By Phil Boeyen, ShareChat Business News Editor
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Friday 22nd February 2002 |
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The news comes as part of continuing restructuring under the company's recently appointed management duo, David McKee Wright and Maurice Bryham.
The company announced on Friday that it has written down the value of its investment portfolio to "recognize the reality of valuations for its early stage investee companies in the current investment climate". The only investment that has not been written down is Deep Video Imaging.
"The write down of current investments is in line with the policy of IT Capital to account for its investments at the lower of cost or board's valuation," says ITC.
"Investments are written down by the board when market valuations change or the performance of the portfolio companies deteriorate."
The troubled tech company reports it is now forecasting a total loss for the year to the end of March 2002 of $20 million.
That figures comprises the write downs of $9.715 million plus equity accounted operating losses from investee companies, its own operating losses and restructuring provisions.
"As part of re-structuring, the company also announced today that it was closing its Sydney office at the end of this month. This follows the closure of its office in Philadelphia at the end of last year."
IT Capital has already announced a loss of $5.95 million in the first half.
In a statement last month the company said that Virtual Spectator, Deep Video Imaging and Golden Orb remain in a high monthly cash burn mode and were unlikely to break even in the short-term.
However it said Terabyte was performing at or close to break even point and should be able to start delivering profit by the end of the year.
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