Replies to post #70770 on GoodFellas Big Board Catalyst and Chart Plays

[butterfly89]

They still have a loss.

• Net loss reduced to $549,000 from $3,214,000 in year 2011.

just not a much as last year and it appears it may be turning around. That is the danger of comparing GAAP (Generally accepted accounting priciples) vs Non GAAP.


GAAP Earnings

Companies report their GAAP earnings in the standard income statement. The construction of an income statement must follow certain GAAP rules. The revenue recognition principle and expense matching principle dictate which revenue and expense items may go into an income statement. Without such a universal standard, it's impossible to compare a company's current earnings performance with its past performance and performances of other companies.

Non-GAAP Earnings

Companies may release their non-GAAP earnings based on management's need of emphasizing earnings performance of particular operational areas. Non-GAAP earnings often are more publicized to better attract investors' attention. When using non-GAAP earnings, companies may exclude certain expense items that management believes are insignificant to their current operations. Such expense exclusions help improve earnings performance. Conversely, any inclusion of non-GAAP revenue items such as customer deposits or prepaid cash proceeds also results in better earnings numbers.