An impairment charge of about $20.7 million contributed to a more than three-times increase in loss for Dynamics reseller Alithya for the year ended March 31. Paul Raymond, CEO of the Montreal, Que.-based company said this week the impact of the COVID-19 virus caused executives to look at intangibles and good will, including the reduction in the value of American trade names.

Operating expenses of approximately $56.5 million, up 46 percent over a year ago, contributed to a loss of roughly $29.2 million. The increases stemmed from four acquisitions. Those include two bought during the year, Matricis Informatique in October; Travercent, in December, Alithya also owns the former Edgewater Fullscope, the Microsoft reselling business, and Ranzal, names which are retired. During the week's earnings webcast, Raymond noted a decline in the legacy Oracle business, which was under Ranzal, and in spending by some larger customers. Overall, he said, “The larger projects we were doing did not slow down.”  Alithya received government assistance in France and Canada, along with approximately a $4.6 million-forgivable loan under the Payroll Protection Program. The company shifted to delivering projects remotely and Raymond commented, “We have some customers who very much prefer the new approach.”

Last modified on Friday, 19 June 2020
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