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Applied DNA Sciences Fiscal Q1 Revenues Jump on COVID-19 Testing

NEW YORK — Applied DNA Sciences on Thursday posted a 163 percent year-over-year increase in fiscal first quarter revenues on growing clinical laboratory service revenues tied to COVID-19 testing.

For the three-month period ended Dec. 31, 2021, Applied DNA's revenues were $4.2 million compared with $1.6 million in the same quarter a year earlier.

Revenues from clinical laboratory services jumped over 300 percent to $3.2 million, including $2.4 million generated through the firm's SafeCircle COVID-19 testing program, versus $772,770 in the year-ago quarter. Product revenues rose 50 percent to $826,311 from $550,097, primarily due to higher sales of DNA concentrate to protect a textile supply chain, which offset lower sales of Applied DNA's Linea 1.0 COVID-19 assay kit.

"Growth in our top line was driven principally by higher demand for COVID-19 testing that was further catalyzed by the emergence of the Omicron variant and due to the final shipment of molecular taggant under a previously awarded $1.6 million order to tag textile fibers," Applied DNA CEO James Hayward said in a statement.

Applied DNA's fiscal Q1 net loss decreased to $4.7 million, or $.63 per share, from $4.8 million, or $.88 per share.

R&D spending in the quarter rose 41 percent to $1.1 million from $763,808 the year before as Applied DNA continued development of its LinearDNA platform as an alternative to plasmid DNA for the manufacture of nucleic acid-based therapeutics. SG&A costs jumped 42 percent to $4.7 million from $3.3 million, in part due to stock-based compensation expenses and an annual non-employee board of director grant.

At the end of the quarter, Stony Brook, New York-based Applied DNA had cash and cash equivalents totaling $2.7 million.

"Looking ahead, we believe we are well-positioned for continued growth as investments in our clinical testing and services offering continue to yield growth," Hayward said. "Testing momentum continued into the second quarter and contributed most of unaudited January revenues of approximately $2.0 million, and we anticipate higher demand from our largest [COVID-19] testing client."

"Longer term, we are working to ensure that our investments to support COVID-19 testing serve as the foundation for a stable and profitable clinical lab business based on a more diversified offering of molecular and genetic tests that parallel the therapeutic objectives for LinearDNA," he added.

During early morning trading on the Nasdaq Friday, shares of Applied DNA fell 9 percent to $2.82.