UPDATE 1-Xoma Q1 misses expectations, cuts '08 revenue view

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May 12 (Reuters) - Biotech firm Xoma Ltd (XOMA.O: Quote, Profile, Research, Stock Buzz) reported a wider-than-expected quarterly loss as its revenue fell and expense rose, and cut its 2008 revenue view citing delays in a biodefense contract work.

Net loss for the first quarter was $14.2 million, or 11 cents a share, compared with a net loss of $15.9 million, or 14 cents a share, a year earlier.

Total revenue fell about 2 percent to $12.1 million.

Analysts were expecting the company to post a loss of 7 cents a share, before items, on revenue of $16.4 million, according to Reuters Estimates.

For 2008, Xoma expects revenue of 80 percent to 95 percent of 2007 revenue of $84.3 million. It was previously expecting 2008 revenue of 90 percent to 105 percent of 2007 levels.

Analysts were expecting revenue of $83.5 million, which is about 99 percent of 2007 revenue.

The company, which develops therapeutic antibodies, also lowered its outlook for 2008 research and development expense.

It now expects R&D cost to rise between 25 percent and 35 percent, compared with its previous view of 25 percent to 40 percent, from the $66.2 million spent in 2007.

Shares of the Berkeley, California-based company closed at $2.32 Friday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Jarshad Kakkrakandy)