Gene Logic pares 3rd-quarter loss to 27 cents a share

Predictions exceeded

Gaithersburg company's revenue increases 114%

October 30, 2001|By Julie Bell | Julie Bell,SUN STAFF

Gene Logic Inc. said yesterday that its third-quarter loss narrowed slightly as revenue grew 114 percent on the strength of new subscriptions to its databases of information on genes associated with disease.

The Gaithersburg-based company reported a net loss of $7.2 million, or 27 cents a share, on revenue of $11.5 million. That compares with a net loss of $7.8 million, or 30 cents a share, on revenue of $5.4 million in last year's third quarter.

Analysts had predicted a loss of 29 cents a share, according to the average estimate of five analysts surveyed by Thomson Financial/First Call.

"It's been our anticipation that we would probably see a slow third quarter, as we did last year, when we had no new customers lined up," Chairman and Chief Executive Officer Mark Gessler said yesterday in a conference call.

But the company extended its contract with New York-based Pfizer Inc., expanded its agreements with Brussels, Belgium-based UCB Pharma and signed up PsychoGenics Inc., a Hawthorne, N.Y.-based biotechnology company focused on neurological and behavioral disorders.

Terms of the deals were not disclosed, but subscriptions to Gene Logic's GeneExpress Suite of databases typically are for three years with annual fees ranging from $1.5 million to $4 million.

In the quarter, research and development costs rose to $14.5 million from nearly $12 million in the year-earlier period while selling, general and administrative costs remained roughly flat at $4.7 million. Gene Logic reported cash and cash equivalents of $192.9 million as of Sept. 30.

The company's shares lost 89 cents, or more than 6 percent, to $13.63 on the Nasdaq stock market yesterday.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.