Real Reiterates Q4 Sales Forecast, $249M Impairment Cost

This is shaping up as the season of writeoffs. Yesterday came word that Seagate ( STX ) was writing off the value of its acquisition of Maxtor , and then some. Today comes word from RealNetworks ( RNWK ) that it will take its own sizeable charge . The company reiterated its forecast for sales in Q4 of $151 million to $153 million, but announced several mostly non-cash charges that threaten reported earnings and long-term profitability. The company will take a charge of $227 million to $249 million in the quarter, the bulk of which, $185 million to $200 million to write down the value of goodwill and intangibles. Only $4 million to $5 million of all that will be an actual cash expense in coming quarters, the company reported. As far as the impact, JP Morgan analyst Vasily Karasyov writes that the various charges will result in 14 cents per share downside to GAAP earnings for the quarter. Moreover, Karasyov points out that Real’s downloadable music joint venture with Viacom (VIA ), Rhapsody, ... (link)