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Atossa's 2013 Revenues Rise 31 Percent

NEW YORK (GenomeWeb News) – Atossa Genetics said after the close of the market on Thursday that its full-year 2013 revenues grew 31 percent year over year on increased product sales.

The Seattle-based firm recorded $632,558 in total revenues for 2013, up from $481,842 in 2012. While diagnostic testing service revenues slipped to $409,118 from $475,402, product sales rose to $223,440 from $6,440, Atossa said, noting that $205,590 in product sales resulted from the purchase of 10,000 ForeCYTE specimen collection kits by Millennium Healthcare.

Substantially all of Atossa's revenues were recognized before the company voluntarily recalled its Mammary Aspiration Specimen Cytology (MASCT) system in October amid concerns raised by the US Food and Drug Administration, Atossa said.

At the time, Atossa also recalled its breast cancer test, the ForeCYTE Breast Aspirator. In December, it submitted to FDA a 510(k) application for the test. Atossa Chairman, President, and CEO Stephen Quay said in a statement on Thursday that the firm is in the process of addressing the agency's questions.

He added that the FDA completed a re-inspection of the company's Seattle facility earlier this month, and Atossa has responded to the observations and issues that resulted from the inspection.

The company's net loss for 2013 was $10.8 million, or $.70 per share, up from a net loss of $5.1 million, or $.41 per share, in 2012.

Atossa lowered its R&D spending 45 percent year over year to $1.1 million last year from $2.0 million in 2012, but its SG&A costs ballooned to $9.8 million in 2013 from $3.5 million in 2012.

The increase in SG&A spending resulted from the hiring of additional staff and outside professional services to support launch of the MASCT system, an increase in salaries and bonuses, and higher legal costs, among other things, Atossa said.

The company had $6.3 million in cash and cash equivalents as of Dec. 31, 2013.