Genetics Institute Inc. on Friday said it has revised its first-quarter earnings, reversing a $7.3 million charge against itsequity investment in NeoRx Corp.
As a result, the company said its net loss for the quarter wasreduced to $17.4 million, or $1.20 a share, instead of $24.7million as originally reported.
The change, which resulted from discussions with the Securitiesand Exchange Commission, involved the method used to reflectthe decline in the value of NeoRx stock that GI acquired in1987. GI financials now reflect the market value of the NeoRxstock in each reporting period.
The decision affects GILs consolidated financial statements for1988, 1989 and 1990. The 1988 loss is now $15 million ($1.08a share) vs. $11.2 million (81 cents) as originally reported; for1989 the loss was $31.8 million ($2.27) vs. $29.6 million($2.11); and the 1990 loss was $29.1 million ($2.04) vs. $27.5million ($1.93).
The Cambridge, Mass., company said the restatement does notaffect revenues or losses from operations in any period. GI'sstock (NASDAQ:GENI) on Friday closed at $32.75, up 50 cents.
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