WebMD’s Loss Widens From Deal Expenses
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WebMD Corp., which makes medical practice management software, said its third-quarter loss widened after the company wrote down the value of acquisitions by $3.83 billion. Revenue was below some analysts’ estimates.
The company had a loss of $4.62billion, or $12.86 a share, compared with $786.9 million, or $3.17, a year earlier. Revenue rose 10% to $167million.
WebMD, which spent more than $5 billion in less than two years to buy companies and form partnerships, has had $6.4 billion in acquisition-related losses this year alone. Revenue was less than the $173.7-million average estimate of analysts surveyed by Thomson Financial/First Call.
The company canceled a technology agreement with Microsoft Corp. because the companies couldn’t come to terms on an agreement announced in April. Under the pact, WebMD would have used Microsoft software in its systems that help doctors run their offices.
Excluding $3.83 billion in expenses for writing down the value of acquisitions, restructuring charges and deferred compensation, WebMD had a loss of $19.5million, or 5 cents a share.
WebMD shares rose 36 cents to $4.90 on Nasdaq. The company made the announcement after the markets closed.
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