Cognicase Inc. posted fourth-quarter sales that rose 32 per cent Wednesday but the computer services company's profit took a hit on accounting charges.
Montreal-based Cognicase said sales in the three months ended Sept. 30 were $133-million, up sharply from $101-million in the year-earlier period.
For the quarter, the company posted a loss of $490-million or $6.04 a share, compared with $16-million or 44 cents a share.
Before goodwill impairment and amortization of goodwill, the software and computer outsourcing provider said it lost $11.7-million or 14 cents a share in the fourth quarter, compared with a loss of $8.6-million or 23 cents in the same period in 2001.
Cognicase said the fourth-quarter loss was hit by higher amortization expenses from amounts previously classified as goodwill and an adjustment to tax benefits previously accrued for operating losses in Europe.
Last year's fourth quarter included a pre-tax onetime charge of $18.4-million related to adjustments in the carrying value of long-term assets, the company said.
Losses in the Cognicase's European operations continued to weigh on results, the company added.
Cognicase has seen its stock drop sharply this year - partly on investor fears that the company will issue millions of new shares to finance recent acquisitions. In September, the company announced plans to buy back about 10 per cent of its common shares to offset downward pressure on its stock from those purchases.
On Wednesday, its shares tumbled 25 cents or 8.33 per cent to $2.75 on the Toronto Stock Exchange. They have a 52-week high of $11.15 and a low of $1.91.
For fiscal 2002, Cognicase posted a loss of $471-million or $7.07 a share, compared with $31-million or $1.03 a share.
Before goodwill impairment and amortization of goodwill, profit was $7-million or 11 cents a share in 2002, compared with a loss of $2-million or 7 cents a share in 2001.
Sales for fiscal 2002 improved to $513-million from $406-million.
Roma Luciw