NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market on Thursday that sales in the first quarter rose 39 percent year over year to $7.5 million from $5.4 million.
The Omaha, Neb.-based company attributed the increase to its acquisition of the Familion family of genetic tests from Clinical Data at the end of 2010, though it did not disclose how much in revenue that business generated during the quarter.
In a statement, Craig Tuttle, president and CEO of Transgenomic, said that in the second quarter the company will finalize the integration of two CLIA-certified reference laboratories – its own and Clinical Data's – into a single laboratory.
"We also expect improvement in our neurology testing business by expanding coverage under the managed care contracts, which we secured with the Familion transaction," Tuttle said.
He added that Transgenomic saw an increase in testing volume in its pharmacogenomics testing business, though he did not elaborate. The total number of projects being carried out, the project pipeline, and the number of new contracted projects all increased during the quarter, he said.
"This will continue to fuel growth in our pharma services business both due to our expertise in mutation profiling for cancer drug trials and data for [US Food and Drug Administration] submission, as well as for new projects employing our Ice COLD-PCR and recently discovered BLOCker-Sequencing technologies," Tuttle said.
The company scaled back its R&D spending in the quarter to $557,000, down 33 percent from $827,000 a year ago. Its SG&A expenses increased 79 percent to $4.3 million from $2.4 million. The increase in operating expenses was directly related to Transgenomic's Familion lab, including non-cash charges of $300,000 due to amortization of the acquired intangibles, it said.
The company posted a net loss of $2.8 million, or $.06 per share, compared to a loss of $324,000, or $.01 per share, a year ago.
Transgenomic ended the quarter with $3.2 million in cash and cash equivalents.