ABI Profits Down In Sluggish Quarter
Applied Biosystems of Foster City, Calif., reported smaller profits and virtually no growth of business for its third quarter in fiscal year 2003, which ended March 31.
Revenues were $409.4 million, slightly up from the $409 million obtained in the same quarter last year. Of this amount, revenues from instrument sales accounted for $199 million, compared to $201.3 million a year ago. Revenues from sales of consumables was down to $143.8 million, from $149.1 million during the same period last year. Revenues from other sources, such as service contracts and royalties, grew to $66 million from $58.6 million in the same quarter last year.
Net income fell to $40.1 million from $49.1 million last year, while expenditures for research, development, and engineering grew to $60 million from $56.6 million for the prior year quarter.
“The uncertainties that have characterized the global business environment for several quarters increased in the third fiscal quarter,” commented Applera CEO Tony White in a statement, adding that business was negatively affected by constraints on spending in the US, Europe, and Japan by government laboratories and academic researchers, as well as by continued caution among companies.
Michael Hunkapiller, ABI’s president, pointed out that during the last quarter, “mass spectrometry was again an area of growth for Applied Biosystems as pharmaceutical customers continued to invest in leading technologies related to clinical development.”
LSBC Reports Losses, Revenues under $1M
Large Scale Biology of Vacaville, Calif., reported smaller losses as well as incrementally improved revenues for the first quarter of 2003.
The company had revenues of $0.9 million, compared to $0.5 million for the first quarter of 2002. Its losses narrowed to $7.6 million from $9.5 million last year.
R&D costs decreased to $3.2 million from $6.3 million a year ago.
At the end of the quarter, LSBC had approximately $19.1 million in cash, cash equivalents, and marketable securities.
Serenex Collaborates with MolecularNature; Reports Losses, Few Revenues
Serenex of Durham, NC, said last week that it would screen plant-derived compounds for UK-based MolecularNature, using its chemoproteomic and proteome mining technologies.
Both companies plan to decide jointly on future drug development projects based on results from the screen, and will share any intellectual property and revenue arising from the collaboration.
Waters Sales Grow, Earnings Stay the Same
Waters said last week that its revenues for the first quarter of 2003 had grown, yet its earnings stayed the same, due to one-time charges.
The company had sales of $221 million for the quarter, up 10 percent from $200 million during the same period last year. Net income was up to $34 million from $30.5 million during the year-ago period.
“Overall our results reflect cautious spending by our pharmaceutical and life science customers and relatively stronger demand from our industrial customers,” Douglas Berthiaume, Waters’ chairman, president and CEO, said in a statement.
Unusual charges in the first quarter consisted of restructuring charges associated with the combination of the company’s field organizations, the divestiture of its inorganic mass spectrometry business, the acquisition of the rheometry product line from Rheometrics Scientific, and charges related to ongoing legal matters.
Luminex Reports Revenue Rise, Smaller Loss
Luminex of Austin, Texas, reported increased revenues and a smaller loss for the first quarter of 2003.
Revenues for the company increased to $5.1 million, compared with $2.3 million during the first quarter of 2002.
Net loss for the first quarter was $906,000, compared to $6.6 million last year. This comparatively small loss was partially due to a $1.8 million lawsuit settlement that Luminex received.
The company spent $831,000 on R&D during the quarter, compared to $2.0 million last year.
As of March 31, the company had $39.5 million in cash and short-term investments.