"It appears that the first quarter of 2004, the operating expenses will significantly increase again to about $24.5m, assuming another 7% quarter-over-quarter increase per guidance" - Thanks for your views on expenses. It will be interesting to see what is driving the 1Q04 increase in costs.
I certainly agree with you that "the significant increases are in General and Administrative expenses up 19% in 2003." It seems to me that the increase in "D&O liability insurance, which increased about $1.5m in 2003, and would explain about 50% of the $3m increase in G&A expenses" coincided with the management initiative to increase the company indemnification to the "maximum" under PA law. I have always questioned the wisdom such an indemnification for the personal benefit of Directors and Officers at great cost to shareholders, not only the painful financial costs we are incurring, but perhaps misalignment of interests as well.
All JMHO.
Regards,
Corp_Buyer
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