February 02, 1998
Greenstone Roberts Attributes Loss to Litigation Charge
Greenstone Roberts Advertising Inc. reported a net loss of $1.1 million for the fiscal year ended Oct. 31, compared with a net income of $53,828 for fiscal 1996. The company blamed the loss on a noncash charge taken to establish a provision for a loss on a litigation claim for $796,167, but the company also reported that revenues dropped 20.6 percent. Revenues for the year were $7.1 million, compared with $9 million for 1996. ìWe have taken this provision because while we are aggressively pursuing our claim and believe we will be successful on its merits, we are concerned about the financial viability of this past client,î chairman Ronald Greenstone said.