NEW YORK (GenomeWeb) – Cancer Genetics today reported a 10 percent increase in its first quarter revenues on improved performance by its discovery services unit.
The molecular diagnostics firm also said it remains on track with a previously announced review of strategic opportunities, and that the consolidation of its West coast molecular profiling lab — as well as the relocation of most of that facility's services to labs in New Jersey and North Carolina — is expected to wrap up in September.
For the three-month period ended March 31, CGI's revenues climbed to $7.7 million from $7.0 million in the same quarter the year before. Biopharma services revenues remained flat year-over-year at $3.7 million, while clinical services revenues dropped 23 percent to $2.3 million from $3 million.
Revenues from the company's discovery services operations, however, surged to $1.7 million from approximately $300,000 in the first quarter the year before, in part reflecting a full quarter of revenues from recently acquired contract research organization VivoPharm.
CGI's Q1 net loss dropped to $4.5 million, or $.16 per share, from $9.6 million, or $.51 per share, a year earlier.
R&D spending fell 39 percent to $681,000 from $1.1 million, while SG&A expenses rose 57 percent to $6.9 million from $4.4 million — an increase CGI attributed to expenses from the VivoPharm acquisition and the ramp-up of clinical sales activities, among other costs.
At the end of the first quarter, CGI had cash and cash equivalents totaling $4.0 million.
"Overall, we are pleased with the advancements we have made since the beginning of 2018," CGI CEO John Roberts said in a statement. "We are continuing to leverage synergies and implement strategies aimed at accelerating growth, while reducing expenses associated with non-core activities."
In conjunction with its strategic review, CGI has been working in recent months on a plan to improve revenues and cash collections, while reducing costs. In addition to the changes to its lab operations — a move that is expected to trim annual expenses by $4 million once completed — the firm also recently agreed to sell its BioServe Biotechnologies subsidiary to Reprocell for up to $1.9 million.