Their non gaap earnings ex out the tax gain. I suggest you look at the WSTL earnings pr, they add back to operating income amortization expense which is something that should be added back, it is absurd not too, and SBC which is debateable but everybody does it so I do as well. There is no funny games going on with taxes to get that .09 eps in a seasonally weak quarter. They have plenty of NOL's I believe. I think WSTL is very attractive here, with and impressive balance sheet, good cost control, chance at .50-.60 earnings in fy 19, possible accretive acquisition coming using there cash, laser focused on being accretive as well. I could be wrong, but I think it is a good opportunity. All is just my opinion, and I could always be wrong though.
I don't understand why amortization is considered an absurd expense. The cash flow may be upfront, but that doesn't make it irrelevant. If Company A spends $100m developing a patent and is then acquired by Company B for $100m then you're basically saying that you can ignore the cost of that development over the life of that patent.
Lets assume that the drug acquired by company B generates $100m in income before amortization over its life. Company B paid $100m for that drug and generated $100m in income for a net cash flow of 0. The value of that cash flow is 0. By ignoring amortization you would have overvalued the resulting cash flow by $100m.
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