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Done Deal: Genomic Solutions Ties Up Cartesian Acquisition

NEW YORK, Dec. 20 - Genomic Solutions said on Thursday that it has completed its cash-and-stock acquisition of Cartesian Technologies, a deal it says will bolster its high-throughput screening and "strengthen its position as a global provider of comprehensive DNA analysis and drug discovery solutions."

 

Jeffrey S. Williams, president and CEO of Genomic Solutions, said that Cartesian will rack up more than $12 million in revenue in 2002 "and make a strong, positive contribution to our net income."


Williams has said he expects his company to post between $30 million and $36 million in revenue next year and report earnings before interest, taxes, depreciation, and amortization between $800,000 and $2.8 million. The firm also said it expects earnings to break even during the first three months of the new year and break into the black three months after that.

 

It'll be welcome news to investors and customers. Last month, Genomic Solutions said its third-quarter 2001 revenues slipped 28 percent to $3.6 million, compared with $5 million in the year-ago period.

 

What's more, during the third quarter, the firm, which recently announced a massive restructuring plan, posted a net loss of $7.9 million, or 32 cents a share, compared with a loss of $869,000, or three cents a share, year over year.

 

"Our restructuring initiative to reduce operating expenses by 35 percent is proceeding as planned and is expected to be completed by the end of January 2002," Williams said in November when he reported Genomic Solutions' third-quarter earnings.

 

Over the past several months, Genomic Solutions has relocated a manufacturing facility based in Lansing, Mich., to a site near the company's headquarters in Ann Arbor, according to a spokeswoman. The relocation is expected to be completed by mid-January. Williams has said that step would help stem operating costs and preserve cash reserves, which totaled $18.6 million at the end of the third quarter, down from $40.2 million at the end of 2000. The acquisition of Cartesian, initially announced in September, is to nudge that process along, he added.

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