NEW YORK (GenomeWeb) – Cancer Genetics reported after the close of the market on Thursday a 15 percent jump in first quarter revenues on strong growth across all of its business segments.
For the three-month period ended March 31, CGI's total revenues rose to $7 million from $6.1 million in the same period a year earlier. Its biopharma services segment contributed $3.7 million, up 11 percent from $3.4 million in Q1 2016, while revenues from clinical services were up 20 percent to $3 million from $2.5 million. The firm's discovery services business contributed an additional $293,000 in revenue for the first quarter of 2017, a 12 percent increase over the year-ago quarter.
"We are continuing to scale our revenue while making significant operational improvements as we execute on our vision to become the preeminent oncology diagnostics partner for biopharma companies, cancer centers, and clinicians," CGI President and CEO Panna Sharma said in a statement. "Our team is actively working with nine of the top 10, and 16 of the top 20 biopharma companies where we are providing critical molecular information and testing to help with clinical trials, and, in many cases, developing innovative new tests and technologies to help improve patient diagnosis and monitoring."
CGI also noted that it has increased the number of clinical studies and trials it is supporting to 140, a 12 percent increase from the fourth quarter of 2016.
CGI's net loss in the quarter jumped to $9.6 million, or $.51 per share, from $5.3 million, or $.39 per share, last year. The company attributed this increase in part to non-cash charges of $7.5 million related to a change in fair value of derivative instrument in the first quarter of this year. On an adjusted basis, the company's net loss dropped to$2.1 million, or $.11 a share, from $5.3 million, or $.39 a share, in Q1 2016.
CGI's first quarter R&D spending fell nearly 27 percent to $1.1 million from $1.5 million, while SG&A costs dropped 21 percent to $4.4 million from $5.6 million. The firm said that the decrease in operating costs was primarily driven by headcount reduction, reorganization of technology and test development efforts, and benefits from shared services with its team in Hyderabad, India.
At the end of the first quarter, CGI had cash and cash equivalents totaling $9.7 million.
During early Friday morning trading on the Nasdaq, shares of CGI were down almost 5 percent at $3.90.