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To: Zeus549 who wrote (4024)2/11/1998 11:23:00 AM
From: James Strauss  Read Replies (1) | Respond to of 7006
 
Extraordinary Charge...

>>>Jim,what's the hoopla over the increased revenue since any one who follows this stock knows that with the acquisitions the revenue can just about be figured within a few percentage points. Revenue is not going to drive this stock upwards, EPS is the only answer that ultimately matters to investors.I'm very interested to hear what they
will have to say during the conference call (but won't be able to monitor myself, but am sure you will give us a full report). If the acquistions and the last two quarters are a guiding light, I wouldn't expect that next quarters report is going to be a whole lot different. I'm assuming that they will close the Mindis deal and that it will generate extra charges etc. as have the past acquisitions. Revenue will increase of course but EPS will still be close to nil. Any compelling reasons to assess this any differently for now?
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Lee:

There was an extraordinary charge of $2,414,000 for early extinguishment of debt... That would have been worth another 2 cents net profit... I'm also expecting the economies of scale to benefit the bottom line going forward...

Let's see what Tom Wiens has to say...

BTW... Shareholders Equity jumped from $1.20 per share to $4.24 per share...

Jim