So what do you think....do we really need a stock split now or will the value just decrease by half tomorrow? Does anyone have info on the Schneider deal? Why the large write off? Large current liabilities also...any thoughts anyone..any positives from this report?
>Why the large write off? The larger the better. They're really pushing the envelope taking such a big charge for in process R&D. It's a gimic to avoid years and years of goodwill amortization and the SEC hates it because it's so phony. But if they can get away with it, so much the better.
>Large current liabilities also... They funded the Scneider purchase with commercial paper issuance pending more permanent debt and equity financing sometime next year.
I don't know where the $31 million charge for the NIR SOX recall is, but hopefully it's in cost of goods sold. If so, then gross margins excluding this were down but still over 70%. The Japan charge was much bigger than expected, which might just be conservative to make sure there aren't any future charges. Sales were up nicely, so at least before the release of the Duet, they were killing Guidant.
They closed the conference call to the press and the public, which might possibly be a good sign that they are determined to explain everything thoroughly to analysts before the press starts misinterpreting things. We'll know tomorrow morning when the analyst reactions come out.