Australia's CogState slides on restructuring plan, grim outlook

Cogstate

10/05/2023 01:53

** Shares of neuroscience technology firm CogState Ltd
 CGS.AX  slide as much as 11.5% to A$1.46, their biggest
intraday drop since Feb 24, if losses hold
    ** Co announces restructuring that will eliminate about 13%
of its fulltime workforce and will reducing annual costs by
about A$2.6 mln ($1.76 mln) on implementation
    ** CGS said restructuring as a result of continued revenue
delays in its Clinical Trials segment 
    ** We expect that the cost reductions will help us to
restore Clinical Trials operating margins - Chief Executive Brad
O'Connor
    ** Forecasts FY23 revenue in the range of A$39 mln - A$41m
about 9% - 12% below FY22
    ** Stock hits its lowest since April 24
    ** YTD, CGS down nearly 16% as of last close


($1 = 1.4743 Australian dollars)
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))