BURLINGTON, Mass.-Lightbridge Inc. announced it changed the accounting for its acquisition
of Coral Systems Inc. in November 1997. The restatement results in an increase in net income for the fourth quarter
1997 of approximately $11.6 million, or 76 cents per share.
In the first through the fourth quarter of 1998, the
restatement results in a net income decrease of approximately $800,000, $400,000, $400,000 and $7.8 million,
respectively, said Lightbridge.
Also, as part of the restatement, the company said as of Dec. 31, it wrote off
approximately $7.4 million of intangible assets. The write-off included $2.6 million, based on the abandonment of its
ChurnAlert product, and an additional $4.8 million of goodwill, based on a determination that the net book value of this
asset was impaired.
The change in accounting resulted from discussions between Lightbridge and the Securities and
Exchange Commission, said the company.
