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

To: Charles Tutt who wrote (47484)	2/19/2002 1:05:58 PM
From: Steve Lee	Read Replies (1) \| Respond to of 64865

in case A the company would have increased revs by 50% and they would be 50% bigger. Plus the outstanding shares would have increased by 50% so the per share revs would be the same. All square in my opinion. In case B, it is not proforma because the cost is being accounted for rather than being ignored. If the company makes x and y a large number to defer accounting for the costs, then they will pay later, especially if they make a habit of doing so on multiple mergers. With proforma, they just count the revs and not the costs. Surely you can see the difference.