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Huge Jupiter Write-Down . . . |
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Written by Ron Rovtar, Managing Editor, the Stock Asylum
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Tuesday, 18 March 2008 |
 Jupitermedia reported record revenues for the final quarter of 2007, but the company also reported a massive write-down that resulted in an accounting loss of $77.3 million for the year and $76.7 million for the quarter that ended Dec. 31.
The company said the $82.2 million "impairment charge" (which decreased to $76.7 million after taxes) was related to the write-down of goodwill and intangible assets. Other charges, including those associated with aborted merger talks involving Getty Images, contributed in a much smaller way to the company's reported annual loss.
"The intangible impairment is a non-cash charge and it does not affect our liquidity, cash flows from operating activities or debt covenants, or have any impact on future operations," said Jupitermedia chief executive Alan Meckler in a prepared statement.
"This impairment charge is not reflective of our positive view of the value of our underlying business. We remain optimistic and encouraged about the future success and value of our business."
Meckler did not outline exactly what the charges involved, but may provide more information in a conference call with industry analysts Tuesday morning.
Forbes' Investopedia in part defines an intangible asset as "An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace." Click here for Investopedia's discussion of intangible assets.
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