NEW YORK (GenomeWeb) — Cancer Genetics reported after the close of the market on Monday an 11 percent drop in first quarter revenues as improved performance by its biopharma services operations was more than offset by declines in clinical and discovery services revenues.
For the three-month period ended March 31, Rutherford, New Jersey-based Cancer Genetics posted revenues of $6.8 million versus $7.7 million in the same quarter the year before. Biopharma services revenues climbed 8 percent to $4.0 million from $3.7 million year over year. However, clinical services revenues dropped 39 percent to $1.4 million from $2.3 million, while discovery services revenues fell nearly 12 percent to $1.5 million from $1.7 million.
Cancer Genetics said that the revenue breakdown reflects its shifting focus to biopharma services over clinical services, and noted that last year's discovery services numbers included revenues from an India-based subsidiary that was sold off in early 2018.
Cancer Genetics' net loss in the first quarter rose to $4.6 million, or $.09 per share, based on 48.9 million shares outstanding, from $4.5 million, or $.16 per share, on 27 million shares outstanding, a year earlier.
Its R&D spending in the quarter dropped to $454,000 from $681,000, while SG&A costs fell to $4.4 million from $6.9 million. Cancer Genetics has been working to cut costs, and last year consolidated its West coast molecular profiling laboratory into its New Jersey and North Carolina labs. The company said it also recently reduced the number of its direct sales personnel, but did not provide specific details about the layoffs.
At the end of March, Cancer Genetics had cash and cash equivalents totaling $697,000.
"We are pleased with [the] ... increase in biopharma revenue during the quarter, which reflects the completion and delivery of key projects," Cancer Genetics CEO John Roberts said in a statement. "It also reflects our strategic decision to focus on this business as part of our larger transformation plan."
Roberts added that the company is continuing to explore strategic options with financial advisor firm Raymond James & Associates. Cancer Genetics had planned to merge with NovellusDx, but scuttled the deal in December.