NEW YORK (GenomeWeb News) — Transgenomic yesterday said first-quarter revenues inched up 1.5 percent as R&D spending increased 7 percent and the company turned last year’s loss to a modest profit.
Total receipts for the three months ended June 31 rose to $6.3 million from $6.2 million year over year.
Transgenomic CEO Craig Tuttle said in a statement that the company saw “substantial improvement” over the previous quarter, adding that molecular diagnostics sales grew by over $200,000 compared with the first quarter of 2006.
Instruments and consumables sales “met internal projections,” Tuttle said, but the company’s pharmaceutical research services segment fell short of expectations due to “timing issues with receiving samples from some of our key pharmaceutical partners.”
R&D spending dipped to $492,000 from $531,000 year over year.
Transgenomic said its net income was $226,000, compared to a loss of $383,000 in the year-ago period. The most recent quarter included a $900,000 gain from the sale of securities and $600,000 in restructuring charges.
Tuttle said the company expects to realize “the full impact” of ongoing consolidations and other cost-reduction efforts by the fourth quarter of 2007.
Tuttle also predicted “strong financial performance in our traditional mutation discovery tools business and substantial growth in our diagnostics laboratory business and pharmaceutical research services business.”
Transgenomic said it had around $7.9 million in cash and cash equivalents as of June 30.