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Complete Genomics' Q2 Revenues Rise 47 Percent

NEW YORK (GenomeWeb News) – Complete Genomics reported after the close of the market on Wednesday a 47 percent increase in revenues year over year for the second quarter, beating the average analyst estimate on the top and bottom line.

The Mountain View, Calif.-based sequencing services company recorded $8.7 million in revenues for the three months ended June 30, up from $5.9 million a year ago, topping the consensus Wall Street estimate of $7.7 million.

During the quarter, it delivered 2,200 genomes, including about 100 non-revenue generation genomes for its clinical validation study with Mayo Clinic and its cancer grant programs, Complete Genomics said. It recognized revenues for more than 2,100 genomes including 200 genomes that were shipped in the first quarter but which were awaiting recognition.

"In addition to servicing our existing research customers, we made significant progress in establishing our clinical offering," Chairman, President, and CEO Clifford Reid said in a statement. He added that the company submitted an application for a CLIA license at the end of July to operate a clinical laboratory and expects to receive the license in the coming months.

Complete Genomics ended the quarter with a backlog of about 4,600 revenue-generating genomes, including 1,000 genomes booked in the second quarter, representing aggregate potential revenues of $22 million. In the third quarter it anticipates delivering more than 2,200 genomes to revenue and non-revenue generating customers.

The firm's R&D spending was $8.9 million, an 11 percent increase from $8.0 million a year ago, while its SG&A costs were up 24 percent to $8.2 million from $6.6 million.

Complete Genomics' net loss for the quarter was $18.8 million, or $.55 per share, compared to a net loss of $16.0 million, or $.56 per share, a year ago. Wall Street estimated a net loss of $.58 per share.

The recently completed quarter includes a cost of $1.5 million associated with a restructuring of operations announced in June, which includes layoffs of 55 employees. The company also hired Jefferies & Company as a financial advisor to help review strategic alternatives, including a possible merger, business combination, equity investment, or sale.

Complete Genomics did not hold a conference call to discuss its earnings results due to the ongoing review.

It said it had $39.3 million in cash and cash equivalents as of June 30.

Last month, a Nature study described a new technology from Complete Genomics called Long Fragment Read that the company said improves the accuracy of whole-genome sequencing in dramatic fashion. It said it plans to incorporate the technology into its sequencing offerings in early 2013.

In Thursday morning trade on the Nasdaq shares of Complete Genomics were up 12 percent at $2.63.