Piscataway, New Jersey-based Silverline reported a net loss of $54.6m for the 12 months, compared to a net profit of $26.6m in 2001, on revenue that fell 6.1% to $142.9m. The bottom line was hit by a restructuring charge of $52.6m taken during the year to write off the goodwill against its acquisitions, which included its ill-timed $99m purchase of e-business integration firm SeraNova Inc in October 2000.
Silverline said the delay in releasing the full-year results was due to changing its auditors as well as the holiday season. The company will also be late filing its Form 20-F annual report with the US Securities and Exchange Commission, which is being put back to February 17, from its initial intention of mid-January, as a result of changes to the dates of its fiscal year and the preparation of comparable financial statements.
The company also released figures for the quarter ended June 30, 2002, which showed a net loss of $9.99m compared to net profit of $704,076 in 2001, on revenue that slumped 54% to $21.2m. However, the company did not release information on its cash position, which is expected to be precariously low, and meant that Silverline was forced to sell off its American Express travel services division to rival Cognizant Technology Solutions last November for approximately $10m.
Source: Computerwire
