NEW YORK (GenomeWeb News) – Caliper Life Sciences reported after the close of the market on Monday that its third-quarter revenues fell 7 percent as its license fees and contract revenues took an expected sharp downturn year over year.
Caliper also said that it completed the sale of two non-core businesses for close to $21 million.
The Hopkinton, Mass.-based firm generated total revenues of $34 million for the three-month period ended Sept. 30, compared to revenues of $36.7 million for the third quarter of 2007. Caliper’s product revenue increased to $20 million from $18.5 million, and service revenue rose slightly to $10.6 million from $10.2 million.
Caliper’s license fees and contract revenues dropped to $3.5 million from $8 million — a decline that the firm had previously predicted. “As we discussed a year and a half ago, we expected that in 2008 that the licensing revenue for microfluidics would come to an end,” Caliper President and CEO Kevin Hrusovsky said during the firm’s conference call last night.
Caliper’s net loss more than doubled year over year to $5.4 million, or $.11 per share, from $2.4 million, or $.05 per share.
Its R&D costs decreased 12 percent to $5 million from $5.7 million, while its SG&A spending fell 23 percent to $10.3 million from $13.4 million.
Caliper also said that it completed the previously announced sale of its pharmaceutical development and quality analysis product line to Sotax for $15.8 million. It also announced that it sold its AutoTrace water testing sample prep product line to Dionex for around $5 million.
“Caliper’s strategic transformation to higher growth, higher profit product lines continues to progress,” Hrusovsky said in a statement. “We have divested two product lines, sharpened our focus, consolidated operations, reduced costs, and strengthened our balance sheet.”
Hrusovsky said during the call that the firm would continue to look to shed non-core businesses, as it focuses on its core imaging, microfluidics, and discovery services businesses.
He said the firm is working on developing a sample prep instrument for next-generation sequencing. “We think this is going to rapidly expand our market,” he said.
Hrusovsky also noted that the firm has “conceptualized a handheld, point-of-care diagnostics instrument. We think it’s game-changing technology, and we have already begun to introduce that to partners.”
He said during the call that Caliper hopes to roll out the sequencing sample prep product in 2010, while the diagnostics instrument is “three to four years out.”
Caliper finished the quarter with $8.9 million in cash, cash equivalents, and marketable securities. However, Hrusovsky noted during the call that around $18 million was wired into Caliper’s bank account on Thursday for the divested businesses.
Hrusovsky said the firm estimates it will have more than $30 million in cash as of Jan. 1. “We’ve stated unequivocally that we were going try to get through 2008 without needing to go to these troubled and impaired equity markets to raise cash,” he said. “You can see we’ve done this.”
The firm expects to report fourth-quarter revenues of $34 million to $37 million.