Advertisement
YOU ARE HERE: LAT HomeCollections

Tokos Reports Loss but Stock Keeps Rising

May 07, 1993|ANNE MICHAUD | TIMES STAFF WRITER

SANTA ANA — Tokos Medical Corp., which has seen its stock rise nearly 50% this week, announced Thursday that it lost $336,000 in the first quarter.

News of the loss, which the company had earlier warned investors about, may have slowed the stock's rise. The medical device company's shares rose 12.5 cents Thursday, to close at $8.875.

"The street was not dissuaded by the news" about earnings, said Tom Gavin, a Tokos spokesman.

The stock's gain, Tokos said, was related to a University of Mississippi study released this week endorsing the use of home uterine monitors to delay premature births. Tokos makes such monitors and provides nursing care.

Tokos' shares have sold for as much as $34.50 within the last year.

During the first quarter of this year, the company said, it lost $336,000, or 2 cents per share, contrasted with earnings of $2.2 million, or 12 cents per share, in the comparable period a year earlier.

Revenue decreased 7% in the quarter to $34.8 million, compared to $37.3 million in the first quarter of 1992.

The company said it does not expect to be profitable again until the third quarter.

"We have experienced a decrease in our (number of patients), as well as price erosion," said Robert F. Byrnes, chairman and chief executive officer, in a written statement. "We have continued to see a softness in patient referrals during April. As a result, we now anticipate that net revenue for the second quarter will be below the first quarter of this year, resulting in successive quarterly losses."

He said the company is cutting costs to improve its financial picture.

Advertisement
Los Angeles Times Articles
|
|
|