NEW YORK, Oct. 27 (GenomeWeb News) - Shares in Third Wave Technologies were down 16.3 percent in early-afternoon trading as investors slammed the company despite beating top-line projections for the third quarter.
Third Wave's stock was trading down $1.30 at $6.70 on the Nasdaq exchange after nosediving to $5.97 in 30 minutes of heavy trading after the market opened.
Wall Street was unimpressed with the company's $1.1 million year-over-year revenue growth, which increased to $10.5 million, despite beating market expectations. Third Wave also raised its year-end revenue projections, saying it expects to post $43 million in receipts by the end of the year.
The company, which also said it plans to replace CFO David Nuti by the end of the month, spent $2.7 million on R&D expenses for the quarter, compared with $2.8 million last year.
Adam Chazan, who covers Third Wave for Pacific Growth Equities, attributed the stock tumble to the CFO change, as well as to other management changes the company announced today. He also said investors may have been spooked by Third Wave's 2004 revenue guidance, which he called "conservative."
Third Wave's net income totaled $24,000, representing no earnings per share, compared to a net loss of $1.4 million, or $.04 per diluted share, for the same period last year.
As of Sept. 30, Third Wave had $67.1 million in cash, cash equivalents, and short-term investments.