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Genomica Slashes 100 of 150 Jobs

NEW YORK, Oct. 4 - Bioinformatics company Genomica said Thursday it was eliminating 100 jobs, or 67 percent of its workforce, after determining that the company could not realize its original goals of delivering novel software tools to the genomics market.

"Our initial target market for third-party enterprise software is not developing fast enough to build stockholder value within a reasonable timeframe," Genomica CEO Teresa Ayers said in a statement.

She said that the Boulder-based company, which will have 50 employees after the layoffs, would now focus on combining its genetic analysis software with hardware.

"We're exploring a broad range of options to leverage new markets and distribution channels, while continuing to support all of our customers and meet our contract and partnership obligations," Ayers said.

The company said it now expects to reach near to cash flow breakeven through 2002. All charges related to the restructuring will be posted in the fourth quarter.

"With market adoption rates slower than expected, we are acting to protect our position in genetic analysis software and our very favorable cash position," said Ayers. "This move strengthens our financial situation, enhances Genomica's potential for strategic partnerships, and ensures our ability to continue supporting our customers while we evaluate further the many strategic alternatives currently available to us."

Genomica, which raised $122 million in an initial public offering last year, had $115.5 million in cash and cash equivalents at the end of June. The company had revenues of $464,000 for the second quarter of 2001.

Net losses for the period totaled $5.8 million, or 26 cents per share, compared to $7.1 million, or $5.30 per share, in the year ago period, missing Wall Street's estimates by 9 cents.

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