NEW YORK (GenomeWeb News) – Rosetta Genomics today posted a fourth-quarter 2008 profit of $1.1 million, or $.09 per share, due to a $5.6 million capital gain recognized during the three-month period ended Dec. 31.
The Rehovot, Israel-based microRNA products firm reported revenues of $806,000 for the quarter compared to no revenues for the comparable period a year ago. Its profit was the result of $7.4 million it received from Credit Suisse for the repurchase of the firm's Auction Rate Securities as part of a settlement between that bank and the New York State Attorney General and the North American Securities Administrators Association Task Force.
The capital gain Rosetta recorded during the quarter was due to the reversal of an impairment charge related to the ARS that the firm took in 2007.
Rosetta's R&D expenses for the quarter were flat with the year before at $2.1 million, while its SG&A spending rose 36 percent to $1.9 million from $1.4 million. The fourth-quarter results also include an $850,000 impairment charge related to its acquisition last summer of Parkway Clinical Laboratories.
The firm launched its first three microRNA-based tests during the fourth quarter.
For full-year 2008, Rosetta had revenues of $1.5 million and posted a net loss of $9.5 million, or $.79 per share, compared to a net loss of $14.7 million, or $1.32 per share, for 2007.
Rosetta's R&D spending for the year increased 36 percent to $8.7 million from $6.4 million, and its SG&A spending rose 33 percent to $6.1 million from $4.6 million.
The firm finished the year with $14.5 million in cash and cash equivalents.
Rosetta said that it believes its cash burn for 2009 will be around $10 million, not including the potential beneficial impact of new distribution partnerships. It also said that it believes its cash resources are sufficient to fund operations until mid-2010.
The firm noted that it "may pursue sources of additional funds during 2009, which may include funds generated through strategic collaborations or through equity financing."