NEW YORK – Oncocyte said after the close of the market on Wednesday that it is realigning its operations and implementing cost reduction programs to prioritize near-term revenue generators and better manage and preserve its cash.
The strategy includes reducing its workforce, which is expected to decrease the firm's operating costs by more than $4.5 million annually. Layoffs started on Aug. 8 and are set to be completed by Sept. 30, the Irvine, California-based company said in a Form 8-K filed with the US Securities and Exchange Commission.
It added in a press release that through reprioritization efforts and strategic activities, along with the headcount reduction, operating costs are expected to be trimmed by about $12 million in 2023 compared to 2022.
Oncocyte also said on Wednesday that its second quarter revenues rose 5 percent to $2.1 million from $2 million a year ago, falling short of the consensus Wall Street estimate of $2.7 million.
It noted that it received a $1 million milestone payment during Q2 from the final delivery of the DetermaRx lung cancer test to its Chinese partner Burning Rock.
The company had a net loss of $8.3 million, or $.07 per share, for the three months ended June 30 compared to a net loss of $10.5 million, or $.12 per share, a year ago. Its R&D costs more than doubled year over year to $5.6 million from $2.5 million, while its SG&A costs retreated 15 percent to $9.0 million from $10.6 million.
The firm ended Q2 with $44.8 million in cash and cash equivalents, $1.7 million in restricted cash, and $579,000 in marketable equitable securities.