Averion posts $9.2M loss after cut in operating costs.

Byline: Lisa Eckelbecker

SOUTHBORO - Averion International Corp., a business that performs clinical research for drug companies, yesterday posted a 2006 loss of $9.2 million, or 7 cents per share, and said it cut expenses in February to reduce annual operating costs by $2.5 million.

The company, which underwent a merger last year that boosted revenues and affected losses, posted revenues of $27.3 million for the year ended Dec. 31, 2006. Averion's results compared to a loss of $11 million, or 41 cents per share, and revenue of $18.4 million during 2005.

Averion International was created in 2006 after IT&E International Group Inc. of Solana Beach, Calif., acquired privately held Averion Inc. for $25 million in cash, stock and notes. IT&E had previously merged with Millennix Inc., a New York business.

IT&E opened a German business last year to capitalize on work in Europe. Then IT&E changed its name to Averion International, and its stock began trading on the Over the Counter Bulletin Board under the ticker AVRO.

Averion also has offices in San Jose, Calif., and Pottsgrove, Pa., according to its annual filing with the Securities and Exchange Commission.

In February, Averion cut 13 percent of its contract research organization workers in the United States to save money and eliminate duplication. Averion reported yesterday in a news release that the cuts were expected to shave operating costs by $2.5 million a year.

Averion reported it ended 2006 with $8.1 million in cash and equivalent securities. The company's backlog, or orders still to be completed, totaled $35.6 million at the end of last year, Averion reported.

Shares of Averion were unchanged yesterday, closing at 12 cents per share on the Over the Counter Bulletin Board.