Maxicare Shares Fall 16% on Quarterly Loss

Maxicare Health Plans Inc. stock fell 16% on Wednesday as the company reported a third-quarter loss after taking a $20-million charge to increase reserves for unexpected medical costs.

Maxicare stock fell $2.94 to close at $15.50 in Nasdaq trading.

The Los Angeles-based operator of health-care plans reported a loss of $18 million, or 96 cents a share, contrasted with net income of $5.03 million, or 27 cents, in the year-earlier period. The company was expected to post earnings of 27 cents a share, according to analysts.

Revenue for the quarter rose 22%, to $171.7 million from $140.8 million.

Excluding the charge, the company’s medical-loss ratio, or the percentage of revenue spent on health care, increased to 91.5% from 88.7% in the year-earlier period.

Membership in the company’s plans increased to 518,000 from 395,000 a year earlier.

At a Glance:

Thousand Oaks-based Amgen Inc. reported third-quarter earnings of $84 million, or 31 cents a share, excluding a one-time charge of 35 cents a share. A year ago, the company earned $179 million, or 64 cents a share.

Although the earnings exceeded analysts’ forecasts by 2 cents a share, the latest sales figures show Amgen shifted into a slow-growth mode. The company said sales of both Epogen, a red-blood-cell-boosting agent, and Neupogen, which does the same for white blood cells, rose just 4% in the quarter.

Northrop Grumman Corp.’s third-quarter net income rose 26%, less than expected, as gains at its commercial aircraft unit partly offset lower earnings from its military electronics and information systems businesses.

The maker of the B-2 bomber said net income rose to $98 million, or $1.46 a share, from $78 million, or $1.18, a year earlier. Per-share results fell short of the $1.61 average estimate of analysts.

Pacific Enterprises reported third-quarter net income of $37 million, including a charge of $6 million from the pending merger with San Diego-based Enova Corp., or 44 cents per share, compared with $48 million, or 57 cents, a year ago.

Imperial Bancorp of Los Angeles reported third-quarter net income of $14.9 million, or 54 cents per share, compared with $8.7 million, or 33 cents, a year ago.

Computer Sciences Corp. of El Segundo said fiscal second-quarter earnings rose 19% to $58.6 million, or 74 cents a share, up from $49.3 million, or 63 cents, before a charge a year ago.

99 Cents Only Stores reported third-quarter net income of $4.8 million, or 31 cents a share, compared with $3.6 million, or 24 cents, a year ago. The Commerce-based retailer also said it acquired a 48% stake in Universal International Inc., a buyer and seller of wholesale close-out merchandise, for $2 million in cash and $2 million in merchandise.

Carlsbad-based Callaway Golf Co. reported third-quarter net income of $37 million, or 52 cents per share, which includes a one-time charge, compared with $38.4 million, or 54 cents, a year ago.

20th Century Industries of Woodland Hills reported third-quarter net income of $33.2 million, or 46 cents a share, compared with $24.3 million, or 33 cents, a year earlier.

Read-Rite Corp., based in Milpitas, reported fiscal fourth-quarter profit that lagged expectations. Net income, before a write-down, fell to $28.6 million, or 58 cents a share, contrasted with a loss before charges of $36.9 million, or 79 cents, in the year-ago period.

3D Systems Corp. of Valencia reported a third-quarter net loss of $2.1 million, or 19 cents a share, including one-time charges, contrasted with net income of $1 million, or 9 cents, a year ago.

Borland International Inc., based in Scotts Valley, reported fiscal second-quarter profit of $1.5 million, or 3 cents per share, contrasted with a net loss of $14.3 million, or 40 cents, in the year-ago period.

Beverly Hills-based Western Atlas reported third-quarter income from continuing operations of $30.1 million, or 55 cents per share, compared with income from continuing operations of $26.1 million, or 48 cents, a year ago.

Xylan Corp. of Calabasas reported third-quarter net income of $4.6 million, or 10 cents a share, compared with $4.6 million, or 10 cents, a year ago.

Sumitomo Bank of California reported third-quarter net income of $9 million, or 45 cents per share, compared with $11 million, or 58 cents, a year ago.

Camarillo-based Vitesse Semiconductor Corp. reported fiscal fourth-quarter earnings of $10.1 million, or 26 cents per share, compared with $4.5 million, or 14 cents, a year ago.

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