NEW YORK (GenomeWeb News) – CombiMatrix reported after the close of the market Tuesday that its first-quarter revenues fell 13 percent, with its government contracts and products revenues both declining year over year.
The Mukilteo, Wash.-based firm said that its total revenues for the three-month period ended March 31 were $1.3 million compared to $1.5 million for the first quarter of 2009. Its government contracts sales dropped to $200,000 from $525,000, while its products sales fell to $204,000 from $257,000. However, its services revenues increased to $788,000 from $696,000.
CombiMatrix posted a second-quarter profit of $15.3 million, or $1.96 per share, for the quarter, due to a $19.4 million payment it received to settle litigation with National Union Fire Insurance Company. In comparison, it posted a net loss of $6.1 million, or $.97 per share for Q1 2009.
Its R&D expenses for the quarter increased 36 percent year over year to $1.5 million from $1.1 million, while its SG&A spending declined 4 percent to $2.7 million from $2.8 million.
CombiMatrix recently announced that it would restructure its operations, which includes layoffs, moving its headquarters to California, and finding a new CEO. Its plan is to focus its operations on its diagnostics business, which President and CEO Amit Kumar said in a statement today "produced its best quarter ever and demonstrated strong growth relative to the previous quarter and the previous year's first quarter."
Revenues for that segment were 13 percent higher than Q1 2009, the firm said.
Kumar added that the goals of the restructuring "are to reduce cash burn and accelerate the timeline to sustainable profitability. Whenever such cost-cutting measures are enacted, one sacrifices some future opportunities.
"Therefore, our board and management have identified what segments of our business provide the greatest near-term opportunities to increase revenue and achieve profitability," he added. "All other projects that require capital have either been eliminated or have been postponed until operating cash flows can fund them."
CombiMatrix finished the quarter with $13.5 million in cash and cash equivalents.