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Nanogen's Q4 Revenues Dip 3 Percent as Cash Dwindles

NEW YORK (GenomeWeb News) – Nanogen reported after market close on Friday that its fourth-quarter revenues decreased 3 percent, as the firm's cash reserves have dipped to $3.1 million.

The San Diego-based molecular diagnostics company released its preliminary results and said that it had deferred the audit of its financial statements for the year ended Dec. 31, 2008, in an effort to conserve cash. It noted that this move means it will not file its 10-K with the US Securities and Exchange Commission by the deadline of March 31.

Nanogen brought in revenues of $9.5 million for the three-month period ended Dec. 31, down from revenues of $9.8 million for the comparable period of 2007. Its product sales declined slightly to $5.6 million from $5.9 million, and its license fees and royalty income dropped to $1.6 million from $1.8 million, while its contracts and grants revenue increased to $2.4 million from $2.1 million.

Nanogen's net loss for the quarter fell sharply to $2 million, or $.02 per share, from $6.5 million, or $.09 per share.

The firm's R&D expenses were flat year over year at $4.9 million, while its SG&A spending declined 22 percent to $6.9 million from $8.9 million.

For full-year 2008, Nanogen's revenues increased 23 percent over the prior year to $46.9 million from $38.2 million.

The company's net loss increased 12 percent to $38.1 million, or $.49 per share, from $33.9 million, or $.47 per share. Nanogen cut its R&D expenses for 2008 to $18.7 million from $26.5 million the year before, and also cut its SG&A spending to $32 million from $38.2 million.

"Our strategy and related restructuring has clearly improved the performance of our business," said Howard Birndorf, chairman and CEO of Nanogen, in a statement. "However, our available cash resources are not adequate to support our 2009 plan and therefore, we are aggressively continuing our efforts with Cowen & Co. to identify and evaluate strategic opportunities for our business."

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