NEW YORK, Jan 31 – Based on increased sales of its genomic mutation analysis tools, Omaha, Neb.-based Transgenomic reported increased revenues for the fourth quarter Wednesday, while losses decreased and expenses held steady.
The company reported fourth quarter revenues of $7.1 million, up 63 percent from revenues of $4.3 million in the third quarter of 1999.
" During the quarter approximately 20 percent of the units sold specifically for variation detection applications went to existing customers,” Collin D’Silva, Transgenomic CEO said in a statement. “In addition, strong fourth quarter sales to commercial accounts helped that category represent approximately 25 percent of total installations for the year. These results demonstrate our success with utilizing a single platform to provide solutions for multiple applications."
Total operating expenses for the quarter came to $5 million, including $3.7 million for sales and administrative costs, and $2 million for R&D. The company's expenses last year were substantially similar, although sales and administrative costs increased by $700,000 from the year-ago quarter.
Transgenomic’s fourth quarter losses totaled $374,000, or two cents per share, a figure that took into account a net gain of $604,000 from the sale of the company’s non-life sciences product line in March 2000. These losses beat Wall Street’s expectations by four cents per share, based on a survey of two brokers by FirstCall/Thomson Financial.
The three year-old company, which completed its Initial Public Offering in July 2000, produces and markets the Wave System, which is designed to identify DNA mutations using micro-bead technology. The product packs micro-beads, each of which has a proprietary surface chemistry that interacts with DNA molecules, into a DNA separation column. The product than uses liquid reagents to separate out the molecules, and the analysis is performed using the company’s bioinformatics Wavemaker software.