It comes from the top of page 5 of Mattersight's most recently-filed SEC Form 10-K:". . .We have not realized an operating profit in [Ed. Note: THIRTEEN]elevenyears and there is no guarantee that we will realize an operating profit in the foreseeable future.
As of December 31, 2011, we had an accumulated deficit of $185.8 million. We expect to continue to use cash and incur operating expenses to support our growth, including costs associated with recruiting, training, and managing our sales force, costs to develop and acquire new technology, and promotional costs associated with reaching new clients. These investments, which typically are made in advance of revenue, may not yield increased revenue to offset these expenses. As a result of these factors, our future revenue and income potential is uncertain. . . ."
That's simply. . . crazy. Who runs a company for 13 years, shifting business lines, starting new businesses, exiting others, spinning others off. . . without ever once bothering to record a full year of net earnings per share, after taxes?
This isn't some R&D burdened biotech, banking on one pivotal FDA approval -- no, these businesses were fully-formed (at the revenue line) when they were spun-off in 2000. It simply seems that Mr. Conway cannot bring his expense-lines in beneath whatever revenue he generates -- for nearly 150 straight months, now.
Mind-boggling.
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