Gemstar Shares Hit by Latest ResultsGemstar-TV Guide...
Gemstar Shares Hit by Latest Results
Gemstar-TV Guide International Inc., the Pasadena-based publisher of TV Guide magazine, reported a wider net loss for the first quarter on costs related to a decline in asset values.
Shares of Gemstar fell as much as $1.14 to $8.60 after the results were released. They had closed up 32 cents at $9.74 on Nasdaq.
Gemstar posted a loss of $208million, or 50 cents a share, including a $297.8-million charge to write down goodwill in line with new accounting rules. That contrasts with a year-ago loss of $123.2million, or 30 cents.
Excluding the write-down and other one-time items, Gemstar had a profit of $102.1 million, or 23 cents a share, matching analysts’ average estimate.
Revenue fell 13% to $296.6 million, compared with the Multex average estimate of $301.4 million.
Analysts said Gemstar shares dropped because the company didn’t issue a profit forecast.
Bloomberg News
Beverly Enterprises
Under Criminal Probe
The state of California has notified Beverly Enterprises Inc. that it is investigating possible criminal charges against the company based on civil citations issued between 1998 and 2001 related to patient care.
In its quarterly report filed with the Securities and Exchange Commission, Beverly said it can’t immediately assess the nature or significance of any charges that might be filed.
The provider of nursing and assisted-living care services said it is holding discussions with the state to try to resolve the issues.
Most of the civil citations issued by the California Department of Health Services were resolved by the payment of civil penalties, Beverly said.
Shares of Beverly fell 27 cents to $8.04 on the Big Board.
Dow Jones/Associated Press
Unocal Announces
Gas Find off Vietnam
Unocal Corp. said it and three partners may spend up to $1.5 billion over 25 years to develop natural gas discoveries off Vietnam.
Unocal, state-owned PetroVietnam, Mitsui & Co. of Japan and PTT Exploration & Production of Thailand have drilled 10 successful wells in three fields with as much as 2.5trillion cubic feet of reserves that are either proven or likely to exist, the Los Angeles-based company said.
Development of the fields is dependent on construction of a 235-mile pipeline in southern Vietnam and the construction of several power plants, Unocal said. That, in turn, will depend on the expansion of Vietnam’s economy.
Vietnam expects power usage to rise 15% a year.
Unocal Vietnam President John Parmigiano said the company’s gas could also be exported to Thailand, Malaysia or Cambodia.
Unocal has a 42.4% stake in two blocks in its contracted exploration area, and a 43.4% stake in a third block.
Bloomberg News
Court Rules Roche Drug
Doesn’t Infringe Patent
Roche Holding, Europe’s fifth-largest drug maker, said a German court has ruled that its breast cancer medicine Herceptin does not infringe a Chiron Corp. patent.
Emeryville-based Chiron filed the lawsuit against Roche in February 2001, claiming the Swiss firm infringed a patent regarding mouse monoclonal antibodies. Herceptin was Roche’s sixth-best-selling drug last year with sales of $502 million.
Shares of Chiron rose 91 cents to $39.50 on Nasdaq.
Bloomberg News
CalPERS Chief
Announces Retirement
Another official of the California Public Employees’ Retirement System is departing: James E. Burton, the pension fund’s chief executive, said he will leave this fall for a private-sector career.
Burton has been CEO of the $150-billion fund since 1994, and has worked in California state government for 27 years.
William Crist, president of CalPERS’ board, and Michael Flaherman, who heads the fund’s investment committee, also are expected to depart by year’s end.
A Times Staff Writer
