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AOL, SEC Reach Accord on Stating Charges

September 29, 1998|From Reuters

DULLES, Va. — America Online Inc., the No. 1 online service, on Monday said it reached an agreement with federal regulators over fiscal fourth-quarter charges related to recent acquisitions.

The Internet company said it took charges amounting to $88.2 million. The charges resulted in net income of $7.1 million, or 3 cents a share, compared with a loss of $11.8 million, or 6 cents, a year ago.

A month ago, AOL said its profit before the charges for the quarter ended June 30 was $57.3 million, or 23 cents a share. It didn't specify the charges at the time because of its talks with the Securities and Exchange Commission over how to account for the research and development operations of two companies it acquired.

AOL said it took a charge of $60.5 million for its acquisition of Mirabilis Ltd., and a $10-million charge for its purchase of NetChannel Inc. The company also took a $17.7-million charge for a legal settlement. AOL shares rose $2.38 to close at $117.13 on the New York Stock Exchange.

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