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CombiMatrix's Q2 Revenues Rise 51 Percent; Names New CEO

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – CombiMatrix today reported a 51 percent increase in its second-quarter 2010 revenues while naming a new CEO.

The Irvine, Calif.-based firm, which is near completion of its restructuring, brought in total revenues of $916,000 for the three-month period ended June 30, compared to $606,000 for the second quarter of 2009. Of that total, $796,000 came from services and $120,000 from products.

Over the past four months, CombiMatrix has been restructuring its business, which has included shutting down its CustomArray business and closing its Mukilteo, Wash.-based offices; moving its headquarters to Irvine; refocusing the business on its molecular diagnostics services; and replacing its CEO.

Today, the firm announced that Judd Jessup will serve as its new CEO and as a member of the board of directors, effective Aug. 23. Jessup previously was CEO of cancer diagnostics and genetic testing services firm US Labs. He replaces Amit Kumar, who announced in April that he would step down once a successor was named.

CombiMatrix noted in a statement that it had completed its relocation to Irvine a month ahead of schedule, and that its estimate for restructuring costs had dropped to $975,000 from its previous expectations of $1.5 million.

The firm said in a filing with the US Securities and Exchange Commission today that its business will now focus primarily on its diagnostics services business, which will include increasing utilization of its existing tests, expanding its test menu, increasing the number of partners and customers, and seeking to improve reimbursement for its testing services.

As a result of a goodwill impairment charge of $16.9 million, CombiMatrix posted a net loss for the quarter of $24.8 million, or $3.27 per share, compared to a net loss of $4.6 million, or $.66 per share, for Q2 2009.

Its R&D expenses increased to $725,000 from $699,000 year over year, while its SG&A spending jumped to $2.2 million from $1.7 million.

CombiMatrix finished the quarter with $10.2 million in cash and cash equivalents. The firm said that it has enough cash to support its operations beyond the next 12 months.