Overstock.com To Sell OTravel.com, Ups 2006 Loss Forecast
Overstock.com the online seller of excess inventory, on Wednesday said it entered a non-binding letter of intent to sell its OTravel.com travel unit to an unnamed third party, and that a resulting write-down will increase its 2006 net loss by $4.9 million.
The Salt Lake, City-based company said it is writing off about $4.5 million of goodwill for the unit, and taking $400,000 of other charges. It also reclassified the travel unit's assets and liabilities on its balance sheet as "held for sale."
As a result of the transaction, Overstock.com said its net loss for 2006 was $101.9 million, or $5.01 per share, compared with the loss of $97 million, or $4.77 per share, it reported on Feb. 5. Full-year revenue was $796.4 million, Overstock.com has said.