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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (3520)	7/27/2008 7:37:30 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

It is simply odd. From 1.59 to 0. At this point I believe that Crocs resorted to somewhat creative, aggressive accounting in earlier quarters. It could have to do with revenue recognition and inventory valuation.* One quarter earlier: Guidance For the year ending December 31, 2008, Crocs reaffirmed its previously revised outlook of revenue growth between 15% and 20% over 2007 levels with diluted earnings per share in the range of approximately $1.54 to $1.64, including the total pre-tax charges of approximately $20 million, or $0.16 per diluted share associated with the shutdown of the Company’s Canadian manufacturing operations. Excluding the charge, fiscal 2008 diluted earnings per share are expected to be between $1.70 and $1.80 Now: Despite lower full-year expectations, Crocs said it believes its inventories at the end of the quarter will be down 15 percent compared to the first quarter. (>>> writeoffs coming?) Furthermore, Crocs reduced its full-year outlook. The company now expects to break even in the fiscal year, including a charge of 16 cents per share related to the shutdown of the company's Canadian operations. (*there are hints of weaknesses) Crocs restates quarterly financials Shoe manufacturer Crocs Inc. restated its quarterly finances Friday to correct financial errors. The Niwot-based company (NASDAQ: CROX) said in a filing with the Securities and Exchange Commission that the errors happened in the quarter ended March 31. The company said it found errors in reviewing the quarterly financials, including a $393,000 mistake in the exchange rates used to translate foreign currency cash flows. Crocs said fixing all the errors will decrease net cash used in operating activities by about $10.6 million, and increase net cash used in investing activities by about $10.1 million.