NEW YORK (GenomeWeb News) – Caliper Life Sciences today reported an 8 percent decrease in year-over-year revenues for its third quarter due to divestitures in 2009-2010, but on an organic basis revenues were up 11 percent.
The Hopkinton, Mass.-based firm had total revenues of $29.7 million for the three-month period ended Sept. 30, compared to $32.2 million for the third quarter of 2009. It beat analysts' consensus estimate for revenues of $27.5 million.
Over the past year, Caliper has divested two pieces of its business, as it focuses on its core technologies. In December 2009, the firm sold its Xenogen Biosciences subsidiary to Taconic Farms for about $11 million. It followed that sale with the divestiture this year of its RapidTrace solid phase extraction and TurboVap evaporation product lines to Biotage for $16.5 million in cash.
For the third quarter of 2010, Caliper's imaging products revenue increased to $14.5 million from $12.2 million year over year, while sales for its LabChip platform increased to $7.8 million from $7 million, and sales for its automation products decreased to $5.2 million from $8.7 million. Its services revenue also declined to $2.3 million from $4.3 million.
"As we previously mentioned, we're repositioning our remaining automation platforms on fast-growing genomics and biotherapeutic applications and expect to see gradual improvement in automation growth over time," Caliper CFO Peter McAree said during a conference call following the release of the financial results.
Caliper posted a net loss of $1.3 million, or $.03 per share, compared to a net loss of $3.4 million, or $.07 per share, for Q3 2009. Its adjusted loss per share for Q3 2010 was $.01, Analysts, on average, expected a loss per share of $.06.
The firm's R&D spending increased 5 percent to $4.4 million from $4.2 million, while its SG&A expenses were up 2 percent at $11 million from $10.8 million.
Caliper finished the quarter with $38.8 million in cash, cash equivalents, and marketable securities.
The firm also increased its revenue guidance for fiscal-year 2010. It now expects revenues of between $119 million and $121 million, up from previous guidance of between $117 million and $120 million.
Last week, Caliper announced that it had inked a deal with Illumina, under which Caliper's LabChip XT library preparation tool and its LabChip GX quality control platform will be co-marketed with Illumina's Genome Analyzer and HiSeq2000 systems. The LabChip XT was launched this past quarter and is expected to be a key sales growth driver for the firm.
During the conference call, Caliper President and CEO Kevin Hrusovsky called the next-generation sequencing opportunity "explosive," adding that by the end of 2011 there will be 3,000 next-gen sequencing platforms on the market. He added that Caliper believes the addressable market opportunity for the firm is one LabChip XT for every two next-gen sequencers.
This article has been updated to clarify information presented in the conference call regarding the LabChip XT's commercial opportunity.