Oklahoma | 73-0728053 | |
(State or other jurisdiction of | (IRS Employer | |
incorporation) | Identification No.) |
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
At OI, we have been reducing the risk in our investment portfolio for some time and accelerated this process during the second fiscal quarter. Because of extreme market volatility over the past few weeks, we decided to liquidate all of our remaining preferred stock and bond holdings. Liquidation of these holdings resulted in a loss of approximately $750,000 that we will recognize in two approximately equal amounts over our second and third fiscal quarters. This loss is in addition to the $353,000 impairment on certain preferred stock holdings we recorded in the fourth quarter of 2007.
Despite this loss, we continue to maintain significant cash holdings and have no bank debt. Liquidating these holdings will enable us to focus on product development and operating activities going forward. We expect to file our second quarter earnings information in a timely manner and anticipate improved sales and operating earnings in comparison to last year's second fiscal quarter results.
O.I. CORPORATION | ||||||||
Date: July 18, 2008 | By: | /s/ J. Bruce Lancaster | ||||||
J. Bruce Lancaster | ||||||||
Chief Executive Officer & Chief Financial Officer | ||||||||