AdvanSource Biomaterials Corp. (AMEX:ASB) managed to pare its net losses during the third quarter, despite a decline in royalties from its medical device customers.
The Wilmington, Mass.-based polymer maker reported sales of $668,000 for the three months ended Dec. 31, 2009, down 2.9 percent compared with $688,000 during the third quarter of fiscal 2009. Net losses narrowed 45.8 percent to $542,000, compared with net losses of $1 million during Q3 2009.
Sales of the company’s polymer biomaterials were strong during the quarter, rising more than 247 percent to $455,000. But royalty revenues from licensing deals with medical device customers took a hit, falling 61.8 percent to $213,000, compared with $557,000 during the same period in fiscal 2009. AdvanSource said the decline was due to a renegotiated deal with a major customer that makes up the bulk of its royalty income, which saw it receive less per unit of sale of the customer’s product, according to a regulatory filing.
