DON: Looks like a 2:1 split may be in the cards?
"...board had approved an increase in authorized common shares outstanding to 1 billion from 500 million."
Level 3 restates 1998 EPS for R&D charge
OMAHA, Neb., April 1 (Reuters) - Level 3 Communications Inc. said on Thursday it had restated its 1998 earnings per share to $0.64 from $0.40 due to an adjustment in research and development charges at the request of the Securities & Exchange Commission.
The communications and information services company said it had filed its 1998 Form 10-K with the SEC, reflecting an $85 million revision to an in-process research and development charge in the second quarter.
The charge was related to the acquisition of privately held XCOM Technologies Inc. on April 23, 1998, Level 3 said.
Level 3 said it accounted for the deal, valued at $154 million, as a purchase. Of the total, $115 million was originally allocated to in-process research and development and taken as a nondeductible charge to second quarter earnings. The price exceeded the fair value of the net assets acquired by $30 million, which was recognized as goodwill, the company said.
Level 3 said that after the SEC issued new guidelines last October, it reduced the charge from $115 million to $30 million and recorded an increase to goodwill of $85 million.
The goodwill is being amortized over five years and the revised charge is subject to final SEC review, it said.
Level 3 also said its board had approved an increase in authorized common shares outstanding to 1 billion from 500 million. The increase is subject to shareholder approval and will have no effect on the company's operations or financial condition, it said.
Shares of Level 3 closed at 72-13/16 on the Nasdaq on Wednesday, just below their 12-month high of 73-3/4. Their 12-month low is 22-3/8. |
