Advertisement

Tokos to Take $6-Million Charge Against Earnings : Restructuring: Santa Ana medical service provider’s stock falls on word of quarterly loss.

Share
TIMES STAFF WRITER

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.

Advertisement

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.

Advertisement