Paradigm Genetics reported its 2002 financial results on Wednesday, and Chief Executive Officer Heinrich Gugger was up front in talking about a costly year.
“We have ‘taken the medicine’ we needed to take to reaccelerate the company, and now we are hitting the milestones we set for ourselves,” Gugger said in a statement. “I am fully confident in the team I have in place and am pleased with our execution on the strategy. I am greatly encouraged by our progress and look forward to sharing future successes with you.”
The “medicine” included a reorganization of Paradigm (Nasdaq: PDGM) following the ouster of its founder and CEO, John Ryals, last year. Paradigm also sold off its ParaGen business, which resulted in a $2.7 million loss.
For the year, revenues declined 30 percent, to $17.2 million, and the new loss increased 25 percent to $20.3 million, or 63 cents per share, as compared to 2001 figures.
Focusing on opportunities in healthcare, predictive toxicology and proprietary biomarker discovery now, Paradigm is positioned for growth, Gugger said. Gugger also pointed out that Paradigm is generating incremental revenue from its ag biotech business.
“We recognize that 2002 was an extremely difficult year for Paradigm and our shareholders as it was for the biotechnology industry as a whole,’H he added. “Despite these challenges, we have made significant tangible progress on the road to successful commercialization of our technology, which we believe will positively position Paradigm for the future.”
The company did report break-even on cash flow for the fourth quarter.