Saturday, May 12, 2012

How Many Elapsed-Days Will It Take Mattersight -- To Divide Six Numbers?

This feels a bit like a "shaggy dog story" style-bad joke -- along the lines of "How many Matttersight accountants does it take to screw in a lightbulb?"

By Mattersight's own admission1, the corrections to all the GAAP losses per share attributable to continuing operations figures (on the bottom of Note 1, on page 5 of the SEC-filed Form 8-K, Exhibit 99.1 dated May 9, 2012) will "result in a reduction of previously reported Basic and Diluted loss per share from continuing operations of ($0.02) for the [Q1 2011] period. The change in presentation will have no effect on net loss or any other amounts for any period. . . ."

That is, in plain(er) English "the errors won't affect any other calculations in the GAAP financials."

So -- as I said earlier, how can it possibly take five business days to divide the six numbers, as corrected (three annual figures, and three quarterly figures), by the basic and fully-diluted share equivalalent totals -- and then hit the EDGAR submit button?

My punch-line to my own riddle, above? It seems that Mattersight's corporate reporting staff conducts its operations on the time-frame dictated by the newly-discovered Mayan calendar (See The New York Times story -- on the latest-Guatemalan find, here).

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Note 1. It should also be noted (for the sake of completness) that it is possible with respect to some of the periods, the GAAP Continuing Operations Loss Per Share will decrease -- i.e., get better -- not worse, depending on whether the preferred is anti-dilutive, or dilutive, at that point in time, looking backward three years. Otherwise, I would have completed the calculations myself, already. So, do be careful out there.

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