than some deferral over the what appears to be the early part of a service/contract. I can't see if this change affected fiscal 1998 or 1997, but if it was 1998, that could explain how the company was able to exceed earnings per share projections (see Buy Low, Sell High est. of .06). Since a change in estimate does not have to be accounted for retroactively, comparing revenues year-to-year may not be on the same footing. I'm certainly NOT saying this is fraudulent or anything like that -- I just wonder how much that change contributed to BIT becoming profitable in 1998, and getting to the .11 per share.
Like I said, I wonder if anyone else (besides a beancounter like myself) has asked the company this. Unless someone can post here the answer, I intend to call the company next week to ask the $ effect of the "change in estimate". If I find out anything, I will of course, post it here.
Thanks, and oh, congrats to those of you who got in before the recent rise in price.
Brad |
