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Microcap & Penny Stocks : FBCE -- Ignore unavailable to you. Want to Upgrade?

To: lofalutin who wrote (275)	8/15/2000 1:37:39 PM
From: opalapril	Respond to of 365

I do not know or care whether the CFO's departure had anything to do with the earnings restatement, although it seems to me unlikely that a CFO who otherwise had performed well would be pushed out over this one comparatively lesser matter. In any event, at least three things mitigate against the financial restatement having any appreciable effect on the company's overall health or prospects. First, it does not affect past operating results, which remain very positive. Second, the effect on the balance sheet seems minor at the most. (Note that the impact on the six-month report summary is even smaller) Third, FBCE used the occasion to reaffirm its previous guidance about future operating results and profitability in FY 2011. In short, FBCE remains on track. One other thought: Could it be the error was caught by the company's outside advisors in connection with a pre-NASDAQ listing review?

To: lofalutin who wrote (275)	8/15/2000 2:00:04 PM
From: opalapril	Respond to of 365

Dr. Aslami: "This accounting treatment does not affect the net equity, the future operations, and the cash position of the company." "The accounting treatment provides for an increase of $5.3 million to paid-in capital that is offset by an increase to interest expense. The charge to interest expense flows through net income. The adjustment arose during the preparation of the company's second quarter report to the SEC in connection with the $6 million convertible note that was issued to Crescent International as part of their $30 million equity line commitment that closed on June 9, 2000. "The $6 million was used to partially fund the acquisition of Xtal in Brazil. Under the terms of the June 9th agreement, the company could issue up to $7.5 million in convertible notes. On July 5, 2000, the Company issued another convertible note for the remaining $1.5 million. The $1.5 million convertible note issuance gave rise to an $88 thousand accounting adjustment that will be reflected in the company's third quarter results. "This accounting treatment does not affect the net equity, the future operations, and the cash position of the company. As for the business itself, we are operating in a strong fiber market, and the expectation that the company will report income from operations for the year remains unchanged," said Dr. Mohd Aslami, President and CEO of FiberCore, Inc."" biz.yahoo.com