This article has been updated to correct net losses per share in the fourth paragraph.
NEW YORK, July 25 - InforMax yesterday reported a 50 percent fall in total second-quarter revenue atop ballooning net losses and shrunken R&D spending as the company struggles for air in a bruising global bioinformatics market.
For the period ended June 30, the company posted $3.8 million in total revenue compared with $7.6 million for the same time last year. Leading the decline were software licenses, which sank to $2.9 million of total revenue in the current quarter from $6.6 million year over year, InforMax said.
R&D spending in the second quarter also took a hit, falling to $2.3 million from $2.6 million over the same period one year ago, the company said. Despite this reduction, InforMax said it has "achieved significant progress" with its new-product development and would be ready as early as the third quarter to begin launching new versions of existing software along with new platforms.
Net loss swelled to $6.5 million, or $.26 per share, from $3.9 million, or $.17 per share, in the second quarter 2001, the company reported.
InforMax said it had approximately $25.9 million in cash and cash equivalents as of June 30. By comparison, the company had $61.3 million at the end of the same period one year ago.
The company also revised its estimates for the remainder of the year, saying that it now expects revenue in the third quarter to reach between $4.0 million to $4.5 million. Meantime, full-year revenue should come in at between $18 million and $19 million, below its previous guidance of $20 million.
The beleaguered bioinformatics shop laid off 15 percent of its workforce in May as the company took what new CEO Andrew Whiteley described as "the necessary hard steps" to preserve the company's cash position and refocus its operations on its desktop application business.
The layoffs follow a 15 percent reduction in workforce at InforMax during the first quarter of 2002. The company's staff, 262 at the beginning of the year, was down to 189 in mid-May. The headcount reduction took place "across all functions" of the company, Whiteley told BioInform, GenomeWeb's sister publication, although sales and R&D staff associated with its GenoMax enterprise software made up the bulk of the layoffs, in line with the company's decision to pull back from the poorly selling product in favor of a new suite of applications targeted to systems biology and functional genomics.
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