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Molecular Devices Stock Plunges 19 Percent on Lackluster Drug-discovery Product Sales, Net Loss

NEW YORK, Oct. 29 (GenomeWeb News) - Investors continued to spank Molecular Devices today after the company posted a net loss and warned of the future of its drug-discovery product lines yesterday, even though it posted a 42-percent surge in total revenue.

 

Shares in the Sunnyvale, Calif.-based company were down nearly 19 percent, or $4.55, to $19.50 in mid-afternoon trading today. The stock fell to as low as $18.81 today.

 

Moelcular Devices yesterday reported a 42-percent increase in revenue for the three months ended Sept. 30, to $41.5 million from $29.3 million year over year. The company attributed the increase to "continued ... growth in our core MDC life sciences products due to the success of the SpectraMax M2 bench-top reader and Meta series of cellular imaging products," Joseph Keegan, president and CEO, said in a statement.

 

"However, a number of our drug discovery product lines, including Discovery-1, IonWorks and Analyst, did not meet our expectations for the quarter," he said. "As a result of this unanticipated weakness, we have become more cautious about the state of the overall market."

 

Molecular Devices spent 6.4 million on R&D, $1.8 million more than it spnt in the year-ago period, the company said.

 

Molecular Devices also said third-quarter net loss was $1.3 million, or $.07 per share, compared with a net income of $2.3 million, or $.15 per share, year over year. The company attributed the loss to costs associated with its acquisition of Axon for $68 million, which closed in March.

The company said it had around $19.4 million in cash and equivalents as of Sept. 30.

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