RESEARCH TRIANGLE PARK–Paradigm Genetics Inc. (Nasdaq:PDGM), reported a second quarter net loss of $3.6 million or 11 cents a share, compared with a net loss of $5 million or 16 cents a share in the same quarter last year, a 28 percent reduction.
At the same time, Paradigm said its total revenue for the quarter increased 27 percent to $5.6 million, compared with $4.4 million in the second quarter 2002. The company attributed the revenue increase to income recognized from its new National Institute of Environmental Health Services contract, a one-time deal, and the Advanced Technology program grant.
Decreases in revenue from Bayer CropSciences and Monsanto partially offset the increases. But the company reduced overall operating expenses to cut losses, to $9 million from $9.6 million in the same period last year. The company said it expects its need for new capital expenditures will remain at significantly lower levels than those of prior years.
The loss was in line with the company’s earlier guidance saying it would lose between 10 cents and 12 cents a share.
The $7.5 million refinancing with Silicon Valley Bank that closed in July (third quarter), enabled Paradigm to pay off its approximately $3 million equipment loan with Transamerica Technology Finance, provided the company with a $2.5 million in revolving credit, and increased its working capital by $3 million, the company said. The new financing is at significantly lower rates and reduces the company’s scheduled debt payments by $600,000 for the remainder of the year.
Paradigm uses a systems biology approach to understand gene function in terms of biological pathways. It develops assays and biomarkers for diagnostics tailored to its partners needs.