Lynx announced the non-binding agreement as it reported revenues of $1.7 million for the second quarter of this year, down drastically from $4.6 million for the second quarter of 2003.
Lynx's losses widened this year, with the company suffering a net loss of $3.6 million, or $.48 per share, for the quarter that ended
Research and development expenses were down this year, with the company spending $2.6 million during the three months up to
As of June 30, Lynx had cash, cash equivalents and short-term investments of $2.4 million, including $0.4 million of restricted cash, and total current assets of $4.2 million.
Under preliminary, non-binding terms of the stock-for-stock merger with Solexa, the companies agreed that Solexa shareholders would hold a majority interest of the combined company. Lynx has received a first loan advance of $750,000 under a loan agreement between the two parties.
Lynx said the decision to pursue a merger with Solexa was based in part on the desire to have a combined company to pursue further development of the "cluster technology" assets that were acquired from Swiss-based Manteia by Lynx and Solexa jointly in March.
"We believe that a combination of [Solexa and Lynx's] resources would allow for faster integration of the cluster technology, which in turn would enable us to expand our services offering and accelerate the development of MPSS [massively parallel signature sequencing]-based instrumentation," said Kevin Corcoran, Lynx's president and chief executive officer.
The companies are currently reviewing and discussing the proposed merger with the objecting of concluding a definitive, binding merger agreement in September. Lynx has engaged Seven Hills Partners LLC as its financial advisor in merger discussions.
Due to lower t
Complete details of Lynx's second quarter earnings report are available here.