IBI Group Inc T.IBG.DB.E

RE:Last post on a huge quarter...

[tesh]

Caillen I believe that the adjusted net loss of $7.6 milliion is after EXCLUDING the WIP and A/R writedowns not including them - read the release again. Further please look at their last year end statements for the definition of how WIP is determined to see how it affects their reported sales and you will see that a WIP writeoff is tantamount to an overstatement of sales for who knows how many quarters. The decision to write off these items is probably not primarily for tax reasons although that will surely be a mitigating factor in assisting their cash flow but in fact would have been required by the auditors as part of the year end audit. Good on them for finally taking more proactive steps to bring their A/R down and improve cash flow however this is more of a one time item.
This quarter is an unmitigated disaster in terms of poor operating results, uncertainty as to what the actual cash flow going forward is and another hit to the company's reporting credibility.