Borders Loss Widens Dramatically On Charges

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Bookseller Borders Group Inc. reported Tuesday that its loss widened significantly in its fiscal first quarter due to continued weak sales and more than $70 million in after-tax charges. But results still beat Wall Street expectations, sending shares up 11 percent in aftermarket trading.

The Ann Arbor, Mich.-based company reported a loss of $86 million, or $1.44 per share, for the quarter, which ended May 2. That compares with a loss of $31.7 million, or 53 cents per share, in the same period a year earlier.

Excluding $70.1 million, or $1.17 per share, in charges primarily because of a previously announced finance arrangement with Pershing Square Capital Management, the company lost 27 cents per share.

Borders' first-quarter revenue fell to $650.2 million from $735.8 million a year earlier.

The results topped expectations of analysts polled by Thomson Reuters, who on average expected the company to post a loss of 50 cents per share for the quarter on revenue of $637.3 million. Analyst expectations typically exclude one-time charges.