Adopting new accounting rules caused contrast agent developer Advanced Magnetics to post sharply lower results for the fourth quarter of 2000, the company said.
Revenues for the quarter (end-September 30) were $1.4 million, down from $3.4 million for the same period in fiscal 1999. There was a net loss of $1.3 million for the quarter, compared with a net profit of $1.3 million for the same period last year.
Revenues for the fiscal year were $4.1 million, compared to revenues of $7.4 million in fiscal 1999. And the fiscal-2000 column showed a net loss of $11.3 million, compared to a net loss of $4.4 million for fiscal 1999.
The higher net loss is attributable to the Cambridge, MA-based firm's adoption of new accounting rules in fiscal 2000. The new accounting methods affect the recognition of revenue under the firm's licensing agreements, including the licensing and marketing agreement with Princeton, NJ-based Cytogen.
In accordance with the rules, only $388,000 of $13.6 million in stock received from Cytogen can be recognized as revenue during the fourth fiscal quarter of 2000, with recognition of the remainder to be deferred, Advanced Magnetics said. On the advice of its accountant, the firm adopted the new accounting method a year before it will be required by the U.S. Securities and Exchange Commission.
By AuntMinnie.com staff writers
November 17, 2000
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