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Exelixis Reports Decrease in Q2 Revenue Atop Widened Loss; June Lay Offs Played Role

NEW YORK, Aug. 6 (GenomeWeb News) - Exelixis yesterday reported a decrease in second-quarter revenue atop greater R&D spending and a significantly widened net loss.


Total receipts for the three months ended June 30 fell to $12.6 million from $13 million year over year. Exelixis blamed the fall-off on the end of a collaboration with Protein Design Labs, but said receipts were offset by milestone revenue from a drug target deal with Bristol-Myers Squibb.


R&D spending inched up to $34.4 million in the second quarter this year from $32.5 million one year ago.


Net loss swelled to $29.3 million, or $.41 per share, from $23.4 million, or $.39 per share, in the year-ago quarter. Exelixis said $1.7 million of the increase was due to "termination benefits" following a round of lay offs the company initiated in June. On June 30, the company laid off 62 people, or 11 percent of its workforce, mainly from R&D. Exelixis said it expects the cuts to save it "at least" $5 million for the balance of the year and $10 million in 2005 and "beyond."


Exelixis, based in South San Francisco, Calif., said it had around $170.3 million cash, equivalents, and short-term investments as of June 30.


The company said it expects revenue for the third quarter to be between $12 million and $11.5 million, and plans to end the year with $180 million in cash, equivalents, and short-term investments.


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