Value Microcaps Motherboard

[abh3vt]

Sskillz, I noticed that CXTI had a one-time consulting expense during the quarter:

"This increase in general and administrative expenses was largely due to a commission of $623,578 paid to an independent consultant for the sourcing of an e-Government contract with Huian County in the Fujian Province of China.
-from CXTI's Q3 10Q

Pretax income would have been 3422 v 2610, an increase of 31% y/y.

That would have added a tax-adjusted 0.02 to the 0.104 reported.

Other notes: tax rate dropped in the quarter to make up for higher rates charged earlier in Q2 and Q1. Normalized rate appears to be around 18% (9mos avg). Actual rate in Q3: 12% v 17% y/y; 9mos rate: 18% v 21% y/y.

No mention of the toxic convertible financing which caused the huge drop a few weeks ago.

Company appears to be on track to earning 0.40+ in fy05 and trades at 5x with a growth rate of 20%+