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Technology Stocks : Allen-Vanguard Rescue Board -- Ignore unavailable to you. Want to Upgrade?

To: beaverfever who wrote (199)	9/20/2009 10:37:28 AM
From: kidl	1 Recommendation Read Replies (1) \| Respond to of 724

Write-downs ... Further to Beaver's post Quickly went through the quarterly reports. The picture is indeed stunning and begs for some answers. Write-dows by quarter: Q1 Q2 Q3 Goodwill 0 3.95 Mil 11.34 Mil Intangibles 3.8 Mil 5.87 Mil 122.59 Mil Revenue 72.710 56.555 46.980 Drop Q over Q 22% 17% Why would they take such huge write-downs in Q3 even though revenue dropped less in Q3 than it did in Q2? The explanation in the Q3 NR doesn't seem to match up with the lower drop in sales. From the Aug 17 NR: "The Company noted that due to reduced revenues from the acquired assets of Med-Eng Systems (now renamed AVTI), management tested for impairment of goodwill and intangibles at June 30, 2009. This testing indicated that the fair value of the AVTI reporting unit was lower than its carrying amount. Management concluded that impairment of goodwill and of certain intangible assets had occurred, and reduced the carrying value of goodwill by $11.3 million, and of certain intangible assets related to the Electronic Systems business by $27.6 million and of certain intangible assets related to the Personal Protective Systems business by $91.4 million." Another "strange" item ... In previous quarterly report Nr's they always mentioned the order backlog which, per example, stood at $88 Mil at the end of Q2. Why is there no mention of the order backlog in the Q3 NR?????