NEW YORK (GenomeWeb News) — CombiMatrix today said that first-quarter revenue dropped 9 percent as R&D spending fell 22 percent and net losses shrank by 73 percent.
Total receipts for the three months ended March 31 decreased to $1.1 million from $1.2 million during the same period last year.
Parent company Acacia separately said it has been notified by the Nasdaq Global Market that CombiMatrix’s stock is not in compliance with market rules because it has not maintained a minimum bid price $1 for 10 consecutive trading days.
Acacia has said it plans to “split off of CombiMatrix” through a common stock sale by Oct. 22. Acacia said it has applied for an initial listing of its common stock with the Nasdaq Capital Market, which has a minimum bid price of $4 per share. CombiMatrix’ stock yesterday closed at $.55 a share.
CombiMatrix said product revenue fell 50 percent to $440,000; services revenue rose 160 percent to $148,000; and revenue from government contracts increased 116 percent to $549,000.
R&D spending decreased to $1.8 million from $2.4 million.
Net loss decreased to $2.1 million from $7.7 million year over year.
CombiMatrix CEO Amit Kumar attributed the decline in losses to “significant cost-cutting measures as well as certain non-cash items.” Kumar added that recent organizational changes in “fixed and variable costs” should help “improve our cash burn throughout 2007.”
CombiMatrix had around $10.5 million in cash, cash equivalents, and short term investments as of March 31.