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Transgenomic's Q4 Revenues Slide 22 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market on Thursday a 22 percent drop year over year in fourth quarter revenues.

For the three months ended Dec. 31, 2010, the Omaha, Neb.-based firm reported revenues of $5.1 million, compared to $6.5 million a year ago. In a statement, the firm said that fourth-quarter 2009 figures included an "exceptionally large" order of Wave instruments for the detection of genetic variation.

The company more than halved its R&D costs to $354,000 during the quarter from $714,000 a year ago. Its SG&A costs rose almost 38 percent to $3.3 million from $2.4 million.

Transgenomic reported a net loss for the quarter of $767,000, or $.02 per share, compared to a profit of $129,000, or $.00 per share, for the fourth quarter of 2009.

In late November, the company acquired the genetic and pharmacogenomic testing and biomarker development business of Clinical Data for $15.5 million. In a statement on Thursday, Craig Tuttle, president and CEO of Transgenomic, said the acquisition is expected to generate $13 million in revenues annually and gives the firm "a much larger presence both with insurers and patients.

"This acquisition also provides us access to higher throughput technologies and an expert staff to aid us in growing our reference laboratory business," he continued.

Revenues for full-year 2010 totaled $20 million, down 9 percent from $22 million for full-year 2009.

Its R&D spending contracted 28 percent to $2.3 million from $3.2 million a year ago, while SG&A spending rose 6 percent to $10.9 million from $10.3 million.

The firm's net loss for the year widened to $3.1 million, or $.06 per share, from $1.9 million, or $.04 per share, a year ago.

Transgenomic said it had $3.5 million in cash and cash equivalents as of Dec. 31.

"We continue to leverage our core instrument business for ongoing instrument sales worldwide, as well as employ our instruments and related expertise in our two laboratory services businesses," Tuttle said. "We anticipate growth in both of our laboratory services businesses and we continue to seek out new assay technologies and tests to license or develop internally to expand our menu offerings for both of these service businesses."