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GeneNews Q1 Revenues up Sharply

NEW YORK (GenomeWeb) – Canadian molecular diagnostics firm GeneNews today reported a steep increase in its first quarter revenues.

For the three months ended March 31, the Toronto-based firm said that revenues improved to C$201,852 (US$185,445) from C$48,348 in the year-ago quarter. All revenues in the recently completed quarter were generated from royalty payments. GeneNews recorded no test revenues in Q1 2014 compared to C$912 in Q1 2013.

In a statement, though, the company noted that its joint venture Innovative Diagnostic Laboratory processed 14,680 ColonSentry colorectal cancer tests in the first quarter. However, IDL, formed last summer, does not yet have a history of collections of invoice test revenue and recognizes revenue only when payment is received from customers. Because of the lag time between test processing and receipt of payment, IDL's Q1 2014 test volumes are not fully reflected in its financial results, GeneNews said.

GeneNews Executive Chairman James Howard-Tripp added that in April, IDL processed about 13,600 tests. "In order to support the continuing build in sales volume, the laboratory is increasing its processing capacity from approximately 250 tests per day at the end of 2013 to more than 800 per day for June 30, 2014," he said in a statement.

GeneNews' net loss for the quarter was C$1.8 million, or C$.04, compared to a net loss of C$1.5 million, or $.07 per share, a year ago.

Its R&D spending went to zero from C$502,766 a year ago, while its SG&A costs were up 11 percent year over year to C$1 million from C$885,185.

GeneNews finished the quarter with C$1.3 million in cash and cash equivalents.