The loss is more than three times greater than the firm's quarterly revenue total.
Innovaro Inc. lost $13.2 million in the recently concluded quarter, against revenues of $4.2 million. In fact, the Tampa firm's third quarter loss is greater than its year-to-date revenue total of $9.3 million.
The vast majority of Innovaro's most recent loss is attributable to an $11.6 million impairment charge. The charge indicates a decrease in the firm's goodwill, where goodwill represents the firm's intangible assets on its balance sheet (e.g., brand name value, intellectual property portfolio and customer base).
At the end of 2009, Innovaro listed $15.9 million in goodwill on its consolidated balance sheet. That total has now been reduced to roughly $6.4 million.
The company's decision to seek out an evaluation of its goodwill was triggered by the recent slide in the value of its stock, a release explained. Innovaro shares, which traded around $3.50 as recently as July, are now worth less than a dollar.
Innovaro bills itself as an “end-to-end solutions provider,” specializing in technology-fueled consulting services. Doug Schaedler resigned as CEO in August.