Excluding a 9-cent charge for the gradual write-down of intangible assets — the value of contracts Medco received when it was spun off from Merck and Company in 2003 — earnings per share would have been 86 cents.
Granted, Emachines eeee only eked out a profit of $737,000, or 1 cent per share, before write-downs of intangible assets on sales of $249.8 million.
Previously, companies had to write down intangible assets and goodwill over time, on a fixed amortization schedule.
The firm also said today that it will write down $12.3 billion in intangible assets this quarter, along with other charges.
The most recent quarter included a one-time charge of $2.3 billion to write down the book value of intangible assets.
The Cleveland-based company said its results also reflected write-downs on real estate-related investments, higher costs of other real estate it owns and write-offs of intangible assets.
This included about $29 million of one-time costs related to refinancing and a write-down of an intangible asset due to the recent re-branding of print products in the Embarq territory, the company said.
Excluding reorganization charges and the amortization and write-down of intangible items, the loss would have been $206.3 million, or 61 cents a share, 3Com said.
Analyst Justin Jordan forecast further restructuring at the company, with disposals and bolt-on acquisitions: Following WS Atkins' decision to write down the carrying value of its intangible assets to zero with its 2013 [results], we view [the loss making US business Peter Brown] as a precursor for closure or disposal of the business in late 2014.
The plunging oil price also saw Centrica write down the value of its assets by £1.4bn.
Despite a management shakeup, a stagnant advertising market, an SEC investigation and a stock price down 60% this year, AOL Time Warner's profusion of intangible assets still makes it an attractive company, according to Low and Kalafut's research.
