Cohr to Explore Sale, Posts Loss

Cohr Inc. said it lost $10.7 million, or $1.66 a basic share, in the third quarter, contrasted with net income of $1.3 million, or 23 cents, a year ago. Chatsworth-based Cohr also said it has retained Lehman Bros. to pursue a possible sale of the health-care outsourcing company. Cohr said it plans to restate the first two quarters of the current fiscal year and all of the prior fiscal year because certain equipment and software sales were prematurely recorded and certain liabilities were understated. Restated operating results for the first and second quarters of fiscal 1998 will reflect pretax charges of $200,000 and $5.7 million, respectively. Total charges relating to the year ended March 31, 1997, will be $4.1 million, before a tax benefit. As a result, net income for fiscal 1997 will be $2.4 million, rather than $4.8 million. Cohr had expected to record pretax charges of up to about $8 million in the latest nine months, but following a review by the board and outside auditors, the actual charge was $12.6 million, pretax. Cohr also named Daniel F. Clark chief financial officer, replacing Umesh Malhotra.