To: JDN who wrote (206 ) 4/28/1998 10:03:00 PM From: Ted Trenholme Read Replies (6) | Respond to of 1956
Everybody I listened to the conference call today and got a few insights that should be shared. While earnings are reported at $.04 per share there was an explanation given regarding financial considerations that if used would give $.06/share. Here goes--The numbers used for the 4 cents were 4,938,000 shares and $195,000 earnings (earnings/shares=4cnts). However, # of fully diluted shares is approx. 7,583,000 (includes the preferred shares). This quarter earnings had a one? time dividend to the preferred of $260,000 which was counted against the quarterly earnings. Therefore the financial officer stated that the earnings could alternately be stated as $.06/share as follows (($195,000+$260,000)/7,583,000=$.06/share). An analysts question brought this issue up and they (CFO and analyst) were going to discuss it further off-line after the conference call. I don't have full understanding of this myself and my notes are skimpy but the call is fresh in my mind. The CEO (Kaputo?) mentioned that while 90% of the India work was y2k related, that they currently had proposals out for other work that was not directly y2k related and that work should start ramping up in the Fall. Kaputo made what sounded like an off the cuff remark about how the company has never been as busy as it is now in his ten years with CMND. A recruiting Officer has been hired in order to help the company get a better hand around the problems relating to staffing for y2k personnel. The analysts seemed to dwell on the skilled personnel shortage but I don't see that problem specific to CMND. The personnel problem seems to be most acute in the US verses India. Hence the India group would seem to represent a real advantage for CMND. Ted