NEW YORK (360Dx) – Chembio Diagnostics said after the close of the market on Wednesday that its first quarter revenues rose 8 percent year over year, although product sales were flat.
For the three months ended March 31, the Medford, New York-based company recorded total revenues of $8.3 million, up from $7.7 million a year ago but short of the consensus Wall Street estimate of $8.6 million.
Product sales were stagnant at $6.4 million during the quarter while license and royalty revenues grew 7 percent year over year to $216,191 from $201,931, and R&D and grant revenues increased 55 percent to $1.7 million from $1.1 million.
"The first quarter of 2019 was marked by a number of accomplishments that demonstrate execution across the business," Chembio CEO John Sperzel said in a statement. "We are pleased with our progress toward our three priorities: expanding our commercialization, advancing our R&D pipeline, and preparing for additional growth."
Chembio increased its R&D spending 22 percent to $2.2 million from $1.8 million, while its SG&A costs grew 67 percent to $4.0 million from $2.4 million.
The company's net loss widened to $2.8 million, or $.16 per share, in the recently completed quarter from a net loss of $652,343, or $.05 per share, in Q1 2018. It missed analysts' average estimate of a loss of $.15 per share.
Chembio exited Q1 2019 with $7.4 million in cash and cash equivalents.
Pursuant to the end of Q1, the company reached a deal with the Perseus Science Group for the development of a test for mild traumatic brain injury. Chembio also received approval from Brazilian regulators for its DPP Zika/Dengue/Chikungunya point-of-care system.