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 : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (47416)	2/15/2002 7:54:32 PM
From: Steve Lee	Read Replies (1) \| Respond to of 64865

Not what the SEC thinks: Stephen Cutler, the SEC's enforcement director, today said the SEC is responding to the "seeming rash of financial fraud and reporting problems plaguing our markets" Pro forma would have a use if it accurately and honestly reflected operating profits. But it doesn't. Companies exclude interest, reorganisation, layoff and acquisition costs. But interest, reorganisation, layoff and acquisition costs are the facts of life, and are inevitable results of getting credit, reacting to change, employing and adding capacity. So if you want the benefits, you have to pay the costs associated. A viable business balances the costs with the benefits, rather than hiding them. EG Amazon. They exclude interest payments from their operating results. But their operating results should then also exclude all the sales they made as a result of the loans they took out. Clearly, this doesn't happen. EG Sun. They took people on during the good times and booked the resulting sales to the bottom line. But when it becomes apparent those new hires are not an economical long term proposition, they exclude the cost of laying them off from the bottom line. I could make more examples but you get the jist.