NEW YORK, April 5 (GenomeWeb News) - Shares in Ciphergen were down 27.24 percent, or $.67, at $1.79 in early-afternoon trading after the company said lackluster sales will cause first-quarter revenue to fall significantly short of earlier expectations.
The company now expects to generate between $6.3 million and $6.7 million in revenues - or about half its receipts during the same period last year. Earlier this year, Ciphergen projected first-quarter revenues of between $8 million and $9 million.
As GenomeWeb News reported this morning, the projected shortfall has prompted Ciphergen to restructure its sales program, including installing a new vice president of North American and European sales. The company also said it would boost its public relations effort.
"We are disappointed with our anticipated sales results for the first quarter," CEO Bill Rich said in a statement. He added that Ciphergen is "enthusiastic about the future growth of the company as we continue to address the emerging biomarker proteomics research, pharma and diagnostic markets."
Ciphergen said it will discuss company activities in a conference call on May 6, when it plans to release its first-quarter earnings.
Since Jan. 1, Ciphergen's shares have lost about 40 percent of their value, and the stock last night closed a penny above its 52-week low.
Ciphergen's announcement soon after a number of shareholders called for a no-confidence vote to oust top management.