With almost 230M in cash & equivalents it is almost as ridiculously valued as, for example STMP, with the exception that they burn much more cash and also have a fair amount of debt on the balance sheet which is no longer convertible (and if it was - subject to adjustments of the present $91 conversion price, it would dilute the stock to infinity at $2 to 2.50).
Does anybody know what the acquisitions are good for (except diluting the stock)?
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We acquired Promedix and SpecialtyMD, Inc. ("SpecialtyMD"), on February 10, 2000. The acquisitions were accounted for under the purchase method of accounting. The acquisition costs of Promedix and SpecialtyMD were $325.3 million and $107.7 million, respectively. The intangible assets acquired in the Promedix and SpecialtyMD acquisitions were $325.3 million and $108.5 million, respectively.
Accordingly, intangible assets increased from $13.1 million at December 31, 1999 to $351.5 million at September 30, 2000, as a result of these acquisitions. The intangible assets are being amortized over two to three years and the amortization expense is estimated to be approximately $145.1 million per year, beginning February 10, 2000.
Promedix had no revenue and a loss from continuing operations of $12.1 million for 1999. SpecialtyMD had $31,000 of revenue and a net loss of $4.3 million for 1999.
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