Cadmus writedown cuts $15m off inflated assets

A large goodwill writedown has led payment terminals company Cadmus Technology to report a loss of more than $18 million.

Cadmus slashed the value of its technology by $15.6 million for the year to June 30, following a trend among listed IT companies to re-evaluate the worth of intellectual property acquired at inflated prices during the tech boom.

The company, which sells eftpos terminals in New Zealand, Australia and Asia, had revenue for the year of $6.2 million, down from $7.5 million in the previous period.

The result included a $726,000 write-off in research and development expenses. Cadmus also spent $500,000 on raising fresh capital.

Newly appointed Cadmus chairman Keith Phillips said a review of non-cash items and aggressive writedowns would leave Cadmus in better shape for next year.

"The board has taken the view that the worldwide slump in the technology sector makes it no longer appropriate for the company to continue to carry on its books the value of goodwill and investments," he said.

Cadmus had international orders worth more than $7 million.