Feeds

AOL sales drop by a quarter, reports billion dollar loss

'Getting healthier everyday'

SANS - Survey on application security programs

AOL blew another hole in its finances today after the internet veteran posted a massive quarterly loss, having swallowed a Q2 goodwill impairment charge related to its sell-off of Bebo.

Worse still, the company saw its advertising revenue plummet 27 per cent to $296.9m in the quarter ended 30 June. In the same period a year earlier AOL pulled in $407.2m.

Total revenues dropped 26 per cent to $584.1m during the quarter.

The company recorded a second quarter loss of $1.06bn, or $9.89 a share, compared with a profit of $90.7m or 86 cents a share in its 2009 Q2. AOL was also hit with a goodwill impairment charge of $1.4bn during the quarter.

“The underlying drivers of the impairment were a significant increase in net assets due principally to cash provided by continuing operations and a significant deferred tax asset associated with Bebo concurrent with a significant decline in AOL's stock price since April,” the firm sombrely noted.

AOL bought the dilapidated social networking site just two years ago for $850m.

Despite all that, the firm’s chairman and CEO Tim Armstrong insisted in a terse statement that AOL was "getting healthier every day".

He added: "Although we have much more significant goals for the future of AOL, we are pleased with this quarter's internal and external trends.” ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.