Advertisement

TELECOMMUNICATIONS

From Times Staff and Wire Reports

IDB Communications Reports Loss: The Culver City-based satellite communications firm said its net loss in the second quarter was $14.6 million, or 20 cents a share, which the company blamed partly on accounting changes. Revenue was $124.3 million. IDB, which has been embroiled in controversy since its accountants resigned in protest in May, said it has changed its accounting procedures for inbound international long-distance traffic at the suggestion of its new auditors. IDB had been criticized for booking revenue before it was received. The accounting change produced $4.2 million of the quarter’s pretax loss of $24.9 million, IDB said. It also said $20.4 million of the pretax loss was caused by onetime items, including “addition to sales credit and allowance for doubtful accounts.” LDDS Communications, which previously agreed to buy IDB in a stock swap, said the loss was expected and should not affect the merger plan.


Advertisement