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Diagnostic Services Drive up CombiMatrix Q3 Revenues 15 Percent

NEW YORK (GenomeWeb News) – CombiMatrix on Tuesday reported a 15 percent increase in revenues for its third quarter, driven by an increase in diagnostic service revenues.

The Irvine, Calif.-based company said in its Form 10-Q filed with the US Securities and Exchange Commission that for the three months ended Sept. 30, revenues totaled $1.5 million, up from $1.3 million a year ago. Diagnostic service revenues were up to almost $1.5 million from $1.1 million a year ago, offsetting a drop in royalties to $35,000 from $47,000 and no clinical trial support service revenues for the recently completed quarter, compared to $195,000 during Q3 2012.

Within diagnostic services, CombiMatrix recorded 1,438 billable tests, up from 1,356 a year ago, while revenues per test shot up to $1,021 from $776. The company attributed the sharp rise in revenues per test to a shift in test mix. In the recently completed quarter, there was a higher concentration of microarray testing, which are priced and reimbursed at "significantly higher rates" than the firm's non-array tests.

Microarray testing increased especially in the prenatal testing market, it said, adding that a rise in prenatal testing offset a reduction in oncology and pediatric testing.

CombiMatrix posted a net loss of $1.4 million, or $.30 per share, in the third quarter, compared to a net loss of $1.3 million, or $1.25 per share, a year ago. The company used about 4.5 million shares to calculate the net loss per share figure in Q3 2013, compared to 1.1 million shares in the year-ago period.

In July, it raised $1.2 million from a sale of its Series C Preferred Stock, following a raise of $1.2 million in May from a sale of Series C convertible preferred stock.

CombiMatrix cut its R&D spending 21 percent in the quarter to $247,000 from $311,000, but increased its SG&A spending 13 percent to $1.8 million from $1.6 million.

It ended the quarter with $4.0 million in cash and cash equivalents.

Company highlights in the quarter included it regaining compliance with a Nasdaq listing requirement of at least $2.5 million in stockholders' equity. In August, CombiMatrix and Sequenom announced a deal to market chromosomal microarray analysis testing services.

It also has inked several payor agreements, including one announced on Tuesday with Blue Cross and Blue Shield of Kansas City. In October it signed a deal with Three Rivers Provider Network, and during the summer it reached an agreement with Blue Shield of California.