Overstock to sell its OTravel business

[mandy]

Press release:

Overstock.com, Inc. (Nasdaq: OSTK) filed its Form 10-K today for the year ended December 31, 2006. This release is to explain the differences between the 2006 financial results reported in the Form 10-K and the preliminary unaudited 2006 financial results previously issued by press release on February 5, 2007.

The primary changes to the financial results and the related financial statements are the result of our decision to sell our travel subsidiary, OTravel.com. We have entered into a non-binding letter of intent to sell this business to a third-party. As a result, our year-end 2005 and 2006 balance sheets have been reclassified to show the travel subsidiary's assets and liabilities as "held for sale." In addition, on our income statement, the operations of the travel subsidiary (all revenue and expenses) have been removed from our results and reported below our net loss as "discontinued operations." As part of this process, we evaluated the goodwill related to the original purchase of our travel subsidiary and determined that it was subject to an impairment of approximately $4.5 million as of December 31, 2006. This, along with approximately $400,000 of other miscellaneous adjustments, increased our consolidated net loss attributable to common shares to $101.9 million, or $(5.01) per share from the previously reported $97.0 million loss, or $(4.77) per share.

Full details of the reclassification are available in Footnote 5 (page F-17) of the Consolidated Financial Statements in Form 10-K for the year ended December 31, 2006 that we filed with the SEC today.

full article: http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-newsArticle&ID=974079&highlight=