NEW YORK (GenomeWeb News) – Genetic testing company Interleukin Genetics reported after the close of the market on Wednesday a 45 percent drop year over year in its third-quarter revenues.
Total revenues during the quarter fell to $420,011 from $765,416 as genetic testing service revenues fell to $383,064 from $731,194 a year ago, a 48 percent decrease. Other revenues inched up 8 percent to $36,947 from $34,222.
According to the Waltham, Mass.-based firm, the drop in genetic test revenues resulted from a decrease in genetic tests returned and processed, as well as lower sales of its Inherent Health brand of genetic tests through its Merchant Network and Channel Partner Agreement with Amway Global.
Deferred revenue — defined as cash from genetic tests to be processed and returned — increased about 18 percent since the end of 2011 to approximately $971,000 as of Sept. 30, Interleukin said.
The company reduced its R&D spending 24 percent year over year to $245,736 from $324,669. Its SG&A spending was virtually flat year over year at $1.1 million.
Interleukin had a net loss of $1.3 million, or $.03 per share, compared to a net loss of $1.1 million, or $.03 per share, for the third quarter of 2011.
The company had $2.5 million in cash and cash equivalents at the end of the quarter and said that it expects it has enough financial resources to maintain its current as well as planned operations at least through Nov. 30, when its credit facility with Pyxis Innovations is due.
Interleukin is negotiating with Pyxis to extend the due date, and if it is successful, its cash position will keep it operational through at least March 31, 2013, the company said.