SCOX » Topics » Loss on Disposition and Impairment of Long-lived Assets

This excerpt taken from the SCOX 10-K filed Jan 27, 2006.

Loss on Disposition and Impairment of Long-lived Assets

 

 

 

2005

 

Change

 

2004

 

Change

 

2003

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on disposition and write-down of long-lived assets

 

$

 

(100

)%

$

2,355,000

 

1,336

%

$

164,000

 

Percentage of total revenue

 

0

%

 

 

6

%

 

 

0

%

 

33



 

During the year ended October 31, 2005, we did not have any losses on the disposition and impairment of long-lived assets.  During the years ended October 31, 2004 and 2003, we recorded a write down of long-lived assets of $2,355,000 and $164,000, respectively.  The loss on disposition and write-down of long-lived assets recorded during the year ended October 31, 2004 primarily related to goodwill and intangible assets acquired in connection with our acquisition of Vultus in June 2003.  We concluded that an impairment triggering event occurred during the year ended October 31, 2004 as we had a reduction in force that impacted our ability to move the Vultus initiative forward on a stand-alone basis and because an anticipated partnership that would have solidified the Vultus revenue and cash flow opportunities did not materialize.  Consequently, we concluded that no significant future cash flows related to our Vultus assets will be realized.  The loss on disposition and write-down of long-lived assets recorded during the year ended October 31, 2003 was primarily attributable to assets written off in connection with restructurings that occurred during that year.

 

This excerpt taken from the SCOX 10-K filed Apr 1, 2005.

Loss on Disposition and Impairment of Long-lived Assets

 

 

 

2004

 

Change

 

2003

 

Change

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on disposition and write-down of long-lived assets

 

$

2,355,000

 

1336

%

$

164,000

 

(91

)%

$

1,796,000

 

Percentage of total revenue

 

6

%

 

 

0

%

 

 

3

%

 

During fiscal years 2004, 2003 and 2002, we recorded a write down of long-lived assets of $2,355,000, $164,000 and $1,796,000, respectively.  The loss on disposition and write-down of long-lived assets recorded in fiscal year 2004 primarily related to goodwill and intangible assets acquired in connection with our acquisition of Vultus in June 2003.  We concluded that an impairment triggering event occurred during fiscal year 2004 as we had a reduction in force that impacted our ability to move the Vultus initiative forward on a stand-alone basis and because an anticipated partnership that would have solidified the Vultus revenue and cash flow opportunities did not materialize.  Consequently, we have concluded that no significant future cash flows related to our Vultus assets will be realized.  The loss on disposition and write-down of long-lived assets recorded in fiscal years 2003 and 2002 were primarily attributable to assets written off in connection with restructurings that occurred during each fiscal year.

 

EXCERPTS ON THIS PAGE:

10-K
Jan 27, 2006
10-K
Apr 1, 2005
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