Is a loss on time before your first move supposed to affect your rating?

My opponent in two Twixt games just took a huge ratings hit because he hasn't been logged on this past week. He's about to lose a lot more in other games as well. It was my understanding  that if you resign on your first move, you don't lose points. So if you run out of time instead, then you DO lose points? What's the reasoning there?

That was always the case, David. I suppose the reasoning is to promote playing more frequently.

... and not drag games/tournaments.