Skip to main content
Premium Trial:

Request an Annual Quote

Cancer Genetics Q1 Revenues Drop 22 Percent

NEW YORK – Cancer Genetics reported after the close of the market on Wednesday that its first quarter revenues fell 22 percent year over year, mainly due to a non-recurring IP licensing agreement a year ago.

For the three months ended March 31, Rutherford, New Jersey-based Cancer Genetics posted total revenues of $1.4 million versus $1.8 million in the same quarter the year before. In Q1 2019, the firm had $300,000 in revenue from an IP license agreement that was unrelated to its ongoing discovery services business.

Cancer Genetics noted that it has made meaningful progress with evaluating potential strategic options, including collaborations, mergers or acquisitions, or other strategic transactions.

"Efforts have accelerated to identify strategic and collaboration partners so we can execute our plans to further enhance value for our shareholders," John Roberts, CEO of Cancer Genetics, said in a statement. "We intend to transform the business significantly by continuing to improve our balance sheet and refocusing the business on precision and translational medicine."

Cancer Genetics' net loss in the first quarter dropped 29 percent to $1.2 million, or $.56 per share, from $4.7 million, or $2.83 per share, in the year-ago period. The main reason for the steep decline in net loss is that the company divested its biopharmaceutical business to Interpace Diagnostics a year ago.

The firm's sales, marketing, general, and administrative costs for Q1 fell about 10 percent to $1.8 million, from $2.0 million in Q1 2019, primarily because of decreased corporate costs and partly offset by higher sales and marketing expenses in the firm's Discovery Services business unit compared to Q1 2019.

While Cancer Genetics anticipates that certain expenses related to selling off its biopharma and clinical laboratory businesses in July 2019 will continue in 2020, Roberts said he believes that operating costs will decrease in the second half of 2020.

Cancer Genetics incurred no R&D expenses in Q1, compared to $454,000 in Q1 2019.

The company finished the quarter with cash and cash equivalents of $3.6 million. 

Cancer Genetics' shares dropped 4 percent to $3.04 in morning trading on the Nasdaq.