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Technology Stocks : Ariba Technologies (Nasdaq-ARBA)

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To: Thotdoc who wrote (2026)1/15/2002 8:32:25 AM
From: Suzanne Newsome  Read Replies (1) of 2110
 
The most worrisome thing I read, which is not in the list of risk factors, was about the "impairment of goodwill." The company took a writedown of over a BILLION dollars on the impairment of goodwill associated with acquisitions. Thus the $10 per share loss reported for 2001. The biggest writedown was connected to the Tradex acquisition. An impairment of goodwill charge is taken when the company believes the acquired company is not going to pan out as expected, to put it briefly. So, either somebody made some really bad, expensive decisions about the acquisitions OR management is taking these charges when business is really bad anyway in an attempt to clean up the balance sheet (and income statement). I sure would like to hear management's explanation of this.
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