Danka Reports Fourth Quarter Results, A Loss of $100 Million
Press release from the issuing company
St. Petersburg, FL, June 8, 2001 - Danka Business Systems PLC (NASDAQ: DANKY) today announced results for its fourth quarter and twelve months ended March 31, 2001 (fiscal year 2001). The Company reported a loss from operations of $105.3 million for the fourth quarter as compared to earnings of $1.3 million in the fourth quarter of fiscal year 2000.
During the fourth quarter, the Company's cost of sales and earnings from operations were negatively impacted by a pre-tax, non-cash charge of $53.9 million related to the write-off of excess, obsolete and non-recoverable equipment, parts and accessories. The Company recorded $40.2 million of this write-off in cost of retail equipment sales and $13.7 million of the write-off in cost of retail service, supplies and rentals. The Company's SG&A expenses were negatively impacted by a pre-tax, non-cash charge of $28.6 million, of which $15.3 million related to the Company's facilities and $8.0 million related to additional trade receivable reserves. The Company also wrote-off goodwill attributable to one of its U.S. subsidiaries resulting in a charge of $6.9 million. The Company incurred a net loss of $127.4 million in the fourth quarter compared to a net loss of $18.6 million in the fourth quarter of fiscal year 2000.
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