Prenatal Microarray Test Volumes and Revenues
Reach Record Levels, Up Year-over-Year 60% and 34%,
Respectively
Total Microarray Revenue Up Sequentially 9% from
Q4 2013 to Q1 2014
CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics
company specializing in DNA-based testing services for
developmental disorders and cancer diagnostics, today announced
record total quarterly revenues of $1.82 million for the first
quarter ended March 31, 2014, up 13 percent from the first quarter
of 2013 and up sequentially 4 percent from the fourth quarter of
2013. The Company's core prenatal microarray test volumes in the
first quarter of 2014 grew 60 percent to a record of 737 tests from
461 tests in the first quarter of 2013. Prenatal microarray revenue
in the first quarter of 2014 was up 34 percent to a record $1.1
million from $836,000 in the first quarter of 2013. The Company
also reported that its customer base continued to grow, reaching
record levels of 150 customers for the first quarter of 2014,
compared to 119 customers in the first quarter of 2013.
Sequentially, prenatal microarray testing revenues in the first
quarter of 2014 grew 9 percent from the fourth quarter of 2013.
Gross margin for the first quarter of 2014 was 44.2 percent, up
from 40.9 percent in the first quarter of 2013.
CombiMatrix President and Chief Executive Officer Mark McDonough
said, "We are pleased that we continue to grow and set records in
what we consider our key metrics: revenues, testing volumes and
number of customers. After nearly rebuilding the entire
organization over the past year and strengthening our balance
sheet, we are currently in an expansion mode and are investing in
our future. We continue to bolster our sales team as we have added
5 new sales representatives toward the end of the first quarter of
2014, bringing us to a total of 12 field sales representatives
currently.
"We are continuing to actively recruit talent in key
metropolitan markets," McDonough continued. "While we are
increasing the size of our sales team, we are concurrently
expanding our geographic reach. We expect production from these
individuals and our various industry and pathology partners to ramp
in the second half of this year, particularly in the fourth quarter
of 2014."
Shortly after the end of the first quarter of 2014, CombiMatrix
strengthened its medical staff with the addition of a new Chief
Medical Officer and a Director of Cytogenetics. Both of these
medical professionals bring outstanding expertise in developmental
disorders and prenatal pathology to the Company's already strong
medical team, McDonough noted.
"We have also recently added two professionals to our billing
and reimbursement staff and are actively recruiting a leader to
drive payer relations. Meanwhile, we are in the early research and
development stage regarding two new complementary products to our
current molecular test offerings. We are excited about how these
new tests will expand and improve our current suite of services,"
McDonough added. "While it will take time to bring all our
resources up to full speed, we believe we have validated our growth
strategy, are gaining traction and executing operationally in areas
that will payoff in the future, while building a strong enterprise
for the long term," concluded McDonough.
Total operating expenses were $3.8 million in the first quarter
of 2014 compared to $3.2 million in the first quarter of
2013. The increase was driven primarily by increased sales and
marketing expenses from expanding the Company's sales force as well
as higher legal defense costs from ongoing litigation.
Net loss was $(2.0 million), or $(0.18) per basic and diluted
share, in the first quarter of 2014, compared to a net loss of
$(0.7 million), or $(0.30) per basic and diluted share, in the
first quarter of 2013. Net loss in the 2013 first quarter
included the effect of a warrant derivative gain of $1.2 million,
which did not repeat in the first quarter of 2014.
Net loss attributable to common stockholders for the three
months ended March 31, 2014 was $(2.0 million), or $(0.18) per
basic and diluted share, compared to a net loss of $(1.3 million),
or $(0.59) per basic and diluted share for the first quarter of
2013, which included the effect of dividends from the issuance of
Series A and B convertible preferred stock.
Cash, cash equivalents and short-term investments totaled $12.5
million as of March 31, 2014 compared to $14.0 million as of
December 31, 2013. Cash used in operating activities was
$(1.57 million) in the first quarter of 2014, compared to $(1.60
million) in the first quarter of 2013. Management believes the
Company has fully mitigated its risk regarding operating as a going
concern and now has sufficient cash resources to last well beyond
2014.
Conference Call
CombiMatrix will host a conference call at 8:00 a.m. Pacific
Time (11:00 a.m. Eastern) today to discuss the first quarter 2014
financial results. To attend the presentation by phone, dial
1-877-407-0784 for domestic callers and 1-201-689-8560 for direct
dial or international callers. To listen to the call via
CombiMatrix's website, go to www.combimatrix.com,
in the Investor/Events section,
(http://investor.combimatrix.com/events.cfm). A
replay of the presentation will be available following the
presentation for 30 days, either via the CombiMatrix website
Investor/Events section
(http://investor.combimatrix.com/events.cfm) or by
dialing 1-877-870-5176 for domestic callers or 1-858-384-5517 for
direct-dial international callers. When prompted, enter playback
pin number 13581243.
