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Third Wave's Q4 Revenues up 31 Percent, But Loss Rises on R&D, Litigation Costs

NEW YORK (GenomeWeb News) – Third Wave Technologies today reported that its revenue grew nearly 31 percent in the fourth quarter of 2007, but its net loss climbed nearly 72 percent on increased R&D and legal expenses. 
The firm reported Q4 revenues of $8.9 million, compared with $6.8 million in the fourth quarter of 2006. Sales for the recent quarter included clinical product revenue of $7.3 million, a 26 percent rise from $5.8 million in the previous year’s fourth quarter. Research product revenue was $1.6 million, up 65 percent from $954,000 in the fourth quarter of 2006. License and royalty sales were minimal, dropping to $31,000 from $49,000 year over year.
Third Wave posted a net loss of $7.9 million, or $.18 per share, compared with a loss of $4.6 million, or $.11 per share, in the comparable quarter last year.
Research and development spending rose 83 percent year over year to $6.7 million from $3.7 million, while SG&A costs ticked up around 5 percent to $6 million from $5.7 million year over year. The costs of litigation in the fourth quarter of 2007 rose from $171,000 to over $1.8 million.
For full-year 2007, Third Wave reported total revenues of $31.1 million, up 11 percent from revenues of $28 million for fiscal 2006. Clinical product revenues for the full year rose 25 percent to $26.3 million from $20.9 million, while research products revenue fell 32 percent to $4.6 million from $6.8 million. Licensing and royalty revenue increased to $264,000 from $155,000, and the firm reported no grant revenue in 2007 versus $183,000 in 2006.
Research and development spending soared in 2007, rising 83 percent to $22.8 million from $12.4 million, while SG&A costs remained steady at $25.8 million in fiscal 2007 compared with $25.9 million the previous year.
Net loss for fiscal 2007 was down 11 percent to $16.8 million, or $.39 per share, from $18.9 million, or $.45 per share, in 2006. 
Third Wave projected total revenues of between $36 million and $37.5 million for fiscal 2008, with molecular diagnostic revenue growth of around 25 percent to between $33 million and $34.5 million, and research revenue of around $3 million.
The firm finished the year with cash and cash equivalents of $35.7 million.
Third Wave CEO Kevin Conroy said the company is focused on expanding its human papillomavirus diagnostic business globally and plans to make two product submissions to the US Food and Drug Administration for HPV, including a screening test for HPV type 14 and a genotyping test for HPV types 16 and 18. The company also plans to enhance its European distribution network and to grow its molecular diagnostics business, Conroy said in a statement.

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