IASG's $65m Q3 losses

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Monday, January 1, 2007

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. Charles May, chief executive officer and president of IASG, also noted in a statement that "the third quarter has typically been IASG's highest quarter of attrition." Joe Reinhart, director of investor relations as IASG, said, "we are not sending any messages" with the announcement, and added that the Q4 report would soon be out.
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. As of press time, shares were selling for $2.87, with a 52-week high of $4.29.