Lion Biosciences Reports Sharp Reductions in Revenues, Losses

NEW YORK, Aug. 1 - Lion Biosciences reported a sharp drop in revenues in its first quarter fiscal year 2004 earnings today year-over-year, amid an equally sharp drop in expenses and losses.

Lion took in €3.9 million ($4.4 million) as of June 30, compared to €7.3 million ($8.2 million) in the first quarter of fiscal year 2003. Its expenses were reduced by 68 percent, from €19.8 million in Q1 FY2003 to €9.2 million in Q1 FY2004. Net losses decreased from €16 million in the year ago period to €6.3 million.

The reduction in expenses and losses came mostly as a result of the restructuring that Lion completed this quarter, according to the company. Lion has laid off 161 employees since the current restructuring began at the beginning of the year. The company now has 314 employees. Further restructuring is planned for the second quarter, when Lion will close its site in Columbus, Ohioand transfer its resources to its sites in Cambridge, UKand Heidelberg, Germany. The company currently employs 40 people at its Columbussite.

Lion also credited the weak dollar both with its reduced revenues and its reduced expenses.

The company stated a goal to break even in the last quarter of the current fiscal year. Lion executives hopes to do this with the help of expected strong sales of the two new products it introduced during the last six months, the Lion DiscoveryCenter and Target Engine.

As of June 30, Lion had €65 million in cash and cash equivalents. Its cash burn was reduced from €20.2 million in the first quarter last year to €7.8 million in the quarter just completed.