I'm trying to look into this question. At quick glance this could be stock repurchasing, foreign currency adjustments, etc. I will study it more closely today.
So far, the largest such reduction in equity came from "foreign currency" fluctuations. Pvsw wrote down the assets it was holding (denominated in foreign currency) to the balance sheet exchange rate.
If this is the reason for the June to December 2001 reduction in equity, then this has the potential to hit the income statement going forward. If accounts receivable and/or inventories were written down because of exchange rate losses, these losses will only effect stockholders equity until the receivables are actually collected and the inventory is actually sold. Then the paper loss becomes a real, income statement loss.
Like I said, I don't have the details yet and I'm just speculating at this point.
Still, your question was a good one and got me thinking.
I also agree, everything else about Pvsw looks very good.