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No Revenues in Q3 for SQI

NEW YORK (GenomeWeb News) – SQI Diagnostics reported after the close of the market on Tuesday that it had no revenues for its fiscal third quarter, compared to C$9,000 (US$9,064) from the year-ago period.

In documents filed with SEDAR, the Canadian financial information filing system, Toronto-based SQI said that the revenue drop resulted from one customer, Gamma Dynacare Medical Labs, choosing not to purchase QuantiSpot RA test kits in the quarter. Subsequent to the end of the third quarter, GDML reordered the kits.

The firm's R&D spending was more than halved to C$672,000 from C$1.4 million a year ago, while its SG&A costs were reduced to C$528,000 from C$869,000. Both reductions resulted from a realignment of the business announced in late 2011, which included the elimination of 14 positions, SQI said in its filing. Also, professional and consulting costs were higher in the year-ago period due to costs related to a failed bid to acquire Scienion and a proposed US IPO, it added. Both plans were abandoned by the company eventually.

SQI also completed an audit of Scientific Research and Experimental Development claims for the 2008, 2009, and 2010 fiscal years, and as a result took a C$204,000 investment tax credit in the recently completely quarter.

For the three months ended June 30, 2012, the microarray-based diagnostics firm posted a net loss of C$1.6 million, or C$.04 per share, compared to a net loss of C$2.6 million, or C$.08 per share, a year ago.

In a statement, SQI said that it continues to move its celiac quantitative assay, the vasculitis quantitative assay, and the cytokines quantitative assay through the verification and/or final development stage.

SQI finished the quarter with about C$6.0 million in assets, with C$4.9 million in working capital. It said that it has enough cash on hand to fund operations and commercialization plans for at least the next 12 months.