Gilead, I would also back out the co-op litigation settlement income from GM because the company mistakenly (IMHO) included that in Q4 revenue:
"Revenues from the Company's projects increased $27,097,000, or 103.1%, to
$53,378,000 for the year ended December 31, 2005, as compared to $26,281,000 for
the year ended December 31, 2004. This increase in revenues was primarily a
result of the Company's increased number of contracts in progress at December
31, 2004, as well as projects the Company obtained during 2005. Revenues for the
fourth quarter of 2005 were $17,101,000, an increase of $10,224,000, as compared
to $6,877,000 for the fourth quarter of 2004. The revenues in the fourth quarter
of 2005 include approximately $963,000 related to the Company's settlement of
the Co-Op City litigation. At December 31, 2005, the Company had backlog of
approximately $82,200,000. Approximately $68,000,000 of the December 31, 2005
backlog is expected to be completed in the next fiscal year. The backlog at
December 31, 2005 does not include a $9,000,000 contract which commencement is
subject to the project's owner obtaining financing. The Company is actively
seeking new projects to add to its backlog.
I would remove the 963 from both revenue (and GM). If I do this, then adjusted GM are 10.7%...still up a bit sequentially, but not equal to 15%.
AI
