No. of Recommendations: 2
Yes. The dilutive effect of the convertible debt is included in 'diluted eps' in the company's financial reportings. In the last 10-Q filed the dilutive effect is 4 cents per share based on an additional 3.033M shares..

See Note 2 on page 7:

http://www.sec.gov/Archives/edgar/data/914329/00009143291300...


Looking at the original bond agreement from May 2006:

http://www.sec.gov/Archives/edgar/data/914329/00011046590603...

there doesn't appear to be a call provision (where FEIC could have repurchased (or 'called in') the bonds). And since there was no mention of calling in the bonds as of the last 10-Q filed in May, I assume no bonds were called in by FEIC. So yes, I would assume there is a dilutive effect of approximately 3M shares---however, that was already accounted for in past earnings reports via the 'diluted eps' figure(s).
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