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ADSX - - Applied Digital Solutions Reports 2002 Year End Financial Results; Net Operating Loss Decreases Significantly Compared to 2001 4/1/03
PALM BEACH, Fla., Apr 1, 2003 (BUSINESS WIRE) --
Applied Digital Solutions, Inc. (the 'Company') (Nasdaq:ADSX), an advanced technology development company, today released financial results for the year ended December 31, 2002. Included in the results was an asset impairment charge of $69.4 million. The 2002 asset impairment charge arose primarily from application of SFAS No. 142 Goodwill and Other Intangible Assets, adopted by the Company on January 1, 2002, which requires that goodwill and certain intangibles no longer be amortized but instead tested for impairment at least annually by applying fair value tests. An evaluation of Digital Angel Corporation's (AMEX: DOC) Wireless and Monitoring and Medical Systems reporting units indicated that $31.5 million and $30.7 million of goodwill, respectively, was impaired as of December 31, 2002. The Company is the beneficial owner of approximately 73.91% (19.6 million shares) of the outstanding Digital Angel Corporation shares.
Revenue from continuing operations in 2002 amounted to $99.6 million, a 36% decrease from the $156.3 million recorded in 2001. For the three-month period ended December 31, 2002, revenues from continuing operations of $21.6 million represented a decrease of 22% compared with the $27.7 million for the same three-month period in 2001.
For 2002, the Company incurred a loss from continuing operations of $113.9 million, or $0.42 per share, compared to a loss from continuing operations of $198.1 million, or $1.23 per share for 2001. For the three-months ended December 31, 2002, the Company reported a loss from continuing operations of $64.0 million, or $0.23 per share, compared to a loss from continuing operations of $48.0 million, or $0.18 per share for the three-months ended December 31, 2001.