Bloodbath: SQNM Off 20%; No Financial Forecasts This Year, Looking for Cash

[Stocks-to-Watch]

Genetic analysis technology firm Sequenom (SQNM), which was down a little over 4% in late trading following a deeper-than-expected Q4 loss, is now down $1.71, 22%, at $6.05, after the company held a conference call with analysts in which it offered no forecast but said it would need to raise cash to keep going.

“With just under $43 million in the bank at the end of the year, it is clear that at some point during 2010, we will require additional financial resources,” said interim CFO Paul Maier. “We are currently in the process of assembling our preliminary plans to address this issue.”

Maier said given the early nature of the relatively young nature of the company’s diagnostic test business, and given uncertainty over how much will be required in legal expenses to address class action lawsuits, Sequenom won’t offer any financial forecast through the rest of this year “at least.”

Sequenom for the first time offered a revenue figure for its diagnostic test business: just $94,000 in the fourth quarter, it said.



Original Article Source by Barrons.com