Revenues, cash flow and all other aspects of the quarter will not change with the single exception of the balance sheet, which will see the costs related to the leases that were capitalized come off of the Assets side. Even though there is little actual impact from this restatement, the fact that Rockford missed the capitalized costs for these leases has raised the spectre of doubt surrounding the company, which is why the market is pasting it today on five times normal volume. Given that results from last year have already been examined by an accountant, odds are that they are fine. Given the revenue growth in excess of 50 percent for the last five quarters, the proceeds from the firm's July 1995 initial public offering have spurred its growth. Unless today's problems point to significant accounting problems at the company, investors might want to take a closer look at Rockford.
More details are available in the Fool Conference Call Synopsis in Earnings Central .
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