Discovery Laboratories Q4 Loss Widens - Quick Facts

(RTTNews) - Discovery Laboratories Inc. (DSCO) said that its fourth-quarter net loss widened to $11.7 million from $6.8 million in the prior year quarter. But, loss per share was $0.16, unchanged from last year.

Included in the net loss is the change in fair value of certain common stock warrants that are classified as derivative liabilities, resulting in non-cash expense of $0.9 million and non-cash income of $5.6 million for the quarters ended December 31, 2013 and 2012, respectively.

Quarterly operating loss was $10.3 million compared to operating loss of $12.4 million for the comparable period in 2012. During the fourth quarter of 2013, the Company shipped approximately $140,000 of SURFAXIN to its specialty distributor.

The company currently uses the sell-through method for revenue recognition, which means revenue is deferred until its specialty distributor ships product to a hospital and all revenue recognition criteria are met. For the fourth quarter of 2013, all SURFAXIN sales have been deferred in accordance with the Company's revenue recognition policy. The operating loss in the fourth quarter of 2013 includes (i) investments to support the initiation of the AEROSURF Phase 2a clinical trial; and, (ii) costs associated with the initiation of the launch of SURFAXIN.

Grant revenue for the quarter was $74 thousand, down from $195 thousand in the year ago quarter.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.16 per share and revenues of $360 thousand for the quarter. Analysts' estimates typically exclude special items.