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CombiMatrix Q2 Revenues Up 22 Percent

NEW YORK (GenomeWeb) – CombiMatrix reported after the close of the market on Wednesday that its second quarter revenues rose 22 percent from Q2 2015, thanks in large part to a 7 percent increase in total test volume for the period.

For the three months ended June 30, the firm reported total revenues of $3.1 million, up from $2.5 million a year ago.

"During the second quarter we made excellent progress toward our goal of achieving profitability with revenue growth, expanded gross margin, improved cash collections, and a narrowed operating loss," said President and CEO Mark McDonough in a statement. "Diagnostic services revenues grew 21 percent, driven by a 32 percent increase in reproductive health revenues reflecting increased average revenue per test for miscarriage analysis and prenatal testing."

Volumes for certain of the company's tests fell in Q2. However, revenues increased in almost every testing category. On a call with analysts following the release of the earnings, CFO Scott Burell attributed this to an increase in per-test prices.

Revenues from reproductive health tests rose 32 percent to $2.2 million from $1.7 million. This includes an 11 percent increase in revenues from prenatal tests, a 22 percent increase in revenues from miscarriage analysis tests, and a 500 percent increase in revenues from the company's preimplantation genetic screening test, its first next-generation sequencing-based test. These gains were slightly offset by an 11 percent drop in pediatric testing revenues, leading to a 20 percent increase in revenues from all array-based tests. The company also saw a 30 percent increase in revenues from all non-array-based tests.

Volume for reproductive health tests rose 9 percent during the quarter, thanks to a 567 percent increase in PGS testing volume. Prenatal testing volume decreased 11 percent and miscarriage analysis testing volume fell 2 percent in the second quarter. The company also saw a 14 percent dip in pediatric testing volumes, leading to a total 2 percent growth in all array-based test volume. Non-array-based test volume grew 20 percent.

On the call with analysts, McDonough noted the company's number of billable customers rose 17 percent to 261, while the number of customers sending 50 or more tests grew to 10 from five.

The firm's net loss for the quarter narrowed to $1.2 million, or $.89 per share, from $1.6 million, or $1.91 per share, a year ago.

Its R&D costs rose 140 percent to $149,000 from $62,000 in Q2 2015, and its SG&A costs stayed flat at $2.7 million.

CombiMatrix ended the quarter with $5.2 million in cash, cash equivalents, and short-term investments.

The company did not give any guidance for 2016 earnings, however, Burell said on the call that the firm would need to take in $4.9 million to $5.3 million in revenues in order to break even in the fourth quarter.