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Rosetta Genomics' 2011 Revenues Fall 63 Percent

NEW YORK (GenomeWeb News) – Rosetta Genomics said in a regulatory document that revenues for full-year 2011 dropped 63 percent year over year.

In its Form 10-K filed with the US Securities and Exchange Commission today, the Israel-based molecular diagnostics firm said that revenues for 2011 came in at $103,000, down from $279,000 in 2010, due primarily to its former distributor in the US ending sales of Rosetta products in late 2010.

Rosetta did not disclose the name of the distributor in its SEC document, but in November 2010, it settled an outstanding arbitration with Prometheus Laboratories regarding the commercialization rights to Rosetta's microRNA-based tests.

The firm, which announced a restructuring in the fall, reduced R&D spending 40 percent year over year to $3.4 million from $5.7 million, and cut SG&A costs 30 percent to $5.1 million from $7.3 million.

Its net loss for 2011 was $8.8 million, or $1.16 per share, down from a net loss of $14.8 million, or $3.49 per share, a year ago.

The company finished 2011 with $735,000 in cash and cash equivalents and $37,000 in restricted cash.

Rosetta is currently not in compliance with a Nasdaq requirement that calls for a minimum share bid price of $1 and has until May 29 to regain compliance. Additionally, it said in its Form 10-K that it anticipates being warned by Nasdaq that it does not fulfill another Nasdaq listing requirement of a minimum stockholders' equity of $2.5 million. As of Dec. 31, 2011, Rosetta had a stockholders' deficiency of $356,000, it said.

Last month, it said that it would not receive a $1.25 million payment after failing to reach a licensing deal with an unnamed lender which had provided Rosetta $1.75 million in a private placement raise.

Rosetta also noted that its existing funds are only sufficient enough to support its operations until late May 2012.