Carrington Reports 2007 Financial Results

   Excluding net funding of $2.8 million for DelSite Biotechnologies, Inc., the Company's wholly-owned drug delivery subsidiary, the pro forma loss for 2007 was $7.0 million. 2006's net loss, including DelSite net costs of $3.1 million, was $7.6 million, or ($0.70) per basic and diluted share, on Company- wide revenue of $27.4 million.

   The decrease in revenue for 2007 was primarily due to a decrease in consumer services revenue, to $11.6 million from $16.6 million a year ago. Medical services revenues dropped slightly, to $8.4 million from $8.8 million in 2006; royalty income remained roughly the same at $417,000.

   Revenue for the fourth quarter ended December 31, 2007 decreased to $5.0 million from $6.7 million in the year-ago period. The net loss for the quarter was $2.7 million, or ($0.25) per basic and diluted share. The pro forma loss, before accounting for net expenses of DelSite, was $2.1 million. The year-ago fourth quarter's final net loss, including DelSite net expenses of $622,000, was $2.2 million, or ($0.20) per basic and diluted share.

   "While our consumer services revenue base continues to be under pressure due to general economic conditions and lower order flow from our historically largest customer, we are stabilizing our revenue base in medical services. I am excited about the advances being made in the three technology platforms and the typhoid antigen being developed by DelSite. As previously stated, DelSite is currently engaged in the cGMP manufacture of the H5N1 (bird flu) nasal powder vaccine and is excited about initiating the Phase I clinical trials later this year," noted Carlton E. Turner, PhD, Carrington's President and Chief Executive Officer.

   "As previously announced, the Board of Directors, in conjunction with outside advisors, is reviewing a range of strategic options, including the sale of non-core assets, to help address our present liquidity concerns. If we are to strengthen the scientific, clinical and business developments at DelSite and enhance shareholder value, we must secure funds and focus on clinical developments. We cannot afford to dilute our efforts," Turner added.

   Keywords: Carrington Laboratories, Inc., Biotechnology Business, Biotechnology Company, Drug Delivery, Carrington Laboratories

   This article was prepared by Biotech Business Week editors from staff and other reports. Copyright 2008, Biotech Business Week via NewsRx.com.

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