NEW YORK, Feb. 25 - Sequenom posted a 150 percent spike in fourth quarter revenues and a nearly doubled net loss.
Sales of its MassARRAY tools helped the company to report $9.3 million in revenue in the quarter compared with $3.7 million one year ago, Sequenom said on Friday.
Total costs for the quarter ended Dec. 31 came in at $23.5 million, nearly twice the $13.8 million the company posted last year. Leading the increase was a jump in R&D spending to $8.7 million in the final three months of 2001 compared with $6.0 in the comparable period year over year.
Additionally, products and service costs jumped to $5.2 million in the current quarter from $2.8 one year ago, and selling and general administrative costs ballooned to $8.7 million in the period from $6.0 million last year.
As a result, net loss for the quarter was $12.5 million, or $.33 per diluted share, compared with $7.5 million, or $.31 per diluted share, year over year.
Looking forward, Steve Zaniboni, Sequenom's chief financial officer, said in a statement that he expects "continued strong growth in [our] genetic systems business unit through increased demand for MassARRAY systems and consumables and collaborative services."
He said revenue growth in 2002 will be nudged along by three new launches: RealSNP.com, an e-commerce platform designed to make Sequenom's SNP-assay portfolio available across a broader customer base; an allelotyping consumable and software product designed to allow customers to analyze SNP allele distributions in pools of DNA samples; and a MassARRAY-based product line for DNA re-sequencing that may be used in applications such as diagnostic sequencing, SNP discovery, and microbial identification.
He also noted that revenues will begin to come from the pharmaceuticals business unit through discovery services and licensing arrangements. "By the end of 2002 we plan to initiate a development program for the top 40 drug targets and top 40 diagnostic markers that we identify," he said.
Two weeks ago, Sequenom, based in San Diego, said it launched a new Asian Pacific headquarters. The new offices, located in the Queensland Institute of Medical Research's Comprehensive Cancer Research Center, in Australia, will handle regional operations, distribution and customer support, and serve customers in Japan, Korea, Taiwan, New Zealand, Singapore, and Australia.
"The Asia-Pacific region is an emerging marketplace for genetics research, as evidenced by our growing presence throughout the region," said Sequenom vice president of corporate sales and marketing Tristan Orpin.