NEW YORK, Oct 24 - Genomic Solutions said Tuesday its third quarter net losses narrowed significantly, helping the company to beat Wall Street's expectations by five cents.
The company reported pro forma net losses of $869,000, or 3 cents per share, compared with a net loss of $3.9 million, or $1.31 per share in the year-earlier period, including a $1.2 million non-cash common stock warrant charge. Excluding that charge, third quarter 1999 losses were 92 cents per share.
Wall Street had expected the company to post losses of 8 cents per share, according to a poll of three brokers conducted by First Call/Thomson Financial.
Revenues for the quarter surged 59 percent to $5.0 million, compared with $3.2 million in the 1999 quarter, as the company sold more GeneTAC Biochips and Investigator Proteomic Systems. The company sold a total of 51 new systems the quarter, as well as 51 added during the second quarter and 39 during the first quarter of 2000.
" This is the eighth consecutive quarter of excellent top-line growth,” Jeffrey Williams, Genomic Solutions president and CEO, said in a statement. “Also, we are extremely pleased with our progress regarding operating income and EPS. We are confident that we remain on track to achieve profitability late next year."
For the quarter, the company reported $7 million in total expenses, a 32 percent increase compared to the third quarter of 1999, while operating expenses increased 41 percent to $4.5 million. These increased expenses included $3.0 million in selling, general and administrative expenses, and $1.5 million in research and development costs. The company also reported a gain of $484,000 from a sale of assets.
During the quarter, Genomic solutions discontinued production of its own mass spectrometry machines and shifted its focus to proteomics.
Last month the company opened a new proteomics center, which it plans to dedicate Thursday. The new 7,000 square foot center does in-house research and provides contract research services on a fee-for-service basis. It currently utilizes two Investigator Proteomic Systems, and mass spectrometers from Applied Biosystems, Micromass, and ThermoQuest.
Earlier this month the company announced it had sold its MALDI-TOF mass spec and intellectual property to Thermo Electron, and that Thermo Electron had agreed to integrate the Investigator Proteomic System into their mass spectrometers.
The company also added a new feature, Protein Warehouse, to its Investigator Proteomic System this quarter. This feature is able to integrate all current Investigator component data from the company's individual proteomics instruments, including its 2-D electrophoresis system, gel processor, automated stainer, image acquisition system, ProPic fluorescent automated protein spot excision robot, ProGest digestion station, and ProMS MALDI preparation station.