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Transgenomic's Q1 Revenues Slide 4 Percent

NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market Tuesday that its first-quarter revenues fell 4 percent year over year due to a software problem that resulted in reduced sample processing capacity at its New Haven, Conn., lab testing facility.

The Omaha, Neb.-based firm had total revenues of $7.2 million for the three months ended March 31, compared to $7.5 million for the first quarter of 2011.

The company said that it believes full sample processing capacity has been restored at the facility and it expects to complete the sample backlog caused by the software failure by June 2012 in addition to processing the entire volume of samples received during the second quarter. It added that the revenue decrease was partially offset by an increase in instrument deliveries during the quarter.

"We made progress in the first quarter validating and advancing several of our new high-value products, including the NuclearMitome Test, Ice Cold-PCR in circulating tumor cells, and PGxPredict:Clopidogrel response panel," Transgenomic President and CEO Craig Tuttle said in a statement.

Transgenomic posted a first-quarter net loss of $2.7 million, or $.05 per share, compared to a net loss of $2.8 million, or $.06 per share, for Q1 2011.

Its R&D spending was virtually flat year over year at $549,000, compared to $557,000. Its SG&A expenses increased 16 percent to $5 million from $4.3 million.

Transgenomic finished the quarter with $19.3 million in cash and cash equivalents.

During the quarter, the firm raised $22 million in a private placement.

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