Tuesday's Early Winners & Losers

SGX Pharmaceuticals(SGXP Quote) plummeted more than 35% in after-hours trading Monday when the San Diego-based biotechnology company said it discontinued a late-stage clinical trial of Troxatyl as a third-line treatment for patients suffering from acute myelogenous leukemia. The safety monitoring board found the study response rates were unlikely to provide evidence of a treatment benefit as a third-line treatment for patients with AML. The recommendation to discontinue the clinical trial was not made due to safety concerns, the company said. Shares were sinking $1.65, or 35.87%, to $2.95.

Restoration Hardware(RSTO Quote) gained after the Corte Madera, Calif.-based home-goods retailer swung to a second-quarter profit. For the quarter ended July 29, Restoration Hardware recorded a profit of $236,000, or 1 cent a share, compared with a year-earlier loss of $2.5 million, or 7 cents a share. Analysts polled by Thomson First Call had an average estimate for a loss of 5 cents a share. The results included 2 cents a share in stock-option costs and a charge of 1 cent a share related to a review into the company's stock-option grants. Restoration Hardware said it completed a voluntary review of its option practices and found incorrect measurement dates, primarily during 2002 to 2004. The company attributed the incorrect accounting to "lapses in documentation and deficiencies in option plan administration controls." The errors resulted in the additional noncash compensation of $600,000, or 1 cent a share.

Second-quarter revenue increased 24% to $179.3 million, from $144.8 million, while same-store sales rose 4.3%. Wall Street expected sales of $171.2 million. For the third quarter, Restoration Hardware forecast a loss of 13 cents to 19 cents a share, compared with analysts' projection for a loss of 13 cents a share. The company anticipates 17% to 20% revenue growth, with a same-store sales rise in the mid-single-digits percentage. The retailer expects full-year revenue growth of 19% to 23%, narrowly higher than its May forecast of 18% to 22%. Shares were trading up 78 cents, or 12.70%, to $6.92.