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Biotech / Medical : Biosource International -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (574)	10/29/1998 2:26:00 PM
From: MikeM54321	Read Replies (2) \| Respond to of 696

James H. Chamberlain, Chairman, President and Chief Executive Officer of BioSource stated, "While the inventory reserve we have recorded has a negative impact on third quarter earnings, it reflects management's change in approach to utilizing such inventory. We firmly believe this approach, coupled with the manufacturing efficiencies we have experienced, will result in a stronger company for the future." Joe, I read and re-read the statement. It's really appears to be a crafty way to dodge a big problem. What they decided to write-off almost equaled their entire sales for the quarter! And like a previous poster said, there is no mention of, "earnings per share before a one-time charge." This seems suspicious also? Does it mean it will happen again? Plus, if you suddenly decide to do a, "non-cash" write-off of this amount of inventory, that hits the balance sheet. Doesn't this mean the book value decreases the same amount as the write-off? So what is the new book value per share? That would be interesting to know. His sentence about, "will result in a stronger company for the future," is almost funny if it didn't hurt. So is he saying, "since we dumped all this inventory as a loss in one quick shot, we can fill the pipe back up and record it as revenue until we decide to dump it again." Geez, I could be drawing the wrong conclusions, but it's not my fault their press release explaining what happened was written so poorly. I'm just trying to give you some ideas for some questions when you get a hold of the company. Can't wait to find out what you hear. I hope this can be explained better than their press release did. I truly appreciate your efforts in keeping us informed. Thanks for the work you do keeping us abreast of everything you learn. Thanks, MikeM(From Florida)