IASG records $65m non-cash loss in Q3

SSN Staff  - 
Thursday, November 16, 2006

ALBANY, N.Y.--Although its third quarter revenue was down only slightly (six percent) from the previous quarter, Integrated Alarm Services Group's most recent financial results included a net loss of $69.3 million, due mostly to a non-cash impairment charge of $65 million.
IASG announced Nov. 9 that, after "evaluating financial forecasts, operating trends and comparison of IASG's recent common share price to its book value per share, the company determined that goodwill was impaired at Sept. 30, 2006. As a result, a non-cash goodwill charge of $65 million was recorded in the third quarter of 2006," according to a company statement.
Revenue for the first nine months of fiscal 2006 was $70.3 million, down five percent from the same period in 2005. The net loss, including the non-cash impairment charge for the first nine months of 2006, was $79.2 million or $3.25 per share, compared to a net loss of $14.4 million, or $.58 per share, for the same time period in 2005.