MWG, Minus Two Units, Posts 35-Percent Decline in Revenues for H1; Restructuring to Continue

NEW YORK, July 29 (GenomeWeb News) - MWG Biotech today reported a sharp downturn in revenues and a widening loss for the first half of 2005.

MWG Biotech also said it is still restructuring but did not provide details.

The company's revenues for the first six months totaled €11.4 million ($13.8 million), down 35 percent from €17.6 million ($21.4 million) during the same period in 2004. All of this year's revenues so far resulted from MWG's two remaining business units -- DNA/RNA synthesis and DNA sequencing -- which contributed €11.8 million to revenues during the same period last year. Earlier this year, MWG sold its ailing microarray and lab automation units.

The company's net loss was €17.4 million, more than twice the amount of last year's loss of €6.5 million ($7.9 million) during the same period. "This was due in particular to extraordinary depreciation on buildings, to adjustments of value on accounts receivable especially from the US subsidiary, and to the setting up of reserves for further restructuring measures," according to a company statement.

As of June 30, MWG had €6.6 million in liquid funds.

The restrucring "process must be carried through to the end in order to ensure a profitable and lasting future for the group as a whole," according to a company statement. MWG will hold an extraordinary shareholder meeting on Sept. 7.