NEW YORK, Sept. 28 - Genomic Solutions said on Friday that its third-quarter revenue might be half of what it originally expected, blaming shrinking orders and economic uncertainty in the wake of the attacks on the World Trade Center and the Pentagon on Sept. 11.
Genomic Solutions, in rough shape even before the attacks on the US, having on Sept. 7 announced that it would slash 25 percent of its workforce and restructure its business, said it would earn between $3.5 million to $3.7 million in revenue. The company had originally planned to earn between $7 million and $7.5 million in revenue for the quarter, according to projections it issued during the same period last year.
“Although the company carried strong sales momentum into early September, the events of September 11, and the corresponding economic uncertainty, led to a sharp decrease in orders,” Jeffrey Williams, Genomic Solutions’ president and CEO, said in a statement.
The company, based in Ann Arbor, Mich., said that it usually records an increase in orders toward the end of the quarter, which in this case falls on Sept. 30. But it explained that airport closures and restricted customer on-site product demonstrations, sales personnel visits, and product shipments conspired to dim that expectation.
“While our revenue for the quarter was below our expectations, we remain confident about our longer-term growth prospects and our ability to achieve profitability in early 2002,” Williams said.
Genomic Solutions said it plans to release full financial results for the quarter, as well as an update on its planned acquisition of Cartesian Technologies, on Nov. 1.
Genomic Solutions on Sept. 7 announced plans to buy privately held Cartesian in a cash and stock deal that it hopes will help buttress its foothold in the automation tools market.
Terms of the deal call for Genomic Solutions to issue 6.8 million shares of common stock, options to buy 449,319 shares of common stock and $2.5 million in cash.
“Enhanced revenue and cost reduction opportunities, plus the inherent product cross-selling opportunities, make this acquisition a timely, ideal fit for Genomic Solutions,” Williams had said.