Protein Design Labs Loss Widens on Charges

Excluding one-time items, the company's loss topped estimates.
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Protein Design Labs

(PDLI) - Get Report

said its second-quarter loss widened after factoring in a charge for acquired research and development and noncash costs related to the acquisition of Eos Biotechnology.

The company reported a loss of $42.6 million, or 46 cents a share, for the three months ended June 30, compared with a loss of $600,000, or 1 cent a share, for the same period a year ago. Excluding charges, Protein Design would have lost $4.6 million, or 5 cents a share, in the 2003 second quarter.

Total revenue rose 39% to $20.5 million from $14.8 million in the 2002 second quarter. The increase primarily reflects a 33% rise in royalties, which climbed to $17.9 million from $13.5 million a year ago.

For 2003, Protein Design projected that revenue will increase about 22% to 27% compared with total revenue of $46.4 million in 2002. The company expects capital spending in the range of $115 million to $120 million this year.

Protein Design currently expects a loss of $77 million to $82 million, or 82 cents to 88 cents a share, including noncash charges, for the year. Excluding charges, the company believes it will lose $38 million to $43 million, or 41 cents to 46 cents a share.

Analysts polled by Thomson First Call were looking for a loss of 6 cents in the second quarter, before items. Analysts expect a loss of 42 cents and a top line of $59.8 million for the full year.