I returned last week from what was the most upbeat optical networking conference (OFC/NFOEC) in five years.
Then Footnoted.org, a site devoted to extracting interesting nuggets from SEC filings decides to unearth memories from before the dark times… before the empire. I’ll just quote the post.
In memory of the tech wreck that occurred 6 years ago today when the NASDAQ closed at 5048 (intraday high of 5132), I would like to nominate JDS Uniphase (JDSU) as the poster boy of the era. Consider the following idiotic justification for writing off $40 billion of goodwill that was part of the footnotes of the 6/30/2001 10K:
â€œThe goodwill resulted from our acquiring strategic companies when valuations were high. However, while we purchased highly valued shares, we were also in effect exchanging our highly valued shares at the same time so that none of the transactions resulting in the creation of large goodwill amounts resulted from a corresponding outlay of our cash. Had these transactions been done at different times when valuations were lower with exactly the same share exchange ratios, the goodwill amounts would have been considerably smaller. However, waiting for lower valuations may have reduced their strategic value or otherwise have allowed competitors to buy these companies thereby, eliminating an opportunity to strengthen JDS Uniphase.â€
JDSU was $138 on 3/10/00 (adjusted for stock splits) and closed at $3.80 yesterday, almost triple its 52 week low of $1.32.
The above text is clearly the result of someone trying to explain something that simply made no sense. How about “It was a great party and we got carried away” instead.
Hat Tip to The Stalwart, who reads Footnoted.org and lots of other things so I don’t have to.