Earnings call last night was a love fest. Have not heard that much backslapping since last Christmas party at Enron. Not an unexpected response to a hard selling management by Wall Street annalists with liberal arts degrees. Even a rookie accountant would see how crooked NetSuite's Balance Sheet and Income Statement is. For all those accounting sleuth here are some pointers:
1. "Goodwill" up by almost 30% from last quarter / from $35M to $45M
2. "Other long-term liabilities" up by more than 300% from $5.4M to $18.1M from last quarter
3. "Total liabilities" up by more than 10% in just one quarter, $27.6M
4. "Operating expenses" up by 15% while revenue up just 7% from previous quatretr
Finally the number of shares up by almost 2 million in just first quarter, at the current price its more then $160M. That money is coming out of the pension funds straight into managements pockets, that is 180% of the revenue in reported quarter! This is just scratching the surface.
I'm not going to touch the double booking of revenues, the discount schemes that have been ruled illegal by SEC time and time again and many other shenanigans.
I can't judge the quality of the of the product NetSuite sells but the accounting does not pass the muster.
I wonder if someone will beat me with the report to the SEC.