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WaferGen Biosystems Q3 Revenues Grow 221 Percent on NGS Library Prep Strength

NEW YORK (GenomeWeb) — WaferGen Biosystems reported today that its third quarter revenues jumped 221 percent year over year primarily due to sales of its recently acquired sequencing library preparation products.

For the three months ended Sept. 30, WaferGen logged revenues of $1.3 million compared to $390,000 in Q3 2013. WaferGen's product revenues increased to $1.1 million from $265,000, while license and royalty revenues were flat at $125,000.

The Fremont, Calif.-based firm said that the spike in sales was primarily due to revenue from its Apollo 324 library prep products, which it acquired in January from IntegenX. WaferGen said that this product line accounted for 46 percent of its product revenue in Q3.

WaferGen said that quarterly sales of its SmartChip Real-Time PCR Systems and SmartChip Target Enrichment Systems increased year over year. These products accounted for 23 percent of product revenue in Q3.

During the recently completed quarter, WaferGen also completed a public offering consisting of common stock and warrants that raised gross proceeds of $20 million. It also appointed Keith Warner as chief operating officer and Michael Henighan as chief financial officer.

"The completion of our common stock offering in August provides the company with the resources to grow our existing business and to fund our critical innovations in molecular diagnostics products for the future," President and CEO Ivan Trifunovich said in a statement. "Moreover, I am excited about Keith Warner and Michael Henighan joining WaferGen. Their experience and proven track records significantly increase the depth and breadth of our management team as we continue to grow WaferGen's business in offering next-gen sequencing solutions in clinical research, testing, and diagnostics."

WaferGen trimmed its net loss to $2.8 million, or $1.02 per share, from $10.8 million, or $43.51 per share, a year ago. The firm used 2,727,810 shares to calculate its loss for the most quarter compared to 281,466 shares in the year-ago period. In June, WaferGen effected a one-for-10 reverse stock split in an effort to list its shares on the Nasdaq Capital Market.

WaferGen's R&D spending increased 19 percent year over year to $1.9 million from $1.6 million, while its SG&A expenses spiked 17 percent to $2.1 million from $1.8 million.

The company finished the quarter with cash and cash equivalents of $17.3 million.