They didn't really have 1.6B in sales....they changed their accounting so they had to do an adjustment!
Basically they made more this quarter than they reported and they made less last quarter than they reported if you use the same accounting method.
The weird part is they didn't make this really clear, and by releasing it 30 minutes before the close no one most wouldn't have time to figure this out....either management is really incompetent or they wanted a drop....so someone gets to pick up shares on the cheap!
It's the timing of this 'adjustment' that I have a problem with. It looks like it was done to make a low ball go private deal seem more acceptable to shareholders. If not illegal, it's very slimy. Also, the inventory write down should have been left until year end and not done now...again...it's the timing I have a problem with.
How did they lose $250M? Multiply the 4500 worker's salaries that they are going to dump (say average of $50K each) and you get $225M. It's called overhead. And if they aren't producing sales, it's called loss.