US provider of drug discovery tools Deltagen saw cutbacks in workforce and the closure of operating units help boost revenue by 93 per cent for the fourth quarter of 2002 to $4.7 million (€4.3m), compared to $2.5 million (€2.3m) for the same period in 2001. Streamlining is set to continue in 2003.
In 2002 the company closed a range of operating units including Deltagen Research Labs, Deltagen Proteomics and Deltagen Europe. In addition, savings were gleaned from the reduction in employees at the company's operations in the San Francisco Bay Area.
Cost savings will continue in 2003 with Deltagen announcing that will cut the company's operations to approximately 150 employees located in a single facility in Redwood City, California.
"Deltagen is a very different company today than it was in 2002," said Joseph M. Limber, interim chief executive officer. "We have succeeded in putting the drag from excess operating expenses behind us, and are moving forward aggressively to increase revenue and maximise efficiencies. We have shed activities and related costs associated with internal drug discovery.
Our workforce is now down to approximately 150 employees from the peak of 450 employees in 2002. "
For the year ended 31 December 2002, revenue increased by 79 per cent to $17.7 million from $9.9 million in 2001. The net loss for the fourth quarter was $21.0 million, or $0.52 per share, compared to a net loss of $14.9 million, or $0.48 per share, in the fourth quarter of 2001.
Looking ahead for 2003 Limber remained positive. "In addition to these substantial cost cutting efforts, significant initiatives to expand our product offerings and increase revenue are well underway," he concluded.