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Deal Costs Impact Jazz Financial; Klaus Wins Software CEO of Year Award for Second Time
TECHNOLOGY
Ingram Micro Inc. warned it would have to take a charge to its earnings for the past few years if legislation was enacted last month in Brazil.
It was.
So here's what it means for the Santa Anabased technology products distributor: Ingram Micro is set to adjust first-quarter earnings to reflect a $33.3 million charge. Net income now could be $30 million to $37 million, down from an earlier projection of $63 million to $70 million.
Revenue won't be affected.
Brazil wants to recover taxes on software imports from 2002 to 2005. After Jan. 1, 2006, taxes are not assessable.
That's where the $33 million conies in.
Ingram Micro is appealing the taxes. Just in case, it'll be setting aside that much plus another $42 million or so to cover potential penalties.
According to Ingram Micro, the best information it had was that its software coming into Brazil wasn't taxable under the law at the time.
Political changes in Brazil since have muddied up the matter.
Last Jazz
Jazz Semiconductor Inc. posted its last financials as a free-standing company.
The Newport Beach chip plant operator was bought for $260 million last month by Acquicor Technology Inc. of Newport Beach,...