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Encorium Reports Second Quarter 2010 Financial Results
Date:8/17/2010

2009, respectively.  SG&A expenses for the first six months of 2010 were $3.8 million, or 56% of net revenue, compared to $4.3 million, or 48% of net revenue, for the prior year period.  

The Company reported a net loss from continuing operations for the six months ended June 30, 2010 of $2.7 million, or $(0.80) per diluted share, as compared to a net loss from continuing operations of $1.8 million, or $(0.72) per diluted share for the six months ended June 30, 2009.  

We anticipate that will meet our cash requirements through September 2011, assuming we are able to fully implement our current costs cutting initiatives, we are able to win additional contracts during fiscal 2010 and we are able to maintain our current customer contracts.  In the event we are unable to do so, in order for the Company to continue as a going concern we will be required to obtain additional capital or significantly reduce our operating costs.  Encorium's balance sheet at June 30, 2010 reflected cash and cash equivalents of $176 thousand.  Net cash used in operations for the six months ended June 30, 2010 was approximately $853 thousand.

On July 19, 2010, the Company acquired Progenitor Holding AG, a European headquartered emerging market clinical research organization providing international drug development services in emerging market regions.  The consideration for the acquisition was a combination of cash and stock valued at $2.0 million, plus earn-out consideration of $1.8 million.

Dr. Kai Lindevall, Chief Executive Officer stated, "We are pleased to see the improved results over the first quarter as a result of recent contract awards and our continued focus on cost cutting.  With the acquisition of Progenitor we have expanded our service offerings in key emerging markets, including Latin America, India and Asia Pacific, which was a key step to realizing our goal of becoming the world's leading vaccine CRO.  
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SOURCE Encorium Group, Inc.
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