Waltham, Mass.-based Interleukin reported sales of $223,000 for the three months ended June 30, down 57.3 percent compared with $522,000 during the same period last year.
Net losses widened 122 percent to $3.7 million, compared with $1.7 million during the 2008 second quarter. Some of the net loss ($1.4 million) stemmed from discontinued operations, including the Alan James Group.
Interleukin ditched the subsidiary in July for $4.6 million, three years after it paid $7.5 million for the Boca Raton, Fla.-based healthcare products management business.
Excluding the losses associated with that sales, Interleukin’s net loss widened 45 percent to $2.3 million during the period, compared with Q2 2008.
Rising expenses took a heavy toll from the bottom line. Total operating costs, as a percentage of revenue, soared 727 percent to $2.5 million. That’s 1139 percent of quarterly revenues; during second-quarter 2008, total operating costs were 412 percent of revenues.
Research and development and selling, general and administrative expenses made up the bulk of the increased costs, rising 256 percent and 367 percent, respectively, as percentages of revenue.
There was some good news for Interleukin: It won its fight to stay listed on the New York Stock Exchange’s Amex board in May, after the exchange accepted Interleukin’s plan to regain its good graces by the end of the year.