Lydall Inc. has thrown in the towel on a costly and time-consuming information-technology upgrade, a setback that cost the Manchester manufacturer a $1.8 million charge to fourth-quarter earnings, a regulatory filing shows.
Lydall’s board of directors last Thursday approved dropping the previous IT software and systems upgrade project in favor of an approach the company claims will take less time and money, according to its latest 8-K filing with the Securities and Exchange Commission.
The new effort to bolster its enterprise resource planning system will rely on upgrades to its existing planning system and some additional applications software and will be cheaper and shorter to finish, the filing said.
The $1.8 million charge to earnings for the three months ended Dec. 31, 2012 suggests that’s at least how much Lydall has invested in the abandoned project.
Lydall said in the filing it is taking the non-cash charge because the previous project costs “were deemed to have no future fair value.”
Lydall didn’t declare in the filing whether it had an IT adviser for the project, nor which hardware and software vendors were involved.
HartfordBusiness.com’s hails to the company Wednesday for comment weren’t immediately returned.
Lydall makes heat and sound insulation and automotive air- and oil-filter inserts and biomedical containers.
