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Showing posts from September, 2010

Comtech Telecommunications Does the Right Thing by Fixing Errors in Latest Report

From time to time, I've zeroed in on various public companies who erroneously calculate a non-GAAP financial measure called EBITDA (earnings before interest, taxes, depreciation, and amortization) in violation of SEC Regulation G.  According to the SEC Compliance & Disclosure Interpretations, EBITDA is defined as net income (not operating income) before interest, taxes, depreciation, and amortization. In other words, the only way for a public company to properly calculate EBITDA is by starting with net income and adding back interest, taxes, depreciation and amortization. Any different calculation cannot be called EBITDA, but can be called "Adjusted EBITDA.”

Today, I am pleased to report that Comtech Telecommunications (NASDAQ: CMTL) released its Q4 financial results and properly revised its previous erroneous EBITDA calculation to call it an alternative "Adjusted EBITDA" in compliance with SEC rules.

Last July, I reported that Comtech erroneously added back &q…

What is Accounting?

The best definition of accounting I've ever heard comes from securities attorney Howard Sirota appearing on Russia Today's segment, "US Marks two years since Lehman Brothers collapse."
The difference between arithmetic and accounting is that in accounting the result can be any number you want it to be. See the video below:

Back in the day, my former nemesis Howard Sirota was lead attorney in the successful class action litigation against Crazy Eddie. Today, Sirota represents whistleblowers, such as me, who are frequent targets of retaliation by unscrupulous public companies such as (NASDAQ: OSTK).

Written by,

Sam E. Antar


I am a convicted felon and a former CPA. As the criminal CFO of Crazy Eddie, I helped my cousin Eddie Antar and other members of our family mastermind one of the largest securities frauds uncovered during the 1980's. I committed my crimes in cold-blood for fun and profit, and simply because I could.

If it weren't for…

Five More Public Companies Who Need to Learn How to Properly Calculate EBITDA under SEC Rules

Updated: September 12 at 6:07 PM ET

It's pathetic that so many public companies miscalculate EBITDA (earnings before interest, taxes, depreciation, and amortization) and violate Regulation G governing the calculation of non-GAAP measures such as EBITDA. It seems that too many CFOs, Audit Committees, and auditors don’t take the time to thoroughly review compliance with all appropriate SEC financial reporting rules.

Starting in 2007, I reported improper EBITDA calculations by (NASDAQ: OSTK). After a  brutal yearlong public battle,'s embittered CEO Patrick Byrne finally changed his company's EBITDA calculation to comply with Regulation G. For additional details, please read Lee Webb's Stockwatch article and Richard Sauer's book.

Last July, I reported apparently erroneous EBITDA calculations by Penson Worldwide (NASDAQ: PNSN) and Comtech Telecommunications (NASDAQ: CMTL).

In this blog post, I will report erroneous EBITDA calculations by fiv…