Digene, which has also developed a test for the virus that causes cervical cancer, reported a loss of $3.3 million, or 19 cents a share, for its fiscal third quarter ended March 31

This compares with a loss of $1.6 million, or 10 cents a share, in the year-ago quarter.

In February, Cytyc Corp. (CYTC) agreed to buy Gaithersburg, Maryland-based Digene in a cash-and-stock deal, creating a medical diagnostics firm focused on the manufacture of products for the diagnosis of women's cancers and infectious diseases. The deal has been delayed several times by a federal antitrust review.

The companies said the U.S. Federal Trade Commission will request additional information on the proposed deal by May 28.

Digene President Charles Fleischman said he does not expect the request to further delay the deal.

"We believe that the FTC will reissue its second request and that we will promptly respond to that," Fleischman told Reuters in an interview. "We do not believe at this point this will require an extension of the deadline."

"We had a solid quarter," he said. "Revenues continue to grow. We continue to drive toward profitability. Our technology is being received in the market and demonstrated as being clinically and cost-effective."

For the quarter, revenues rose 58 percent to $14.2 million from $9 million a year ago.

On May 9, Cytyc extended the expiration date of its exchange offer until May 23, marking it the fourth time the firm has had to prolong its acquisition bid.

Digene's shares closed up 49 cents, or 2.09 percent, to $23.92 in Tuesday trade on the Nasdaq, while Cytyc's shares gained 54 cents, or 3.31 percent, to $16.84 on the Nasdaq. REUTERS

© 2002 Reuters