Comdisco Announces Fiscal 2008 Second Quarter Financial Results

2008-05-14 03:29:59 -

- Comdisco Holding Company, Inc. (OTCBB: CDCO) today reported financial results for its fiscal second quarter ended March 31, 2008. Comdisco emerged from Chapter 11 on August 12, 2002. Under its Plan of Reorganization, Comdisco's business purpose is limited to the orderly runoff or sale of its remaining assets.

Operating Results: For the three months ended March 31, 2008, the company reported net earnings of approximately $1.2 million or $0.29 per common share (basic and diluted). The per share results for Comdisco Holding Company, Inc. are based on approximately 4 million shares of common stock outstanding for the quarter ended March 31, 2008.

For the quarter ended March 31, 2008, total revenue increased by 36 percent to approximately $2.3 million from approximately $1.7 million for the quarter ended March 31, 2007. The increase is primarily the result of higher gains on the sale of equity securities in the current quarter. Gains were approximately $1.8 million for the current quarter compared to gains of approximately $67,000 for the quarter ended March 31, 2007.

Total assets increased $13.1 million to $77.4 million as of March 31, 2008 compared to $64.3 million at September 30, 2007. Comdisco adopted FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" ("FIN 48") effective October 1, 2007. The increase in total assets was primarily the result of adopting FIN 48 since the income tax benefit was previously recorded as a net receivable. Effective with the adoption, Comdisco has begun to report a gross income tax receivable along with a gross income tax liability. The $77.4 million of total assets as of March 31, 2008 included $54.0 million of unrestricted cash.

As a result of bankruptcy restructuring transactions, adoption of fresh-start reporting and multiple asset sales, Comdisco Holding Company, Inc.'s financial results are not comparable to those of its predecessor company, Comdisco, Inc. Please refer to the company's quarterly report on Form 10-Q filed on May 13, 2008 for complete financial statements and other important disclosures.

About Comdisco

Comdisco emerged from chapter 11 bankruptcy proceedings on August 12, 2002. The purpose of reorganized Comdisco is to sell, collect or otherwise reduce to money in an orderly manner the remaining assets of the corporation. Pursuant to Comdisco's plan of reorganization and restrictions contained in its certificate of incorporation, Comdisco is specifically prohibited from engaging in any business activities inconsistent with its limited business purpose. Accordingly, within the next few years, it is anticipated that Comdisco will have reduced all of its assets to cash and made distributions of all available cash to holders of its common stock and contingent distribution rights in the manner and priorities set forth in the Plan. At that point, the company will cease operations and no further distributions will be made. The company filed on August 12, 2004 a Certificate of Dissolution with the Secretary of State of the State of Delaware to formally extinguish Comdisco Holding Company, Inc.'s corporate existence with the State of Delaware except for the purpose of completing the wind-down contemplated by the Plan.

Safe Harbor

The foregoing contains forward-looking statements regarding Comdisco. They reflect the company's current views with respect to current events and financial performance, are subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied by such forward-looking statements. The company intends that such forward-looking statements be subject to the Safe Harbor created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words and phrases ''expect,'' ''estimate,'' and ''anticipate'' and similar expressions identify forward-looking statements. Certain factors that could cause actual results to differ materially from these forward-looking statements are listed from time to time in the company's SEC reports, including, but not limited to, the reports on Form 10-K for the fiscal year ended September 30, 2007 and Form 10-Q for the fiscal quarters ended December 31, 2007 and March 31, 2008 respectively. Comdisco disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Comdisco Holding Company, Inc.
Mary Moster
312-565-3900
mcmoster@comdisco.com