Celera Corp. (CRA) reported break-even earnings in the third-quarter, compared to the Zacks Consensus Estimate of a loss of 6 cents. The company earned a cent in the year-ago quarter.
 
Net revenues for the quarter came in at $40 million as against $45.8 million in the year-ago quarter. Segment wise revenues from lab services were $24.2 million compared to $30.1 million in the year-ago quarter, primarily because of lower reimbursement rates. Revenues from products came in at $10.0 million compared to $10.5 million in the prior year quarter. Revenues for the quarter were primarily from sales of Celera-manufactured products and royalties from sales of RealTime assays used on the m2000 system from Abbott Molecular, a subsidiary of Abbott Laboratories (ABT). Corporate revenues for the quarter came in at $5.8 million as against $5.2 million in the prior year quarter. The $0.6 million increase was primarily attributable to the inclusion of revenues from one of Celera’s licensees Cepheid (CPHD) in the reported quarter which was partially offset by lower revenues from other licensees.
 
Research & Development spend in the quarter decreased to $6.2 million from $7.9 million in the year-ago quarter because of the completion of certain research and development projects and associated lower employee-related costs in the corporate and products segments in addition to the termination of the strategic alliance with Abbott. Selling general & administrative expenses for the quarter came in at $22.6 million compared to $25.2 million in the year-ago quarter.
 
Celera exited the quarter with cash and short-term investments of approximately $321 million, compared to approximately 320 million at June 27, 2009.
 
The company expects to incur a loss of 5 cents to 7 cents in the next quarter. Celera forecasts total revenues to be between $163 million and $167 million in 2009.
 
Currently, we are Neutral on Celera.
Read the full analyst report on “CRA”
Read the full analyst report on “ABT”
Read the full analyst report on “CPHD”
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