NEW YORK, Sept. 18 – Genotyping company Orchid BioSciences has said it expects to meet previous third quarter estimates, including anticipated revenues of $25.5 million - $27.5 million for the period.
"We have met or exceeded our analysts' consensus forecasts for both revenues and earnings for the last four quarters, and we are very comfortable that we will do so again in the third quarter," Donald Marvin, Orchid’s chief operating officer and chief financial officer, said in a statement released after the close of trading Tuesday.
Orchid’s announcement came after a prominent stock analyst cut her rating for the company. Meirav Chovav of Credit Suisse First Boston reduced her rating for Orchid to a “hold” from a “buy,” citing concerns regarding the company’s cash position and revenue growth.
“Although the company believes it has adequate capital for at least the next 18 to 24 months, we expect spending to outpace revenue growth, and are cautious about the company's ability to raise additional capital given the uncertainties in the market,'' Chovav was reported by Reuters as saying.
In its statement, which followed Chovav’s report, Orchid reaffirmed that it had cash reserves that would keep the company going for the next 18 to 24 months. At the end of the second quarter, Orchid had $70.1 million in cash and cash equivalents, including the $35.7 million the company raised in a June private offering designed to shore up cash reserves.
The Princeton, NJ-based company also noted that it expects to see further revenue growth in the near term from the launch of new products and collaborative deals as it works to reduce its burn rate over the upcoming months.
The company said it planned to announce new product launches and collaborations over the next several weeks.
The company expects to post a pro forma loss per share, excluding non-cash items, of between $1.33 and $1.38 per share for 2001. Orchid is scheduled to announce its third quarter results on November 8.