Ascend Communications (ASND) Message Board

STOCKTALK

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 : Ascend Communications (ASND)

ASND 201.40

+2.3%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mr.Fun who wrote (60935)	4/27/1999 10:07:00 PM
From: MikeM54321	Read Replies (1) of 61433

From the Press Release: "During the first quarter, Ascend recorded a credit to the purchased research and development expense related to the acquisition of Stratus Computer, Inc., in the fourth quarter of 1998. The credit resulted from the reallocation of negative goodwill arising from the sale of the non-telecommunications business units of Stratus and positively impacted net income for the quarter. As a result, actual net income for the first quarter was $108.8 million or $0.46 per share, diluted. Mr. Fun, What do you make of the unusual way of reporting net income? Normally a company would report the great number of $.46/share fully diluted FIRST. THEN, they would mention the unusual charge of, "negative goodwill." Kind of puzzles me why ASND would report a lower number($.36/share), and then ADD to the figure via this unusual charge. From what I gather, future fundamentals would have been (if not for the merger) based on $.46/share earnings and that is quite good. Can anyone figure this one out? I noticed some news wires stories didn't pick up this detail and others did. It's a shame because I think a lot of investors/reporters may have missed the third paragraph on the first reading. Did anyone pick up clarification/reasoning for the way net income was reported on the conference call? Thanks, MikeM(From Florida)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next