NEW YORK (GenomeWeb News) - Nanogen yesterday said third-quarter revenues rose 11 percent as R&D spending rose 16 percent and the company cut its net loss by 36 percent.
Total receipts for the three months ended Sept. 30 rose to $8.4 million from $7.5 million year over year.
The company said product-related revenue increased 17 percent to $5.5 million from $4.7 million, and income from licensing and royalties slipped 2 percent to $1.8 million from $1.9 million.
Revenue from contracts and grants rose 8 percent to $986,000 from $912,000.
R&D spending rose to $7.2 million from $6.2 million year over year.
The company said its net loss narrowed to $7.5 million from $11.8 million in the year-ago period.
Nanogen had around $8.2 million in cash and cash equivalents and $7.1 million in short-term investments as of Sept. 30.
The company said it expects revenue for the fourth quarter to be around $9 million, while its full-year revenue for 2008 could increase as much as 25 percent over 2007.
The company said in September that it has hired Credit Suisse to help it evaluate strategic opportunities for its microarray business that could include selling, closing, or finding a partner for it.
“This was a transformational quarter as we initiate our exit of the array business to focus on the faster growing real time and point of care opportunities,” said Howard Birndorf, CEO and chairman of the board at Nanogen.
The company expects the divestiture of the array business to improve cash flow by at least $15 million per year.
“We anticipate our financial profile will change quickly in the new year and are targeting achieving cash flow breakeven late in 2008,” Birndorf added.