Martek lost $2 million for quarter

June 06, 1995|By John E. Woodruff | John E. Woodruff,Sun Staff Writer

Martek Biosciences Corp., the Columbia-based firm that is developing food and health products from algae, lost $2.04 million, or 24 cents a share, in the quarter that ended April 30, the company reported yesterday.

By comparison, the company lost $1.56 million, or 19 cents a share, in the corresponding quarter a year ago.

The company attributed the higher loss to speed-ups in its drive to develop, license and market Formulaid, a proprietary nutritional additive used in infant formula.

The company acquired a fermentation facility in Winchester, Ky., during the quarter and is using the plant to produce the two key oils used in Formulaid and to increase the yield from production processes.

"The company continues to execute its business plan on time, and its Formulaid product continues to move steadily toward worldwide commercialization," said Chief Executive Officer Henry Linsert Jr.

Revenue for the quarter that ended April 30 was $686,000, a 55 percent increase over the $443,000 recorded in the comparable period in 1994.

The company attributed the increase primarily to a 21 percent increase in product sales and to rising revenue from research and development contracts and grants.

For the six months that ended April 30, the company recorded a loss of $4.26 million, or 51 cents a share, a 126 percent increase from the loss of $1.89 million, or 25 cents a share, posted in the same period of 1994.

Much of the difference consists of an anniversary license fee that was received in the first quarter of 1994 but, under terms of the contract, was not received in 1995, the company said. Revenue for the six-month period totaled $1.21 million, a drop of 40 percent from the comparable period a year ago. The license fee was also a factor in that decline.

Martek's shares ended at $11 yesterday, up 75 cents, in Nasdaq trading.

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