This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

VaxGen Delays Filing Again

VaxGen(VXGN) said Monday that it is examining its revenue recognition policy regarding certain government contracts for medical research and will delay filing its quarterly report with regulators for the second time in a week.

The company also said that if the policy is changed, it would have to restate earnings for the fourth quarter of 2002 and all of 2003.

The news sent the company's stock down 40 cents, or 2.4 %, to $15.96 in Monday trading.

The announcement follows the Brisbane, Calif.-based company's report last week that it was seeking a five-day delay in the filing of its first-quarter 10-Q 2004 financial report with the Securities and Exchange Commission because its new independent auditor needed more time to evaluate corporate records.

VaxGen said the revenue recognition policy for contracts with the National Institute of Allergy and Infectious Diseases (NIAID) has been discussed in investor conference calls since February 2003. The company, which is working on vaccines to combat anthrax and smallpox, recognizes NIAID contract revenue only after completing contract milestones. The company is examining whether it should recognize revenue from these and other similar contracts as it incurs costs related to these contracts.

Any restatement due to a change in revenue recognition policy "would accelerate the recognition of revenue, and would result in a material decrease in the net loss applicable to common stockholders and an increase in revenue for the combined periods," the company said Monday.

"The restatement would relate solely to VaxGen's revenue recognition policy and the treatment of related costs," the company said. "VaxGen believes there are no issues related to the validity of any invoices already submitted or paid; nor would there be any effect on the way VaxGen invoices the NIAID for work completed" under two existing contracts.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.72 -0.56%
FB $119.21 1.20%
GOOG $709.62 1.20%
TSLA $215.16 1.70%
YHOO $37.26 0.87%


Chart of I:DJI
DOW 17,731.66 +70.95 0.40%
S&P 500 2,057.21 +6.58 0.32%
NASDAQ 4,731.6190 +14.5250 0.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs