CGX Revenue Up, but Operating Loss Hits $55.5M
HOUSTON—Consolidated Graphics saw its revenue increase 9 percent to just under $316 million for the third quarter ending December 31, 2008, but the printer suffered a $55.5 million operating loss. The company recognized a pre-tax goodwill impairment charge of $62.5 million for the quarter.
CGX's operating income included a $17 million pre-tax litigation charge when a jury rendered a verdict against it for compensatory and punitive damages in a lawsuit involving a dispute between CGX and the former employer of an existing sales employee. The judge in this case may award additional damages; the plaintiff has requested an award of $3.2 million. The company plans to continue its defense of this matter at the trial court level and, if necessary, through appeals.