Friday, September 5, 2008

MDS reports $10M loss, cuts profit outlook

MDS reports $10M loss, cuts profit outlookMDS 3-month TSX chart

Life sciences company MDS Inc. cut its revenue and profit guidance for the year as the company said it lost $10 million in the third quarter.

The Toronto-based company said a slower than expected increase in revenue at MDS Pharma Services, related to the delay in the start of certain customer studies, has led it to cut its net revenue forecast to a range of between $1.23 billion and $1.25 billion. The company's previous revenue guidance was between $1.25 billion and $1.29 billion.

The company said it also expects a profit for 2008 in the range of 15 to 23 cents a share, down from a June forecast of 37 to 45 cents a share.

The downward revision to the company's outlook came as it reported that third quarter net revenue dipped to $298 million from $308 million in same quarter of 2007.

The company said it lost $10 million, or eight cents a share, in the third quarter that ended July 31, compared with a profit of $7 million, or five cents a share, a year earlier.

"During the quarter, we took actions to improve profitability across our businesses and were able to achieve a step-up in adjusted [earnings before interest, taxes, depreciation and amortization] versus Q2," said Stephen DeFalco, the president and CEO of MDS Inc.

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