NEW YORK — Cancer Genetics today reported a 15 percent increase in second quarter revenues on improved performance by its core discovery services operations.
For the three-month period ended June 30, CGI's revenues climbed to $1.5 million from $1.3 million. The Rutherford, New Jersey-based company's reported revenues were generated entirely from discovery services following the recent sales of its biopharma services business to Interpace Diagnostics for $23.5 million and its clinical laboratory business to siParadigm for $1 million.
Both divested businesses were presented as discontinued operations in CGI's quarterly report.
"Through the completion of the sale of our biopharma business to Interpace … we were able to eliminate approximately $9.0 million in senior debt, and with the additional divestiture of our clinical laboratory business to siParadigm, we were able to put an initial $3.0 million of cash on the balance sheet in July 2019 to create a runway to drive potential value for our stakeholders," CGI CEO John Roberts said in a statement. "We are now focused on collecting cash that is due to the company, substantially reducing our accounts payable with our unsecured creditors, focusing on the operational elements of our Discovery Services business, and continuing to explore strategic options, which could include the sale of other assets, a merger, reverse merger, or other strategic transactions."
CGI had planned to merge with Israeli precision oncology firm NovellusDx, but that deal was scuttled last December. The divestitures occurred following the collapse of that deal.
CGI posted a net loss of $3.8 million, or $.07 per share, for the second quarter versus a net loss of $3.6 million, or $.13 per share, in the same period a year earlier.
The firm's Q2 R&D spending dropped 56 percent to $7,000 from $16,000 year over year, while SG&A expenses fell nearly 16 percent to $1.6 million from $1.9 million.
At the end of the quarter, CGI had cash and cash equivalents totaling $667,000.