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EagleTed
05-03-2003, 05:12 PM
http://www.businessweek.com/technology/content/apr2003/tc20030430_3074_tc055.htm

The eBay bulls had another run of delightful news on Apr. 22, when the online auctioneer unveiled more muscular numbers for the quarter ending Mar. 31. Profits soared 119%, to $104 million, vs. the same period a year ago. Meg Whitman & Co. clocked earnings of 32 cents per share, beating Street estimates by 4 cents, excluding one-time charges. Revenue rose 94%, to $477 million, year-over-year. Plus, eBay (EBAY ) raised its annual revenue forecasts by $150 million, to $2.05 billion, despite lingering economic uncertainties. Its shares rose 5% on the news and closed at an impressive $93.61 on Apr. 28.

...[however...]

From 1998 to 2002, Meyer calculates, eBay tallied a stock-based compensation cost of $558 million, including the change in the 2002 10K that added $127 million in options costs. During that same period, eBay's declared net income was $389 million. So, if eBay had to expense all those options for that prior period based on its current valuing method, its bottom line would go from a $389 million gain for the five-year period to a $169 million loss.