Encorium Q3 net loss widens

Net revenue for the third quarter of 2008 was $7.4 million, an increase of 3.5%, compared to $7.2 million for the third quarter of 2007. The increase in net revenues was primarily due to a $650,000 increase in revenues generated by the company’s European operations, offset by a $400,000 decrease in revenues generated in the US.

Net revenue for the nine months ended September 30, 2008 decreased to $23.2 million, as compared to $23.3 million for the nine months ended September 30, 2007. The company reported a net loss for the nine months ended September 30, 2008 of $7.3 million, or $0.36 per diluted share, which includes the $1.9 million non-cash impairment charge, as compared to a net loss of $2 million, or $0.11 per diluted share, for the nine months ended September 30, 2007.

David Ginsberg, Encorium Group’s CEO, said: “We continue to believe we are well positioned to compete and win new business in today’s competitive environment. Importantly, our European capabilities have been a key differentiator. This type of value-added service was one of the main reasons for our continued new business wins, which amounted to $16 million in the quarter, up from $4 million in prior-year period.

“Year to date we have $31.7 million of announced new business awards up from $22.6 million in the prior period. Recent new business wins include contracts in the therapeutic arena of oncology, which is a recent focus for Encorium, and demonstrates how our increased business development efforts are starting to pay off.”