NEW YORK — SQI Diagnostics on Monday posted a nearly 63 percent year-over-year drop in fiscal first quarter revenues amid a production equipment issue and the impact of the company's exit from its life sciences business.
For the first quarter of its fiscal year ending Sept. 30, 2022, SQI reported revenues of C$60,000 (US$47,356), compared with revenues of C$160,000 in the same period a year earlier. The Toronto-based company attributed the shortfall to a production equipment issue that impacted shipment of products during the quarter, as well as its decision to move on from its life sciences business to focus on its lung health offerings and related services.
SQI had a fiscal Q1 gross profit of C$50,000 in the quarter, versus a profit of C$100,000 in the year-ago quarter.
Its R&D spending was down 6 percent to C$1.7 million from C$1.8 million, while its SG&A costs dipped to C$1.7 million from C$1.8 million on lower sales-related expenses and consulting costs.
At the end of 2021, SQI had cash and cash equivalents of C$3.4 million.
"SQI continues to make new acquisitions and position itself for growth in new lines of business," SQI CEO Andrew Morris said in a statement. "We are excited to attract a broader array of new customers, to engage in more cross-selling opportunities, and use accretive acquisition to support the aggressive launch of our lung health products."
In January, SQI agreed to acquire Precision Biomonitoring's SARS-CoV-2 testing business and related molecular diagnostic technology for $6.825 million in cash and stock.