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Technology Stocks : Verity (VRTY) -- Ignore unavailable to you. Want to Upgrade?

To: vampire who wrote (987)	6/23/2000 8:17:00 AM
From: Molly Mayhem	Read Replies (1) \| Respond to of 1011

Metsin6, the drop was due to the way in which they reported earnings. Earnings were only 0.19 per share on a fully taxed basis, but they had previously announced earnings of 0.39 with the tax benefits they had acquired from previous losses. I was foolish to buy yesterday morning at 44.5. Regards, Molly biz.yahoo.com Thursday June 22, 9:01 am Eastern Time Company Press Release Verity Clarifies Comparison of Reported Earnings to Analyst Estimates SUNNYVALE, Calif.--(BUSINESS WIRE)--June 22, 2000--Verity, Inc. (Nasdaq:VRTY - news), a leading provider of enterprise and Internet knowledge retrieval solutions, today issued a clarification regarding how its recently announced earnings compare with analysts estimates. On June 20, 2000, Verity announced record earnings for the fourth quarter of its fiscal year ending May 31, 2000 of $14.2 million, or $0.39 per diluted share. Verity stated that the earnings would have been $11.6 million, or $0.32 per diluted share, without the income tax benefit of $2.6 million as a result of the reversal of its income tax valuation allowance as required by generally accepted accounting principles. Comments received by Verity from investors and market participants subsequent to the release suggest that there may be some confusion regarding the Company's earnings as reported, and how they compare to consensus analyst estimates for the Company, which had been $0.15 per diluted share for the fourth quarter. In order to eliminate any possible confusion, the Company clarified that the consensus number is customarily derived from estimates generated on a ``fully taxed'' basis, without giving effect to certain tax benefits enjoyed by the Company as a result of net operating losses incurred in prior years. Historically, the Company, in accordance with generally accepted accounting principles, has not reported earnings on a fully taxed basis, due to these prior year losses. However, on a fully taxed basis, the Company's earnings for the quarter would have been $0.19 per diluted share (without the benefit of the tax adjustments referred to above), compared to the consensus analyst estimate of $0.15 per diluted share. Although the Company has not historically reported earnings on a fully taxed basis, it is issuing this clarification in order to avoid any possible confusion. The Company further explained that in conjunction with the reversal of its income tax valuation allowance in the quarter ending May 31, 2000, it is now positioned to begin reporting earnings on a fully taxed basis, beginning with the first quarter of its fiscal year 2001, which ends August 31, 2000.