Icoria Says Ag-Biz Sale Drove 60-Percent Revenue Jump in Q1; Foresees Headcount Reduction

NEW YORK, May 17 (GenomeWeb News) - Icoria yesterday said ths the sale of its agricultural genomics business helped drive a 60-percent increase in first-quarter revenues atop a net profit.

The company also reported that on May 7, 57 of its 179 employees joined Monsanto following the sale of the agricultural genomics business to the ag-bio giant. Icoria expects to reduce its headcount further, to approximately 110 employees, by the end of June.

Icoria's revenues for the quarter increased to $7.8 million from $4.9 million during the first quarter of 2004. Revenues from Icoria's healthcare business more than doubled compared to last year's first quarter, contributing $3.4 million to total revenues. The remaining revenues came from the ag-genomics sale.

"While we are very pleased with our first quarter 2005 revenues and the performance of our healthcare business, we must keep in mind that Icoria's future revenues will be lower as a result of the sale of our agriculture genomics assets to Monsanto and the previously announced termination of the Bayer contract," said interim CEO Doug Morton in a statement.

Research and development expenses increased to $7.4 million, up from $6.6 million during the same quarter in 2004.

Icoria's quarterly net income was $1.1 million, or $.03 per share, compared to a net loss of $3.7 million, or $.11 per share, during the year-ago period. This quarter's profit was due to a one-time gain of $3.9 million from the sale of its agricultural genomics assets.

As of March 31, Icoria had $11.8 million in cash, cash equivalents, and short-term investments.