Encorium Group, a CRO, reported third quarter revenue decreased 18% to $4.5 million but its loss from continuing operations narrowed to $643,389 or $(0.04) per diluted share for the third quarter of 2009, from a net loss of $2.4 million, or $(0.12) per diluted share, in the third quarter of 2008.
In July, the company sold substantially all of the assets of its U.S. business to Pierrel Research USA. Due to this sale, for the three and nine months ended Sept. 30, 2009 and 2008, the results of the U.S. business have been presented as discontinued operations in the company's consolidated financial statements.
The company said the decrease in net revenues was primarily attributable to unfavorable foreign currency fluctuations of $200,000 for the three months ended Sept. 30. About $650,000 was attributable to revenue recognized on a contract that completed in 2008.
Encorium had a consolidated backlog at Sept. 30 from continuing operations of $19.9 million, which included approximately $8.3 million of new business wins in the first nine months of 2009 compared with a backlog of $27 million a year earlier.
Encorium's balance sheet at Sept. 30, showed cash and cash equivalents of $318,243 and stockholders' equity of $925,423.
The company's latest financials have been prepared on a going concern basis. The company announced on Oct. 19, 2009, that it terminated previously disclosed negotiations for the sale of its wholly-owned subsidiary Encorium OY to a clinical research organization based in the United States and will not pursue a sale of the company or Encorium Oy at this time.
Dr. Kai Lindevall, executive chairman said, "We are very pleased that we were recently able to shore up our balance sheet. While additional financing is likely necessary, we believe our experience and capabilities in the vaccine field coupled with the recent new awards in this area demonstrate the long term potential we have to grow into a leading vaccine franchise with expertise in pre-clinical support, regulatory consultancy and strategic trial planning."