Celera Losses Widen as Sales Triple
Celera Genomics, which last month made history by announcing it had finished a rough draft of the human genome, said fiscal fourth-quarter loss widened 25 percent despite a near tripling of sales for its genetic subscription business.
The company, which sells genetic data and related services to large drug makers, said its net loss in the three months ended June 30 rose to $24.9 million, or 43 cents a share, from $19.9 million, or 39 cents a share, a year earlier.
Analysts, on average, were forecasting a loss of 35 cents a share, according to First Call/Thomson Financial.
Revenues, meanwhile, rose to $15 million from $5.1 million, a year ago.
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Dow Chemical Earnings Up 26%
Dow Chemical Co. said second-quarter profits rose 29 percent despite higher raw materials costs. The Midland, Mich.-based chemical giant said net income climbed to $527 million, or 77 cents per diluted share, from $410 million, or 61 cents per diluted share a year ago.
The quarterly figures beat Wall Street’s average estimate of 74 cents a share, according to a survey of analysts by First Call/Thomson Financial.
Sales rose 22 percent to $5.63 billion from $4.62 billion, helped by a 13 percent jump in prices and a 9 percent increase in volume.
Dow, which is acquiring rival Union Carbide Corp. in a deal that will make it second only to DuPont Co. in worldwide sales, said it was helped in the quarter by its a diverse business mix, both in terms of products and geography. Dow’s takeover of Union Carbide is expected to be completed in the third quarter, later than originally thought.
In its so-called performance chemical and performance plastics businesses, the company saw sharply higher volumes during the quarter.
Crude oil, one of the main raw materials in the industry, averaged about $28 in the quarter, about $10 a barrel higher than the same period last year, but have recently showed signs of slipping because of additional production.
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Earthlink Losses Less Than Expected
EarthLink Inc. said it lost less money than expected in the second quarter, thanks to a 47 percent jump in the number of customers for its Internet service.
Atlanta-based EarthLink, the country’s second-largest Internet service provider after America Online, reported a $35.2 million loss in the April-June period, or 29 cents per share not counting one-time items. That was better than the 36 cent-per-share loss anticipated by analysts surveyed by First Call/Thomson Financial.
Including the one-time items, EarthLink lost $63.7 million, or 52 cents a share, compared with a loss of $39.7 million, or 35 cents a share, in the same quarter last year.
The quarter’s primary expense was EarthLink’s $300 million purchase last month of OneMain.com, a Virginia ISP with 762,000 subscribers. EarthLink estimates it will have 5 million subscribers by the end of the year.
“Frankly, the investment community would like to see more growth,” said Fred Moran, head of Internet research at Jefferies and Co. “The 5 million subscribers is what we would consider a conservative number, very achievable.
“We still like EarthLink long term, but we’re cautious short term given the volatility of Internet stocks,” he said.