Albany Molecular Shares Fall On 1Q Profit, Outlook
The company said a slowdown in research and development spending is cutting into customer demand, and that it could remain depressed for small biotechnology companies and specialty pharmaceutical companies.
Looking ahead, the company cut its full-year profit forecast to between 22 cents and 28 cents per share, from prior guidance of 40 cents to 46 cents per share. The company also trimmed its contract revenue outlook to between $37 million and $41 million, from a prior range of $40 million to $42 million.
"Our revised financial guidance reflects a slowed spending by our small biotech and specialty pharmaceutical customers, as well as the impact of the delay of several projects previously forecast for our large scale component during the remaining quarters," said Chairman, President, and Chief Executive Thomas D'Ambra, in a statement.
He said the company initiated a "cost containment" program to offset the drop in revenue.For the second quarter, the company projected a loss of 1 cent per share to a profit of 2 cents per share.
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