NEW YORK, Oct 30 – Gene Logic reported Monday a 25 percent increase in third quarter revenues to $5.3 million, compared with $4.2 million a year ago, as sales of subscriptions to its gene expression databases increased.
Revenues for the first nine months of the year totaled $16.8 million, compared with $13.5 million in the year ago period.
In the first 10 months of this year, Gene Logic said it had signed seven pharmaceutical and biotechnology companies for subscriptions to its GeneExpress Suite database. The company’s goal is to land another three subscribers by the end of year.
Gene Logic spent $12 million on research and development in the third quarter, compared with $7 million a year ago, while sales and marketing costs increased to $4.7 million from $2.3 million a year ago. Total expenses, excluding a recurring amortization charge, reached $16.7 million for the period, compared with $9.4 million in the year ago period, excluding the recurring charge.
The company had $231.4 million in cash and cash equivalents at the end of the quarter.
“During the third quarter, the continued investments in our sales and marketing efforts began to pay off,” Philip Rohrer, Jr., CFO of Gene Logic said in a statement.
“For the remainder of 2000 and into 2001 we look to continue to aggressively sign new users to the GeneExpress Suite as its extraordinary value and utility as a genomics information tool becomes more widely known, expand the breadth and depth of the content and functionality of the GeneExpress Suite, and sign additional strategic partnership opportunities where prudent," he said.
During the third quarter, Gene Logic announced a distribution agreement with Amersham Pharmacia Biotech’s Japanese subsidiary for the exclusive rights to market and sell all of Gene Logic’s products in Japan.
The company reported a net loss of $8.0 million, or 31 cents a share, compared with a net loss of $5.4 million, or 27cents per share, for the same period in 1999.
Wall Street expected the company to lose 34 cents per share, according to a survey of six analysts conducted by First Call/Thomson Financial.
Shares of Gene Logic were down 1 5/16, or 6 percent, at 20 5/8 at midday trading.