MDS claims improving profitability after third quarter loss

MDS, a provider of life sciences products and services, has said it is "continuing to take action to improve profitability" after recording a $10 million (5.65 million pounds) net loss in the third quarter of the year.

The firm said its total revenue for the quarter ending July 31st 2008 was $321 million. Net revenue stood at $298 million, down three per cent from the $308 million recorded in the same period of 2007.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), meanwhile, were $41 million – 16 per cent lower than the figure of $49 million posted in the third quarter of last year.

There was, however, strong performance from group subsidiary MDS Pharma Services, which saw its new business wins increase 42 per cent over the quarter to a value of $169 million.

MDS president and chief executive Stephen DeFalco said the adjusted EBITDA nevertheless represent a "step-up" from the company’s second quarter performance.

"We remain focused on profit improvement initiatives at MDS Pharma Services until we can get the full benefit of our strong orders trajectory," he added.

MDS comprises three arms – MDS Analytical Technologies, MDS Nordion and MDS Pharm Services – which specialise in the areas of analytical instruments, molecular imaging and contract research for the pharmaceutical sector.