NEW YORK, May 12 (GenomeWeb News) - Nanogen yesterday reported a 37-percent increase in first-quarter revenues, but a boost in operating expenses led to a 46-percent increase in net loss.
Nanogen's revenues for the quarter ended March 31 rose to $4.4 million from $3.2 million in the same period in 2005. Product revenues nearly doubled to $2.1 million from $1.2 million in the prior-year period, while revenues from license fees rose slightly to $1.8 million from $1.7 million in the first quarter of 2005.
Nanogen attributed the increase in product revenues to its recent acquisitions. The company acquired Spectral Diagnostic's cardiac test business in February, and closed its acquisition of Amplimedical on May 1.
Nanogen's net loss widened to $12 million, or $.21 per share, compared to $8.3 million, or $.17 per share in the same period of 2005.
The company said that its operating expenses included $1.4 million of non-cash accounting expense for share-based compensation, compared to $300,000 in share-based compensation in the prior-year period. In addition, the company recorded expenses related to its investment in Jurilab, which were not included in last year's results.
"Excluding these two items, expenses rose modestly to include the costs associated with the acquired Spectral operations," said Robert Saltmarsh, Nanogen's CFO, in a statement.
R&D spending rose to $6.3 million in the first quarter of 2006 from $4.9 million in the prior-yar period.
As of March 31, the company held $12.3 million in cash and cash equivalents. The company's cash position including short-term investments was $32.4 million.