Gene Logic Inc. reported yesterday that its fourth-quarter and year-end net loss likely will be higher than during the same period a year ago.
The Gaithersburg company also said it is in discussions with securities regulators concerning how to account for last-year's purchase of Oncormed Inc., and would issue final fourth-quarter and year-end results once that issue is resolved.
FOR THE RECORD - An article in Tuesday's Business section about Gene Logic Inc.'s preliminary fourth-quarter and year-end financial results incorrectly reported that the company had planned to amortize its entire purchase of Oncormed Inc. In fact, the company plans to amortize only a portion of the $39.1 million purchase, specifically $3.9 million in "good will." The Sun regrets the error.
Gene Logic said that for its fourth quarter, which ended Dec. 31, it booked a preliminary net loss of $3.1 million, or 16 cents a share, on revenue of $4.6 million. In the same period a year ago, the company had a net loss of $2.4 million, or 43 cents per share, and revenue of $1.3 million.
The gene research company said it had planned to account for its third-quarter acquisition of Oncormed, another gene research company in Gaithersburg, by amortizing its $35.2 million cost.
But Gene Logic said it was in discussions with the Securities and Exchange Commission about the proper way to account for the costs of assuming Oncormed's active research and development projects now that the SEC has issued a new interpretation of how such acquisitions should be booked.
For the year that ended Dec. 31, Gene Logic said it booked a preliminary net loss of $9.3 million, or 59 cents per share, on revenue of $13 million. For the same 12 months in 1997 the company booked a net loss of $7.2 million, or $3.97 per share, on revenue of $2 million.
Pub Date: 3/09/99