May 14, 2009 / 11:45 AM / 9 years ago

UPDATE 1-LAB Research posts Q1 loss

* Q1 loss C$0.16/shr vs EPS C$0.03 year ago

* Q1 rev falls 16 pct to C$13 mln

May 14 (Reuters) - Canada’s LAB Research Inc LRI.TO posted a quarterly loss, hurt by lower revenue at its Danish and Canadian operations. For the first quarter, the company, which does pharmaceutical research on a contract basis, reported a net loss of C$3 million, or 16 Canadian cents a share, compared with a profit of C$547,000, or 3 Canadian cents a share, a year earlier.

Revenue dropped 16 percent to C$13 million. Revenue at the company’s Canadian operations fell 7 percent, while that at its Danish operations slumped 23 percent.

In March, LAB Research said it plans to suspend expansion projects to shore up its cash flow and warned it might not be able to satisfy certain Canadian debt obligations.

LAB Research had said it owed more than C$40 million in loans to one Canadian bank related to LAB Canada’s covenants. [ID:nN30189845]

In a statement on Thursday, the company said it will have to raise sufficient equity to meet its obligations if the Canadian bank demands repayment of the loans, and that it is negotiating with its Canadian banker.

Shares of the company closed at 73 Canadian cents Wednesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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