NEW YORK, Nov. 11 (GenomeWeb News) - Orchid Biosciences reported a slight drop in revenues for the quarter ended Sept. 30, accompanied by shrinking R&D expenses and net losses.
The company's total quarterly revenues of $11.8 million were down from its third-quarter 2002 revenues of $13.3 million, which included $886,000 in revenues from the Life Sciences product business it sold in December 2002.
In a statement, Orchid said that "continued delays in the release of US federal National Institute of Justice funds to the states for forensic testing by private laboratories" had a negative impact on its third-quarter service revenues because "state and local governments have delayed issuing new contracts in anticipation of the expected new funding."
Despite the delay, Orchid is expecting total annual top-line revenues of approximately $50 million for 2003.
The company reported $552,000 in R&D expenses for the third quarter of 2003, down from $6.8 million in the year-ago period. Orchid attributed the drop in R&D spending to the divestiture of its SNP genotyping instrumentation business and the strategic realignment of the Orchid GeneShield business, "both of which were responsible for the majority of the research and development expenses in prior years," the company said in a statement.
Orchid's net losses also decreased year-over-year as a result of its restructuring, to $3.8 million for the third quarter of 2003 compared to $22.3 million in the third quarter of 2002.
As of Sept. 30, 2003, Orchid held cash and cash equivalents of $10.8 million.