Pro forma reformer

Abstract

Andy Schopick, vice president of research at Nutmeg Securities Ltd., published a scathing report in mid-July on the abuse of pro forma reporting among communications equipment companies. Among the companies cited in the report is 3Com Corp. A week after Schopick published his report, 3Com announced that it would stop reporting financial results on a pro forma basis and use only generally accepted accounting principles. Schopick also took Cisco Systems Inc. to task for blatantly disregarding the Statement of Financial Accounting Standards. Schopick also criticizes the pro forma reporting of Tellium Inc.