NEW YORK, Feb. 4 (GenomeWeb News) - Lion Bioscience yesterday reported preliminary earnings for the third quarter of its current fiscal year, which ended Dec. 31. The results reflect a change in its revenue accounting practice.
The company expects revenues of €6 million ($7.5 million) for the quarter, down from €8.5 million the year before. Its net loss is expected to be €6.1 million, down from €22 million for the same period last year.
As of Dec. 31, Lion had cash, cash equivalents, and marketable securities of €48.1 million.
Under its new accounting practice, Lion will recognize revenue from software licenses ratably over the term of the contract, rather than upon delivery of the software. Lion is planning to restate its result for prior fiscal years accordingly.
As a result of the change, the company expects to see increased revenues for the current fiscal year, and reduced revenues for prior years. Lion plans to issue its nine-month report for the current fiscal year at the end of the month.
The company said it no longer expects to reach its goal of break-even this quarter. Its guidance for the next fiscal year will rely on whether or not Bayer will extend its collaboration with Lion, scheduled to end this summer. "The on-going slump in the life science informatics market, the weak U.S. dollar as well as a slower than anticipated market introduction of new products, continue to have an adverse effect on Lion's business," Lion stated.