NEW YORK (GenomeWeb News) – Nanogen today reported that total revenues for the second quarter of 2008 grew 25 percent to $12.9 million from $10.3 million in the year-ago period, while its loss fell by 65 percent.
Nanogen posted a 51 percent increase in product revenues for the quarter ended June 30, to $8 million from $5.3 million recorded in the comparable period of 2007.
Revenues from license fees and royalties dipped to $1.5 million from $2.1 million in the second quarter of 2007, while revenue from grants and contracts increased to $3.7 million from $3 million in the prior-year quarter.
Nanogen cut its second-quarter R&D spending by 37 percent, to $4.8 million from $7.5 million in the year-ago period. The company reduced its selling, general, and administrative costs to $8.3 million from $11.2 million year-over-year.
Total costs and expenses decreased nearly 20 percent to $19.3 million from $24 million in the prior-year quarter.
Nanogen’s quarterly net loss improved to $5.1 million from $14.6 million year-over-year. The second quarter of 2008 included $1.1 million in charges related to Nanogen’s consolidation of its point of care manufacturing operations into one location in San Diego, which it announced in May.
Nanogen reiterated its previous guidance of a full-year revenue increase of around 25 percent over 2007 revenues of $38.2 million.
The company said that this anticipated growth in revenues, combined with its reductions in operating expenses, should allow it to reach operating cash flow breakeven by the end of 2008.
As of June 30, Nanogen had cash and cash equivalents of $3.3 million.