NEW YORK, July 5 - Genomic Solutions said Thursday it expected its second-quarter revenues to be lower than it had initially forecast, because some customers had postponed their orders and because the economy is beginning to slow.
The company expects revenues for the quarter to total between $4.5 and $4.6 million, largely unchanged from the company's second-quarter 2000 revenues of $4.5 million.
At the end of the first quarter, Genomic Solutions, of Ann Arbor, Mich., projected that second-quarter revenues would surge 20 percent over the year-ago quarter.
"While the company grew revenue during the quarter, multiple market factors, driven by the current economic climate, led to the unanticipated weakness in orders and lower than forecasted revenue." Genomic Solutions CEO Jeffrey Williams said in a statement. "The lower than expected growth is attributed, at least in part, to our customers postponing purchases until later this year."
During the quarter, Genomic Solutions introduced its ProPrep Protein Digestion and Mass Spec Preparation Station, GeneTAC UC-4 Microarray Analyzer, and pre-printed GeneMap arrays for human, mouse, and rat cytokines.
"We expect all of these new products to contribute to revenue growth in the third and fourth quarters of this year," said Williams. "In addition, our operating expenses remain in check, our pipeline of expected sales orders for the second half of the year is at a record level, and our distribution partner, PerkinElmer Life Sciences, is delivering strong and sustained growth in orders for our products."
Genomic Solutions earlier projected 40 to 50 percent revenue growth for the third and fourth quarter over 2000.
For the second quarter, the company expects its loss per share to total between 11 and 13 cents, in line with analysts' expectations of 12 cents per share, according to a poll of two brokers conducted by FirstCall/Thomson Financial.
The company has scheduled the official release of its second-quarter financial results for Tuesday, July 31, followed by a conference call at 11:00 a.m. Eastern Standard Time.