NEW YORK, Aug. 12 (GenomeWeb News) - Lion Bioscience today reported a decline in bioinformatics revenues for the quarter ended June 30, but a significant reduction in its total losses.
In its earnings report for the first quarter of its 2005/2006 fiscal year, Lion separated the financial results for its bioinformatics business, which it plans to sell by the end of the month, from its continuing operations, which it intends to maintain as a holding company following the sale of the bioinformatics business.
Including the bioinformatics business, which the company reported as discontinued operations, Lion posted total revenues of €1.75 million ($2.17 million) for the quarter, a 56 percent decline from €3.96 million in the year-ago period.
The bioinformatics group posted €1.36 million in revenues for the quarter, compared to €3.84 million in the prior-year period. Revenues for the company's continuing operations, which include royalties from its Cambridge, Mass.-based LBRI group, increased, however, to €392,000 from €125,000 in the year-ago quarter.
The company's total losses for the period fell to €53,000 from €2.62 million in the same period of 2004.
The bioinformatics group's quarterly loss was €49,000, compared to €1.7 million in the comparable period of 2004, while the loss for the company's continuing operations was €4,000, compared to €909,000 in the first quarter of 2004/2005.
Lion's total R&D expenses declined to €525,000 for the quarter, compared to €1.4 million in the prior-year period.
The company had cash and cash equivalents of €9.6 million as of June 30, and an additional €14.8 million in marketable securities.
"For the first time in Lion's history, we are close to a near-balanced result," said Peter Willinger, Lion's CFO, in a statement. "We are controlling our costs well and there is only a small need to use our cash reserves."
Willinger added that the company expects to announce the sale of its bioinformatics business "within the next few weeks."