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5/8/2003

BioPharma revenue takes a hit; Horizon up

The Daily Times-Call

BOULDER — Array BioPharma reported a 16 percent drop in revenue for the most recent quarter, compared with the same period a year ago.

For the fiscal third quarter of 2002, the drug discovery company reported total revenue of $8 million, equating to a net loss of $6.1 million, or 22 cents a share.

Revenues in the same quarter for the previous fiscal year were $9.5 million, with a net loss of $864,000, or 3 cents per share.

Array announced in late March that it was laying off 30 employees from its Boulder and Longmont plants. The most recent quarter includes a restructuring charge of approximately $600,000.

Array employs approximately 250 at its two locations in Boulder County.

For the first three quarters of fiscal 2003, Array reported revenue of $28 million, compared with $25.1 million for the same period in fiscal 2002.

Net loss for the first nine months of fiscal 2003 was $10.2 million, or 37 cents per share, compared with a net loss of $3.6 million, or 15 cents per share, for the same period a year ago.

During a conference call with investors, Bob Conway, Array’s chief executive officer, said the results were in line with the adjusted guidance the company provided March 31.

Conway also said “near-term growth of our collaboration business has become much more difficult due to market conditions.”

In its fiscal second quarter earnings report, Conway had cited new and expanded collaborations with Amgen and Eli Lilly for a jump in revenue for that quarter.

Horizon sees big jump

Horizon Organic Holding Corp. posted its largest quarterly sales gain in two years during its most recent quarter.

The maker of Horizon Organic products in the United States and the parent company for Rachel’s Organic brands in the United Kingdom reported sales for the first quarter of 2003 of $51.8 million, compared with $42.2 million during the same quarter a year ago.

Earnings from continuing operations for the most recent quarter were $995,000, or 9 cents per diluted share, compared with $845,000, or 8 cents per diluted share, during the first quarter of 2002.

“It’s a wonderful time to be part of the Horizon Organic team,” Chuck Marcy, the company’s president and chief executive officer, said during a conference call with investors. “I’m very pleased to report we not only met, but exceeded, consensus analysts’ expectations.”

Sales increased 23 percent during the quarter.

The “foremost” reason for the increased sales was the introduction of the U.S. Department of Agriculture’s Organic Regulations, which were first put in place late last year and then withstood a political challenge last month that would have weakened them, Marcy said.

On the same day of its earnings disclosure, Horizon announced its newest product: the first infant formula on the market that meets Food and Drug Administration requirements and is also certified organic by the USDA.

Horizon’s Organic Infant Formula with Iron, the company’s first entry into the dry grocery business, will begin being sold on the West Coast later this year.

As for its products currently on the shelf, “In the U.S., the clear home run is single-serve milk,” Marcy said.

Horizon also announced recently that it had been ranked No. 31 in the “100 Best Corporate Citizens” list distributed by Business Ethics Magazine.