Tokos to Take $6-Million Charge Against Earnings : Restructuring: Santa Ana medical service provider’s stock falls on word of quarterly loss.
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SANTA ANA — Tokos Medical Corp., which laid off 300 employees nationwide during the second quarter, said Tuesday it will take a $6-million charge against earnings to cover costs of a restructuring designed to bring the company’s costs in line with its revenue.
Tokos’ stock fell by 87.5 cents to close at $7.875 a share in Tuesday’s NASDAQ trading after the company, based in Santa Ana, said it would report a “significant” operating loss and lower-than-anticipated revenue for the quarter. The loss, the company said, will be between $2.6 million and $3.1 million. For the second quarter of 1992, the company reported an operating profit of $4 million.
Revenue for the latest quarter, Tokos said, was off about 23% to $31 million, compared to $40.6 million for the same period a year earlier.
The company linked falling revenue to “a slowdown in physician prescriptions at the end of the first quarter which continued through April. . . . Prescriptions increased during May but slowed again in June.”
Following the layoffs, Tokos, which provides health-care services related to obstetrics and gynecology, has about 2,000 employees nationwide. Of those, about 10% are based in Orange County.
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