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Transgenomic's Q4 Revenues Increase 69 Percent

NEW YORK (GenomeWeb News) – Transgenomic today reported 69 percent revenue growth year over year for the fourth quarter.

For the period ended Dec. 31, 2011, the Omaha, Neb.-based firm posted $8.6 million in revenues, up from $5.1 million a year ago. The Clinical Labs business recorded $4.6 million in revenue, Diagnostic Tools saw $3.5 million in revenues, and Pharmacogenomics had $500,000 in revenues.

Its R&D costs increased 60 percent to $568,000 from $354,000 a year ago, and SG&A costs rose 48 percent to $4.9 million from $3.3 million.

A net loss of $767,000, or $.02 per share, in Q4 2010 was turned into a profit of $263,000, or break-even on a per-share basis, in Q4 2011.

For full-year 2011, Transgenomic saw revenues climb to $32 million, up 60 percent year over year from $20 million in 2010. Clinical Labs revenue came in at $16 million, Diagnostic tools had $13.7 million, and Pharmacogenomics had $2.3 million.

Transgenomic decreased R&D spending 4 percent year over year to $2.2 million from $2.3 million but increased SG&A spending 76 percent to $19.2 million from $10.9 million.

The company had a net loss of $9.8 million, or $.22 per share, compared to a net loss of $3.1 million, or $.06 per share, in 2010. Transgenomic attributed the increase in net loss to an interest expense of $1 million and non-cash charges for preferred-stock valuation of $6.1 million, as well as amortization related to acquired intangibles and stock option expenses.

The firm ended 2011 with $4.9 million in cash and cash equivalents.

In a statement, Transgenomic President and CEO Craig Tuttle said that the year-over-year growth in 2011 reflected improvement in the firm's clinical reference lab and pharmacogenomics lab businesses.

He added that in 2012 Transgenomic will focus on building momentum behind recently launched products, including its PGXPredict:Clopidogrel Panel for evaluating patient response to the anti-platelet drug, also known by its brand name Plavix. The company also plans on expanding partnerships in cancer research.

"As always, we will continue to focus on the successful integration of new products and technologies and expansion into new markets, all while managing toward the bottom line," Tuttle said.

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