Jabil Circuit took a whopping $317-million goodwill impairment charge in its first fiscal quarter, wiping away what would have been a $46-million profit.
The St. Petersburg electronics manufacturer wound up reporting a net loss of $275.9-million, or $1.34 a share, in the quarter ended Nov. 30, compared with net income of $62-million, or 30 cents, in the same period a year-ago. Revenues fell 6.7 percent, to $223.7-million, from $239.7-million.
Goodwill impairment reflects the declining fair-market value of an asset. In a regulatory filing Monday, Jabil said the goodwill charge reflected a number of factors, including a deteriorating global economic environment leading to a decline in customer demand, the ongoing credit crunch and the company's sharp drop in market capitalization.
Jabil's average stock price for the first quarter was down 77 percent from its fourth quarter average. Its shares closed Monday at $6.63, down 35 cents, or 5 percent.