NEW YORK (360Dx) – Vermillion reported after the close of the market on Thursday that its second quarter revenues were down 21 percent year over year.
For the quarter ended June 30, the company reported total revenues of $708,000, down from $898,000 a year ago. Product revenues were down 27 percent to $627,000 from $860,000 in Q2 2017. The company posted $81,000 in service revenue, up 113 percent from $38,000 in the year-ago quarter.
Vermillion performed 1,884 OVA1 tests in the quarter, down 22 percent from 2,418 OVA1 tests performed in Q2 2017.
The company said in a statement that the drop in test sales was due to "the loss of a significant client bill customer in Q3 2017, as well as reductions in volume in uncovered territories."
On a conference call following the release of the earnings report, Vermillion President and CEO Valerie Palmieri noted several initiatives the company is launching in an effort to turn around its flagging OVA1 business. She announced an effort to develop a new decentralized testing platform and cloud service for OVA1 that she said will allow customers in hospital systems, regional labs, and large OB GYN practices to more easily access the test.
She also said the company plans to launch a "new reflex clinical care pathway" that uses OVA1 and Vermillion's second-generation ovarian cancer test, Overa, in combination, which, Palmieri said, will allow users to benefit from the former's sensitivity and the latter's specificity.
Palmieri gave updates on Vermillion's planned expansion into the Philippines and Israel, noting that the company has enrolled 151 of a planned 380 subjects for a prospective validation study of Overa in the Philippines and is about to launch a 240-patient validation study of Overa in Israel.
While OVA1 test volumes were down in the quarter, Vermillion CFO Bob Beechey said revenues per test were up 15 percent to $333 from $287 in Q2 2017. The $287 figure represents the price per test had the figure been calculated on a GAAP basis in Q2 2017 as it was in Q2 of this year. On the non-GAAP basis the company reported in its Q2 2017 earnings report, price per test was $356 in Q2 2017.
Vermillion's net loss for the quarter grew to $3.0 million, or $.04 per share, from $2.4 million, or $.04 per share, in Q2 2017.
The company's R&D expenses for Q2 were $154,000, down 42 percent from $268,000 in Q2 2017. Its SG&A expenses rose 22 percent to $2.8 million from $2.3 million in the same period last year.
Vermillion ended the quarter with $14.1 million in cash and cash equivalents.
Last month, the company received a delisting warning from Nasdaq indicating that it has failed to meet the requirement that its common stock maintain a minimum closing price bid of $1 per share.
In morning trading on Nasdaq, Vermillion shares were flat at $.60.