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MPC Reports '06 Results

NAMPA, Idaho -- MPC Corporation (AMEX:MPZ) today announced financial results for the year ended on December 31, 2006.

Net revenue was $285.0 million with a net loss of $58.7 million, or ($4.93) per basic and diluted share. This loss includes the following non- cash

  1. $19.5 million for impairment of acquired intangibles
  2. $10.5 million for debt extinguishment
  3. $6.4 million for depreciation and amortization
  4. $4.3 million for change in estimated fair value of derivative financial
  5. $1.2 million for merger-related stock compensation expense

For the previous year ended December 31, 2005, net revenue was $187.5 million with a net loss of $16.7 million or ($3.05) per basic and diluted share. The results of MPC Computers were consolidated effective July 25, 2005, the date that the acquisition by MPC Corporation (formerly called HyperSpace Communications, Inc.) became effective. Therefore, the results of MPC Computers prior to July 25, 2005 were not included in the results for the year ended December 31, 2005.

"During 2006, we made progress with both recapitalizing and restructuring MPC Computers," said John P. Yeros, Chairman and CEO of HyperSpace Communications, Inc. "During late 2005 and all of 2006, we raised over $27 million to recapitalize the business. In addition, we entered into a new banking relationship with Wells Fargo Business, Inc. that has also improved our cash availability. Furthermore, we eliminated over $10 million in operating expense during 2006 as a result of lower R&D expenses, lower overhead expenses and reduced sales commissions due to lower overall sales.
We believe the company is making progress toward improved results in 2007."

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