NEW YORK, April 30 – Nanogen said Monday its first quarter revenues jumped 26 percent to $2.9 million, compared with $2.3 million in the year ago quarter, as revenues from sponsored corporate and government research programs and sales of its NanoChip Molecular Biology Workstation and related products increased.
During the quarter, Nanogen shipped four workstations, including one sale recorded as product revenue, two non-title transfer transactions, and one sale recorded as sponsored research revenue. Nanogen generally records full revenue at the time of title transferring transactions, while non-title transferring transactions may spread instrument revenue associated with the transaction, if any, over the life of the agreement.
The sale was to the University Pompeu Fabra in Barcelona, Spain, which plans to use the workstation to study the Y chromosome in humans as well as mitochondrial DNA SNPs.
Nanogen’s non-title transferring deals were with the Scottish National Blood Transfusion Service and Copenhagen University Hospital. The additional sale recorded through funded research was to Aventis Research and Technologies as part of Nanogen’s collaboration to develop gene expression applications on the NanoChip system.
Total operating expenses for the first quarter of 2001 increased to $10.5 million, compared with $6.5 million in the same period in 2000. The company said the increase stemmed from expanding its sales and marketing team, increasing its patent portfolio, and from fees from patent litigation. The company expects these expenditures to continue at this level while it continues to launch the NanoChip system.
Nanogen of San Diego posted net losses of $6.3 million, or 30 cents a share, compared with net losses of $3.7 million, or 20 cents a share, in the same period last year. Wall Street had expected Nanogen to post losses of 33 cents a share, according to a poll conducted by First Call/Thomson Financial.
The company had $87.3 million in cash, cash equivalents, and short-term investments at the end of the quarter.