NEW YORK (GenomeWeb News) – Transgenomic this week reported nearly flat revenues in the second-quarter of 2008, and its profit dropped 55 percent in the quarter compared with the year-ago period.Â
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The Omaha, Neb.-based genetic test provider said that it brought in revenues of $6.2 million for the three-month period ended June 30, roughly the same number it recorded in the second quarter of 2007.
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The company said its third consecutive quarter of profitability came from stable instrument and consumables sales and growth in its Molecular Clinical Reference Library and from its Pharmacogenomics Services Laboratory business.
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Specifically, Transgenomic said it saw a 52 percent increase in net sales from its lab services business, and a decrease of 7 percent in its instrument-related sales.
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Transgenomic President and CEO Craig Tuttle said the company continues to build customer validation of its discovery and detection services, and it is working to increase sales from its reference lab and its pharmacogenomics business with drug makers. Tuttle also said that the company is seeking new collaborations in Phase III clinical trials that could bring in more revenue.
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Transgenomic posted a profit of $101,000, or $.00 per share, compared to a net profit of $226,000 million, or $.00 per share, in the second quarter of 2007. Last year’s second quarter included a $937,500 gain on the sale of an investment in equity securities, which was partially offset by restructuring charges of $624,000 related to the closing of a production facility in England and an administrative office in France, the firm said
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The firm’s R&D spending rose to $560,000 from $492,000, while its SG&A costs were flat at $3.1 million.
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Transgenomic finished the quarter with $5.7 million in cash and cash equivalents.