Silicon Investor (SI) -- The First Internet Community

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 : METROMEDIA FIBER NETWORK (MFNX) -- Ignore unavailable to you. Want to Upgrade?

To: KLH who wrote (684)	11/8/1999 12:23:00 PM
From: Ryan Mak	Read Replies (1) \| Respond to of 1983

Yeap ... agreed with you and rea the followings ... NOTE: As a direct result of the Financial Accounting Standards Board's issuance of FASB Interpretation No. 43 "Real Estate Sales" (FIN 43), which became effective June 30, 1999, revenues for the three months ended September 30, 1999 were $10.7 million or 8.5% less than revenues of $11.7 million for the third quarter of 1998. In accordance with this interpretation, MFN elected to recognize revenues on certain sales contracts entered into after July 1, 1999 over the term of the contract rather than under the percentage of completionmethod. This change in the accounting for sales contracts does not change any of the economics of those contracts or the timing of cash received by MFN. Under the prior accounting method, revenues would have been approximately $32.7 million for the three months ending September 30, 1999, or an increase of 179% compared with the three months ending September 30, 1998. Revenues also include $2.1 million of revenues of AboveNet Communications Inc., acquired by MFN on September 8, 1999, for the period from September 9 through September 30. The net loss was primarily attributable to the increase in net interest expense related to the issuance and sale of the Company's 10% senior notes in November 1998. The loss was greater as a direct result of the aforementioned accounting change. Under the prior accounting method, the loss would have been approximately $15 million ($0.08 per share) less for the three months ending September 30, 1999.