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As Expected, Celera's Q2 Revenues Drop 3 Percent

NEW YORK (GenomeWeb News) – Celera reported after the close of the market Thursday that its second-quarter revenues fell 3 percent, a decline that was expected after the firm released preliminary results two weeks ago and announced an immediate restructuring program.

Celera brought in total revenues of $41.4 million for the three-month period ended June 27, down from $42.7 million for the second quarter of 2008. The Alameda, Calif.-based molecular diagnostics firm said its lab services revenue was $25.2 million compared to $25.8 million the year before. Its product revenue grew to $9.7 million from $9.1 million year over year, and its corporate revenue declined to $6.5 million from $7.8 million due to lower royalty revenue from a licensee.

"We were disappointed to see revenues contract over the prior year quarter, and this shortfall combined with a write-down for bad debt at Berkeley HeartLab, translated into a substantial loss for the quarter," Kathy Ordoñez, CEO of Celera, said in a statement. "We have reacted swiftly to the downward trend in revenues by implementing cost saving measures in the mature parts of our business, which included the redeployment of resources at BHL to provide what we expect to be a more efficient delivery of disease management services."

Celera posted a net loss of $31.7 million, or $.39 per share, compared with a net loss of $104.1 million, or $1.30 per share, for Q2 2008. This year's second-quarter results include a pre-tax charge of $15.7 million for non-cash intangible asset impairment. Last year's Q2 results included a $98 million non-cash tax expense related to its split from Applera.

Its R&D spending for the quarter declined 21 percent to $7.4 million from $9.4 million, while its SG&A expenses increased 63 percent to $41.1 million from $25.2 million.

Celera finished the quarter with cash and short-term investments of $320 million.

The company expects full-year 2009 revenues of between $160 million and $170 million.

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