NEW YORK (GenomeWeb News) – GenMark Diagnostics reported after the close of the market on Tuesday that revenues for the first quarter increased 185 percent year over year, led by reagents revenues.
For the period ended March 31, total revenues increased to $2.2 million from $758,000, as product revenues rose to $2.1 million from $693,000 while license and other revenues dropped to $39,000 from $65,000.
According to GenMark, the sharp revenue improvement resulted from an increase in the number of systems placed at customer sites, growth in test menus, and a "significant increase" in the number of tests sold.
Within product revenues, reagent revenues rose 213 percent to $1.9 million from $608,000, and instrument and other revenues spiked 60 percent to $240,000 from $150,000, the Carlsbad, Calif.-based firm said.
During the first quarter, it placed a net 22 analyzers — including eight sales — for a total installed base of 189 analyzers.
Its R&D expenses contracted 27 percent year over year to $1.9 million from $2.6 million. The decrease was due to a non-recurring costs incurred in Q1 2011 related to the move of GenMark's operations from Pasadena, Calif., and the US Food and Drug certification of the Carlsbad facility, as well as lower clinical trial expenses, Richard Slansky, the company's new CFO, said on a conference call after the release of its earnings results.
The firm's SG&A costs rose to $4.0 million from $3.3 million, a 21 percent uptick resulting from revenue, headcount growth, and other corporate expenses, GenMark said.
Its net loss for the quarter was $5.6 million, or $.28 per share, down from a net loss of $6.6 million, or $.56 per share, a year ago.
GenMark ended the quarter with $23.8 million in cash and cash equivalents.
The company continues to progress on the development of its diagnostics test pipeline as well as its next-generation e-Sensor sample-to-answer platform, company officials said. Discussing the platform, GenMark President and CEO Hany Massarany said during the conference call that the goal is to have a prototype instrument in the fourth quarter with a commercial launch slated for late 2013.
Recently, GenMark announced deals with PerkinElmer and Advanced Liquid Logic related to microfluidic technology. Today, Massarany said those deals "will provide us with maximum flexibility as we complete the development of our next-gen platform and its menu."
The initial focus of the new platform will be on multiplexed molecular testing followed by other areas of diagnostics including protein detection and point-of-care testing, he added.
Massarany also said that the firm is laying the groundwork to enter international markets, including obtaining ISO certifications and CE marking, though he noted that GenMark does not have "significant expectations" about revenues it may receive this year resulting from those plans.