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Cancer Genetics Q4 2019 Revenues Up 12 Percent

NEW YORK – Cancer Genetics reported on Monday that its fourth quarter revenues grew about 12 percent year over year, which the firm noted was  partially the result of the adoption of the new ASC 606 revenue recognition standard and the variability in project start and end times at the individual contract level in the firm's discovery services business unit.

For the three months ended Dec. 31, 2019, the firm reported total revenues from continuing operations of $1.9 million, up from $1.7 million in the fourth quarter of 2018.

In July 2019, Cancer Genetics sold its biopharma and clinical laboratory businesses to Interpace Biosciences and siParadigm respectively, for a total of about $25 million, which the firm noted will help cash and future cash payment streams.

"During 2019, we transformed the business significantly by improving our balance sheet and refocusing the business on assisting pharmaceutical and biotechnology companies in improving and streamlining their drug discovery and development processes to help improve the odds of success for new drug candidates and to speed up the time to market," Cancer Genetics CEO John Roberts said in a statement.

The company noted that it continues to evaluate potential strategic options including collaborations, mergers or acquisitions, or other strategic transactions.

Cancer Genetics' Q4 net loss plummeted almost 95 percent to $200,000, or $.14 per share, from $3.8 million, or $4.08 per share, in the fourth quarter of 2018.

Total operating expenses for Q4 fell 64 percent to $900,000 from $2.5 million in Q4 2018, primarily the result of the firm incurring costs in Q4 2018 linked to a corporate transaction.

For full-year 2019, Cancer Genetics' total revenues grew 48 percent to $7.3 million from $4.9 million in 2018.

The firm shaved its 2019 net loss to $6.7 million, or $3.48 per share, from $20.4 million, or $22.39 per share, in full-year 2018.

Cancer Genetics incurred no R&D expenses in 2019 compared to $154,000 in 2018. Its SG&A costs for 2019 dropped 20 percent to $6.3 million from $7.9 million in the prior year.

"Our vivoPharm business unit had a sold year of revenue growth year-over-year, and experienced numerous new discovery programs coming from Europe and our existing customer base in the US," Roberts said in a statement. "While we continue with the process of assessing various strategic options, it is important to note that our vivoPharm business continues to operate efficiently… [and] therefore we can afford to take a thoughtful and methodological approach in regards to a future transaction."

The firm ended the year with $3.9 million in cash and cash equivalents and $350,000 in restricted cash.

Cancer Genetics' shares rose about half a percent to $3.04 in morning trading on the Nasdaq.