About CombiMatrix Corporation
CombiMatrix Corporation provides valuable molecular diagnostic
solutions and comprehensive clinical support to foster the highest
quality in patient care. CombiMatrix specializes in miscarriage
analysis, prenatal testing and pediatric genetics, offering
DNA‑based testing for the detection of genetic abnormalities beyond
what can be identified through traditional methodologies.
CombiMatrix performs genetic testing utilizing a variety of
advanced cytogenomic techniques, including chromosomal microarray,
standardized and customized fluorescence in situ hybridization
("FISH") and high-resolution karyotyping. CombiMatrix is dedicated
to providing high-level clinical support for healthcare
professionals in order to help them incorporate the results of
complex genetic testing into patient-centered medical decision
making. Additional information about CombiMatrix is available at
www.combimatrix.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based upon our current expectations, speak only as of the date
hereof and are subject to change. All statements, other than
statements of historical fact included in this press release, are
forward-looking statements. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "goal," "predicts," "believes," "seeks,"
"estimates," "may," "will," "should," "would," "could,"
"potential," "continue," "ongoing," similar expressions, and
variations or negatives of these words and include, but are not
limited to, statements regarding projected results of operations
and management's future business, operational and strategic plans,
recruiting efforts and test menu expansion. These
forward-looking statements are not guarantees of future results and
are subject to risks, uncertainties and assumptions that could
cause our actual results to differ materially and adversely from
those expressed in any forward-looking statement. The risks
and uncertainties referred to above include, but are not limited
to: our ability to successfully expand the base of our
customers and strategic partners, add to the menu of our diagnostic
tests, develop and introduce new tests and related reports, expand
and improve our current suite of services, optimize the
reimbursements received for our microarray testing services, and
increase operating margins by improving overall productivity and
expanding sales volumes; our ability to successfully accelerate
sales, steadily increase the size of our customer rosters in both
prenatal and developmental genetic testing markets; our ability to
attract and retain a qualified sales force in wider geographies;
our ability to ramp production from our sales force and our
strategic partners; rapid technological change in our markets;
changes in demand for our future services; legislative, regulatory
and competitive developments; litigation; general economic
conditions; and various other factors. Further information on
potential factors that could affect our financial results is
included in our Annual Report on Form 10-K, Quarterly Reports of
Form 10-Q, and in other filings with the Securities and Exchange
Commission. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason, except as
required by law.
TABLES FOLLOW
COMBIMATRIX
CORPORATION |
CONSOLIDATED SUMMARY
FINANCIAL INFORMATION |
(In thousands,
unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2014 |
2013 |
Revenues: |
|
|
Diagnostic services |
$1,790 |
$1,586 |
Royalties |
32 |
25 |
Total revenues |
1,822 |
1,611 |
|
|
|
Operating expenses: |
|
|
Cost of services |
998 |
937 |
Research and development |
134 |
183 |
Sales and marketing |
886 |
641 |
General and administrative |
1,757 |
1,373 |
Patent amortization and
royalties |
32 |
60 |
Total operating expenses |
3,807 |
3,194 |
Operating loss |
(1,985) |
(1,583) |
|
|
|
Other income (expense): |
|
|
Interest income |
5 |
-- |
Interest expense |
(16) |
(302) |
Warrant derivative gain |
-- |
1,199 |
Total other income
(expense) |
(11) |
897 |
Net loss |
$(1,996) |
$(686) |
|
|
|
Deemed dividends from issuing Series B
convertible preferred stock |
$ -- |
$(417) |
Series A convertible preferred stock
dividends |
-- |
(246) |
Net loss attributable to common
stockholders |
$(1,996) |
$(1,349) |
|
|
|
Basic and diluted net income (loss) per
share |
$(0.18) |
$(0.30) |
Deemed dividends from issuing Series B
convertible preferred stock |
-- |
(0.18) |
Series A convertible preferred stock
dividends |
-- |
(0.11) |
Basic and diluted net loss per share
attributable to common stockholders |
$(0.18) |
$(0.59) |
|
|
|
Basic and diluted weighted average common
shares outstanding |
10,926,701 |
2,314,786 |
|
CONSOLIDATED BALANCE
SHEET INFORMATION: |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
|
|
|
Total cash, cash equivalents and short-term
investments |
$12,496 |
$14,036 |
Total assets |
$15,598 |
$16,832 |
Total liabilities |
$2,503 |
$2,168 |
Total stockholders' equity |
$13,095 |
$14,664 |
CONTACT: Company Contact:
Mark McDonough
President & CEO, CombiMatrix Corporation
Tel (949) 753-0624
Media Contact:
David Schull or Lena Evans
RussoPartners LLC
(212) 845-4271
david.schull@russopartnersllc.com
lena.evans@russopartnersllc.com
Investor Contact:
Rene Caron
President
Allen & Caron Inc
(949) 474-4300
rene@allencaron.com
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