Proteome to keep close eye on the bottom line

Proteome Systems (ASX:PXL) has reported a half-year loss before tax of AUD$14.2 million, and with cash of only $11.6 million at December 31, the company is watching its pennies extremely carefully.

Revenues were $2.3 million, compared with $5.1 million in the previous corresponding period. No sales of the company's proteomics technology platform were recognised in the period.

"[In Proteome Systems you see] the fruits of over $75 million of investment over 5 years, and the market is valuing it at half that amount," said chairman Graham Bradley.

He said the company did not intend to go back to the market for further funding for at least 18 months. The company pledged in November to cut spending by 30 per cent.

"This has not been a stellar six months in terms of revenue," said Proteome's CEO, Keith Williams. He said he was hopeful that a number of sales to universities and research institutes would be finalised soon. "We have not yet got pen to paper," he said. "I'll be very disappointed if we don't start to see some real activity."

The company sold eight electrophoresis instruments during the half-year, and no protein-processing Xcise units -- although it anticipates a further order from its distributor during this half-year.

It made the first stand-alone sale of its BioinformatIQ software platform to the Australian Proteome Analysis Facility, and also made sales of its GlycoSuite database and software products in the US, Australia and Korea.

The company expects its first clinical product, developed using its proteomics expertise, to be a hand-held point-of-care tuberculosis diagnostic test. It has already identified 15 TB proteins, and expects a prototype test to be available in around 18 months. Bradley said Proteome was looking to strike a partnership for the commercialisation of this test during 2005.

Proteome's chemical injet printer (ChIP) was also launched in Australia earlier last month.