Cell Researcher Geron Says 3rd-Quarter Loss Widened
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Geron Corp., the biotechnology company whose stock soared a week ago on reports of a major breakthrough in human cell reproduction, said its losses widened slightly in the third quarter to $2.8 million, or 25 cents a share, from $2 million, or 18 cents, a year ago.
The Menlo Park, Calif.-based company said its revenue dropped 31.8% to $1.5 million, mainly because of an agreed-upon reduction in research funding from Kyowa Hakko Kogyo Co.
Geron’s stock rocketed to $19.06 on Nov. 6 after briefly touching an all-time high of $24.50. The surge was sparked by news that the company had financed university research that had produced “immortal” human cells that could lead to advances in organ transplants, gene therapy and other fields.
It was the second significant research announcement of the year from Geron. In January, the then-relatively unknown company said it had been able to reverse the aging process in certain cells.
Geron’s shares lost $1.44 to close at $11.94 on Nasdaq.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Intervisual Books Inc. said it lost $293,821, or 6 cents a share, in the third quarter, contrasted with net income of $565,891, or 11 cents, a year ago. Sales plunged 58.7% to $3.59 million from a record $8.69 million a year ago. The Santa Monica-based company said it had anticipated weaker sales because of the Asian crisis and the strong dollar but did not expect such a strong drop. Norm Sheinman, IBI’s president, said executives were advised to voluntarily reduce their salaries by 10% and to be ready for another cut if sales and profit objectives are not met during the first six months of 1999. The company said that by year’s end, it will have instituted a salary and hiring freeze and a staff reduction of 20%.
* Montgomery Ward Holding Corp., operator of the nation’s seventh-largest department store chain, said its fiscal third-quarter losses narrowed to $462 million from $615 million a year ago, as it spent less on restructuring its business and cut costs. The results included pretax reorganization costs of $21 million for the period ended Oct. 3 and $582 million a year earlier, according to a regulatory filing. The results were not audited. The company, which is operating under U.S. Bankruptcy Court protection, said revenue declined 12% to $1.02 billion, but sales at stores open at least a year rose 3%.
* Waste Management Inc., the largest U.S. trash disposal company, said third-quarter earnings rose 87% to $291.3 million, or 49 cents a share, in line with forecasts, as it realized savings from its merger with USA Waste Services Inc. Sales rose 2% to $3.16 billion. USA Waste Services acquired Waste Management in July and adopted the Waste Management name. The quarterly results were restated to reflect the acquisition.
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