Unfortunately, your growth in earnings and sales are an
artifact of Radisys' accounting of the Intel purchase. Radisys
bought Intel's division which had much larger sales than
Radisys, and using "purchase accounting" so that don't have to
add in Intel's sales to last years numbers. This makes the year
over year (and quarter over quarter) numbers look fantastic, but
are totally bogus. From the latest Radisys 10K here are the real
number (which show a drop in sales and only a small growth in
earnings.) By the way, this is why there is a good-sized short
position (and not the SEC investigation), those who pay
attention to the real numbers will see
that there is no growth story at all.
"The following unaudited pro forma information
presents the results of operations
of the Company as if the Acquisition had
occurred as of the beginning of the
respective periods, after giving effect
to assumed increases in operating,
research and development, and general
and administrative costs to operate the
business, depreciation of acquired fixed
assets, expensing acquired in process
research and development, and adjustments
to reflect the estimated impact on tax
expense of the Acquisition. The unaudited
pro forma financial statements are not
necessarily indicative of what actual
results would have been had the Multibus
acquisition occurred at the beginning
of the respective periods.
Year Ended December 31,
1995 1996
---- ----
(unaudited)
Revenues $ 110,152 $ 101,387
Net Income $ 6,857 $ 11,216
Earnings $ 1.15 $ 1.42
per share
" |
