Prime Computer Inc expects to show a significant loss this year as a result of partial writedown of goodwill incurred in the leveraged buyout by J H Whitney & Co and costs incurred in defending itself from the hostile takeover bid by MAI Basic Four Inc – but the company says it will show a profit at the operating level this year, and also in 1990; profits from the services division alone are expected to cover the $140m of interest on the $1,000m of debt contracted in the buyout, and the company expects to be generating enough profit over the next three years to be able to pay off all its outstanding debt; Prime has decided to write down between $80m and $100m of goodwill on its books this year.
