NEW YORK (GenomeWeb News) – Transgenomic reported after the close of the market Wednesday that its revenues in the third quarter had slipped 5 percent year over year.
Total revenues for the three months ended Sept. 30 dropped to $7.9 million from $8.3 million a year ago, as growth in the company's Clinical Laboratories segment was offset by a decline in the Pharmacogenomics Services and Diagnostic Tools segments, the Omaha, Neb.-based firm said.
The company said the decline in Pharmacogenomics Services was due to a lower volume of projects performed for pharmaceutical clients, adding that its Diagnostic Tools segment was down because a higher percentage of its sales were through its European distribution partner at distributor prices.
The company's net loss for the quarter more than doubled, rising from $1.3 million, or $.03 per share, in the year-ago period to $2.8 million, or $.04 per share, for Q3 2012.
Transgenomic's R&D spending swelled 30 percent during the quarter to $668,000 from $515,000 a year ago, while its SG&A spending jumped 27 percent to $5.6 million from $4.4 million.
Transgenomic ended the quarter with $4.7 million in cash and cash equivalents, and $4 million in short-term investments.
"The third quarter saw a decline in top and bottom line numbers, however we continued to see top-line growth in our Clinical Laboratories unit, which is up by 17 percent on a year-to-date basis versus last year," company executive VP and CFO Mark Colonnese said in a statement.
"This group is benefiting from our investment in the expansion and roll-out of a number of our proprietary tests, including the C-GAAP, ScoliScore and NuclearMitome tests. We anticipate realizing significant growth in this unit over the coming quarters."
Transgenomic President and CEO Craig Tuttle noted that at the end of the third quarter the company expanded its genetic testing portfolio with the acquisition of the ScoliScore multi-gene prognostic test for scoliosis. He also said that the firm is continuing to invest in researching ways to apply its Ice Cold-PCR technology for detecting mutations from a range of samples.
"These investments, we believe, provide for longer-term value not only in our tests, technologies, and laboratory services, but for our Pharmacogenomics Services and Tools segments as well," Tuttle said.