While I still don't understand what they are doing, at least the calculations that go into the fully diluted EPS number (it is not a typo!!!) can be found on page 21F of the report. They are subtracting $32 million from net income, among a number of other things, and that is what wipes out just about all of the basic EPS number. Hopefully, they will explain the rationale behind these calculations tomorrow, but I'm pretty sure they have to do with what they feel are GAAP requirements regarding the convertible debentures.
I'll just say that I agree with both views on this subject that a) people should be focusing on the true fundamentals of the company, such as the $100 million in cash, and the continuing top and bottom line growth, rather than the absurd diluted EPS; and b) unfortunately, many people won't spend the time, will see that low number, and move on, thereby inhibiting some of the potential price appreciation.
Here are some 3rd qtr vs 4th qtr comparisons that I found interesting, by comparing the annual report with the 9-month numbers from the 3rd qtr report:
3rd Qtr 4th Qtr Total
Revenue 25.7m 31.2m 117.1m
Operating Income 13.3 17.7 49.8
Net Income 8.9 11.4 28.8
Cash ?? (didn't calc) 22.0 104.3
Someone else probably knows for sure but I thought their 3rd qtr was traditionally the strongest due to the winter illness season, yet we see better numbers top to bottom in the 4th qtr than 3rd qtr this year. Some of that may have to do with the economic conditions but I view it as a positive indicator on this company's growth prospects.
Aside from the weird diluted numbers and lack of mention of uplist (which I didn't expect anyhow), I'm very, very happy with this report.
GLTA!
Eric
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