Like many of its compatriots in the contract research sector BASi reported an increase in project delays and cancellations, which contributed to the firm’s net loss of $1.58m, or 32 cents per share, in the quarter.
"We believe we serve a market that will continue to invest in new product development, employing our services,” said Michael Cox, BASi’s chief financial officer.
“But we are anxious about the impacts the current economic conditions will have on our customers and our business as we strive to control costs and conserve cash," he added.
Revenue in the period, the firm’s first quarter of fiscal 2009, decreased 24 per cent to $8.1m, with contract revenues down 25 per cent to around $6m. BASi’s core contract offerings are in the area of toxicology, bioanalytical testing and non-GLP (good laboratory practice) research services.
BASi exited the Phase I sector with the sale of its Baltimore Clinical Pharmacology Research Unit last June. The company sold the business to a subsidiary of Canadian CRO Algorithme Pharma for $850,000. This includes all operating assets and the lease for the site where the facility is located.
The firm also makes laboratory instrumentation products and accessories, and posted an 18 per cent dip in sales to $2.1m.
Since the start of the first-quarter period, BASi has been reducing costs by reducing personnel costs, and CEO Richard Sheppard warned the firm’s its fiscal 2008 annual report that current year is “likely to be one of severe challenges.”
Sheppard has taken a pay cut in recognition of the difficult operating environment for BASi in light of the drop in revenues and tougher operating climate.
His base salary has been cut from $35,000 per month to $20,000 per month, offset by a new housing allowance of $1,000 per month.