Gene Logic's loss widens, despite 54% rise in revenue

Black ink wasn't as bad as analysts had forecast

May 01, 2001|By Julie Bell | Julie Bell,SUN STAFF

Gene Logic Inc. said yesterday that its first-quarter loss widened despite a 54 percent increase in revenue as it spent heavily to expand its database offerings for scientific customers.

The Gaithersburg biological information company said it lost $10.6 million, or 40 cents a share, on revenue of $8.2 million for the three months that ended March 31. That compares with a loss of $6 million, or 25 cents a share, on revenue of $5.3 million in the first quarter of 2000.

This year's results include a noncash loss of $1.2 million, or 4 cents a share, stemming from Gene Logic's equity investment in NeuralStem Biopharmaceuticals Ltd., which posted a loss.

The results beat analysts' expectations that Gene Logic would lose 43 cents a share, according to the average estimate of two analysts surveyed by IBES International Inc.

Gene Logic sells its databases largely to drug and biotechnology companies who use them to search for new treatments for disease.

Gene Logic's information, for example, makes it possible for scientists to do searches that help determine what genes may be "turned on" in certain diseases.

The company's operating expenses grew to $20.9 million from $12.2 million as it expanded the contents of its databases and tools used to search them.

It now has 16 major customers for its GenExpress Suite of databases.

Shares of Gene Logic rose 5 cents to $18.10 yesterday.

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