- $2.6 million, or more than half, of this $4.9 million number was merely the non-cash write-up of a deferred tax asset, not actual earned income, and is thus misleading for the Company to use in its attempt to boost management's performance and credibility;
- $1.1 million of this $4.9 million came directly from life insurance proceeds, as stated by CFO Gary Levine on the December 13, 2012 earnings conference call; and
- North & Webster estimates that at least $1.34 million of this $4.9 million came from "stuffing the channel" as the Company freely admitted in a December 13, 2012 press release where President and Chief Executive Officer, Victor Dellovo, stated, "Looking ahead, we expect that the recording of royalties for nine E-2D planes in 2012 versus only five that we had expected for fiscal 2012 will create a difficult year-over-year comparison in fiscal 2013." The Company booked revenues from nine planes in 2012, and two in the 4 th quarter.
North & Webster Responds To CSP Inc.'s Letter To Stockholders
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