Allen Green, SmartProsThe write off of impaired goodwill for a subsidiary coupled with a charge that reduced its deferred tax asset pushed educational specialist SmartPros to a loss of $1.9 million for the year ended December 31. That compared to net income of $154,125 for 2011. Meanwhile, revenue for the recently ended year dropped to $15.9 million, down 6.4 percent from nearly $17 million for the prior year.
The company recognized a charge of $568,000 for impaired goodwill related to its Skye Multimedia operations. It also saw a non-cash charge that reduced its deferred tax asset by $690,000. The company would still have lost money given the more than $1 million drop in revenue. However, CEO Allen Greene said the company had a positive fourth quarter. The press release announcing the annual results did not break out the figures for the final three months of 2012.

Green said the company plans a new application in the financial services area that has upside potential. In a prepared statement, he also noted that "We have also begun to see positive results through newly developed reseller programs. We will continue to pursue accretive acquisitions, drive top-line revenue opportunities and balance expenses with a focused eye on profitability and growth."

The company's provision for income taxes rose to $735,379, up from $44,614. Adjusted EBITDA for 2012 was $499,048, down from $1.4 million. Because of the EBITDA and its cash position, SmartPros increased its quarterly dividend by 20 percent to 15 cents per share. Green's statement cautioned that future dividends depend on results and "by our ongoing requirement for cash to make acquisitions, which remains our primary goal."

Last modified on Sunday, 02 June 2013
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