deCODE's 2nd-qtr 2008 net loss widens 13.6%

Iceland's deCODE genetics' operating loss for the second quarter of the year was $13.5 million, a 41% improvement on the comparable period the year before, but net loss widened 13.6% to $18.4 million, hit by unrealized losses resulting from the revaluation of the company's auction rate securities investments.

During the period, basic and diluted net loss per share was $0.30 from $0.27, despite the fact that income reached $15.0 million, double the $7.6 million it earned in second-quarter 2007, thanks to growth in the firm's genomic services business, which includes its diagnostics, deCODEme personal genome analysis, and contract genotyping unit.

Despite deCODE's growing losses, Lehman Brothers analyst Peter Welford did not change his $.090 price target on the firm but reiterated his cash flow concerns, predicting a cash shortfall by early 2009 in the absence of licensing deals or liquidation of ARS investments.