As you know, I tend to hate proforma financial statements, but once in a while they make sense. Orange’s quarter ended June 30 is one of those times. They sold their factory in Italy (LEM) on December 31, 2010. The June 30, 2010 quarter contains sales and expenses associated with LEM. The June 30, 2011 quarter does not.
Happily, Orange has helped us out and provided a pro forma income statement for the June 30, 2010 quarter as if LEM was gone. We’re going to use that one to evaluate what’s going on.