NEW YORK, Nov. 2 (GenomeWeb News) - Shares in Genaissance came close to regaining the market share they lost late last month after the company lowered by 20 percent its year-end revenue expectations.
The stock was up 11.5 percent, or $.20, at $2.01 in late-afternoon trade on the Nasdaq exchange after sliding to $2.26 from $2.43 on Oct. 22 following the company's announcement on Oct. 21 that 2004 revenues would fall to between $20 million and $21 million. It was the first day that Genaissance's shares were up since the 7-day decline began.
Genaissance attributed the fall-off in revenue to a delay in certain anticipated contracts and samples associated with some of these contracts. "Our business is partly influenced by our customers' drug development timelines that can cause a delay in the timing of revenues," Kevin Rakin, Genaissance president and CEO, said in a statement on Oct. 21. "Overall, we believe we can grow our revenue in 2005 in excess of 20 percent over 2004."
Recurring operating expenses for the second half of the year will be similar to those in the first half, adjusting for the second-quarter acquisition of Lark and other non-recurring charges, Genaissance said.
The firm will announce its third-quarter earnings on Nov. 9.