Monday, April 17, 2006

Better late than never. Not.

The Corporate Overlords have finally gotten their act together to file the papers with the SEC needed back in October, restate their 3rd Quarter earnings and figure their 4th Quarter earnings for 2005. The answer? A net loss of $10 million for the year.

Now, they said that they were also going to do a "writedown of goodwill" to the tunes of $16 million. It took some study but I THINK it means that they aren't going to be posting as much income as initially expected because a bunch of that money is going into acquisitions. Goodwill is the difference between what they pay for the acquisition and what the acquisition is actually worth, trying to take into account things that don't have a solid value, such as patents, customer lists and trade names. A writedown means that you aren't going to be making as much money off of those things as you thought you would. The charming thing is that the aquisition that they are undervaluing is probably us.

Or something like that. It sounds like smoke an mirrors to me. Especially when, after screwing up with the SEC and NASDAQ for eight months and announcing $10 mil losses, the CEO says, "the Company continues to be well positioned with a strong balance sheet." Sorry, boss, but a $10 million dollar loss doesn't sound all that strong. And a $16 mil "writedown" says to me you're expecting more of the same.

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