This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

GRAVITY May Record Impairment Charges In Fourth Quarter Of 2012

SEOUL, South Korea, Feb. 13, 2013 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. (Nasdaq:GRVY) ("Gravity" or the "Company"), an online game developer and publisher based in South Korea, today announced that the Company may record potential impairment charges on intangible assets and goodwill amounting to approximately KRW 12,117 million (US$ 11,059 thousand), and the Company is still in the process of conducting its impairment testing for certain intangible assets.

The potential impairment charges may consist of approximately KRW 8,503 million (US$ 7,761 thousand) related to an impairment loss on intangible assets for East Road, an online game under development by Gravity Games Corporation ("Gravity Games"), and approximately KRW 3,614 million (US$ 3,298 thousand) related to a goodwill impairment charge of Gravity Games. The impairment charges will have no cash flow effect.

The recognition of potential impairment charges is because it is highly likely that Gravity Games, a 50.83%-owned subsidiary of the Company, will discontinue its development of East Road due to its lack of funds for developing the game. Gravity Games intends to focus its limited resources on research and development efforts and improvement of customer services with respect to Dragonica, an online game developed by Gravity Games and commercially offered in 40 countries and markets.

In the event that the Company finally recognizes the impairment charges, they will be reflected in the Company's financial statements for the fiscal quarter ended December 31, 2012.

A condensed version of the financial statements of the Company for the year ended December 31, 2012 including recognition of the impairment charges, if any, prepared in accordance with Accounting Standards for Non-Public Entities in Korea ("KAS-NPE") will be included in the public notice for convocation of the annual general meeting of shareholders to be furnished on Form 6-K on February 27, 2013. The Company's full financial statements for the year ended December 31, 2012, prepared in accordance with KAS-NPE will be reported at the annual general meeting of shareholders to be held on March 27, 2013 and an English translation version of the business reports including the financial statements will be furnished on Form 6-K on the same date. The Company expects to file its annual report and consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States on Form 20-F on April 26, 2013.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs