Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Array Biopharma (NASDAQ:ARRY) opened 10% higher this morning but have since settled into a modest 2% gain as investors digest the small biotech's latest earnings report. The stock has had difficulty holding onto its gains as the day progresses.

So what: Array reported revenue of $14.1 million and a loss of $0.13 per share for its fiscal second quarter. While the top line plunged 23% year over year, it was still better than the $13.5 million Wall Street consensus -- Array's $0.13 loss was also three cents better than the $0.16 loss analysts expected. The company wound up spending much less on R&D ($9.5 million vs. $13.9 million last year), but this was more than offset by the cost of its partnered programs, which rose from $7.9 million last year to $13.1 million in the latest quarter.

Now what: Expectations were abysmally low for Array this quarter, but even its modest beat represents a big year-over-year drop on both top and bottom lines. The company has yet to convince investors that its trial-phase drugs are going to be blockbusters, as shares barely bested index gains over the past year, despite a tremendous amount of volatility over that time. Earnings for development-stage biotechs don't really offer investors much guidance, at any rate, so it wouldn't be surprising if the stock finishes flat today.

Want more news and updates? Add Array Biopharma to your Watchlist now.

Still looking for a biotech with room to run?
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In the Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.

Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.