SMF explained that
lower revenue and earnings are also expected to cause the Company to reverse its prior recognition as income, in the quarter ended December 31, 2011, of a realizable net deferred tax asset of approximately $3.7 million. The Company now expects to report a loss for the quarters ending March 31, 2012, and June 30, 2012, and for the year ending June 30, 2012.
In the fourth quarter of 2011, the company reported net income of $2.9 million and EPS of $0.33, entirely on the strength of the $3.7 million deferred tax asset. SMF has some unpleasant days ahead of it.
Shares are trading down nearly -54% at $1.33 in a 52-week range of $1.20-$4.22.
Paul Ausick
Contact [email protected] for any questions or corrections.
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