Excerpts from the Management Discussion and Analysis of Financial Condition and Results of Operations (MD&A) of Biolase Technology, Inc., 2007 Form 10-K are found on pages 30-35.
Required
1. Why is the MD&A section of the annual report useful to the financial analyst?
What types of information can be found in this section?
2. Using the excerpts from the MD&A of Biolase Technology, Inc. 2007 Form 10-K, discuss whether each of the items that should be discussed in an MD&A are, in fact, presented in this section. Give examples to support your answer.
3. Evaluate the overall quality of the information presented by Biolase Technology, Inc. in the MD&A.