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Why did he ignore the other $71 million? That's a fair chunk. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be a
by hessenwolf 15y ago
Why did he ignore the other $71 million? That's a fair chunk.
The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $238 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $60 million, and non-cash interest expense related to the convertible senior notes, expected to be approximately $11 million.
- blrgeek 15y ago$60MM is non-recurring acquisition expense - capital expenditure is an asset - and therefore not an 'expense' this year. In his intro his statement that there is a problem with 'convertible bonds' refers to this $11MM non-cash interest expense on the convertible senior notes. On the convertible notes, the accrued 'non-cash interest expense' (which is not an expense (: ) will eventually convert to stock and dilute stock holders. The stock-based compensation is now $117MM and doubles to $238MM next year and is a huge hit on their earnings, current and future. Compared to the pitiful $11MM 'non-cash interest expense' which is not an expense :).
- hessenwolf 15y agoThank you.