Advanced Magnetics restates FY 2001 results

Contrast media developer Advanced Magnetics is restating its fiscal 2001 results, the company announced yesterday. The restatement is due to changes in the way the Cambridge, MA, firm accounted for 1.5 million shares of Cytogen stock obtained in a license agreement.

The Cytogen shares' decline resulted in a net unrealized holding loss for Advanced Magnetics, which the company classified as "temporary declines" recorded in comprehensive income. On further review, however, the firm determined that the loss should have been assessed as an other-than-temporary decline and recorded as a loss in fiscal 2001.

Advanced Magnetics therefore restated its fiscal 2001 results to a loss of $3.8 million, including a noncash charge of $4.7 million for the decline in value of the Cytogen stock. Advanced Magnetics revised its statements for all periods to exclude interest, dividends, and net gains and losses on sales of securities from revenue, and to include all such amounts as "other income (expense)."

Advanced Magnetics yesterday also reported financial results for the first quarter of 2002 (end-December 31), with the firm posting revenue of $1.5 million, compared to $1.54 million for the previous year. Net income for the quarter was $376,000, compared to a net loss of $542,000 for the same period a year earlier.

By AuntMinnie.com staff writers
January 30, 2002

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