NEW YORK, Oct 26 - Rosetta Inpharmatics reported greater-than-expected third quarter 2000 losses Thursday, falling 12 cents per share short of Wall Street’s predictions.
For the third quarter of 2000, the company reported a net loss of $8.4 million, or 40 cents per diluted share, compared to a net loss of $5.0 million, or $1.11 per share for the year-ago period.
Wall Street had expected the company to post losses of 28 cents per share, according to a poll of 3 brokers conducted by First Call/Thomson Financial.
Rosetta’s revenues, however, increased sharply to $3.0 million, from revenues of $119,000 for the third quarter of 1999. The company’s operating expenses also more than doubled, to $13.1 million, compared to $5.1 million for the third quarter of last year.
These quarterly losses follow Rosetta’s August 7 Initial Public Offering on the Nasdaq.
The company attributed its revenue surge to Rosetta’s agreements with Agilent Technologies. Agilent and Rosetta signed a joint three-year $75 million deal in December 1999 licensing Agilent to distribute Rosetta’s Rosetta Resolver Expression Data Analysis System. Rosetta has sold several units of its Resolver system though these channels this quarter." The successful completion of our IPO coupled with orders for the Rosetta Resolver System from a leading pharmaceutical company, a top tier biotech company, as well as a prestigious academic center were key accomplishments during the third quarter," said Stephen Friend, Rosetta’s President and CEO. " We are executing our business model and believe we are well positioned to meet the needs of life science customers generating vast amounts of DNA chip and gene expression data."