EarthShell, the US-based manufacturer of biodegradable packaging products, has announced a significant reduction in its losses for the third quarter.
The company reported a preliminary net loss for the third quarter of $4.8 million (€4.9m). This compares to a net loss of $10.6 million in the third quarter of 2001, and a loss of $7.2 million in the second quarter of 2002. These preliminary results exclude a one-time charge of $1.0 to $2.0 million in the third quarter to write-off development costs or impairment charges relating to manufacturing equipment, which is being finalised with the company's operating partner.
Cash used for operations during the third quarter was $3.7 million, a decrease of $3.4 million compared to the second quarter at $7.1 million. Capital expenditures in the third quarter totalled approximately $1.0 million related primarily to the installation of the manufacturing line in Goettingen, Germany.
On 30 September, the company had $2.0 million in short term debt and $12.7 million in cash and cash equivalents, of which, $3.5 million is restricted for future manufacturing equipment purchases and $9.0 million is part of the proceeds of a convertible debenture which are subject to certain restrictions. Subsequent to 30 September, the company increased short-term debt by approximately $1.0 million.
EarthShell will host a conference call and webcast to discuss its third quarter 2002 results today at 2:00pm Pacific Time, 5:00pm Eastern Time. The live audio webcast and replay can be accessed by going to www.earthshell.com.