LAVAL, Que. — Tough economic conditions and a hit to its European subsidiary caused LAB Research Inc. (TSX:LRI) to widen its losses in the third quarter.
The company reported a net loss of $1.7 million or nine cents per share for the quarter ended Sept. 30, widening a year-ago loss of $1.2 million or six cents per share.
Quarterly revenues totalled $13.1 million, down from $14.1 million last year.
LAB Research provides pre-clinical and non-clinical contract research services to the pharma and biotechnology industries.
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The company said its decrease in revenue was a direct result of the economic downturn which affected its Danish subsidiary in particular.
LAB Denmark's revenues were down 25 per cent to $4.2 million for the quarter. The drop was attributed to lower than expected contract signings due to the economic downturn, and stronger competition. However, the company said an increase in request for proposal activity lately should translate into higher revenues in the fourth quarter.
Its shares closed at 48 cents Wednesday on the Toronto Stock Exchange.