NEW YORK (GenomeWeb) — Cancer Genetics today reported a 7 percent increase in its second quarter revenues driven by its biopharma and discovery services units.
For the three-month period ended June 30, CGI's revenues rose to $7.0 million from $6.6 million in the same quarter last year.
Clinical services revenues in the quarter fell more than 30 percent to $2.1 million from $3.1 million. However, this decline was offset by a 9 percent increase in biopharma services revenues to $3.6 million from $3.3 million, and a 334 percent jump in discovery services revenues to $1.3 million from $300,000.
CGI's net loss in the second quarter grew to $3.6 million, or $.13 per share, from $2.8 million, or $.16 per share, in the year-ago quarter.
Its R&D spending fell 32 percent to $673,000 from $989,000 year-over-year, while its SG&A costs increased 43 percent to $6.7 million from $4.7 million, in part due to expenses related to the firm's ongoing restructuring and professional fees tied to a $2.5 million convertible note financing in July.
At the end of the second quarter, CGI had cash and cash equivalents totaling $1.6 million.
"We are making good progress in consolidating the operations of our West Coast molecular profiling laboratory and moving these capabilities to our facilities in New Jersey and North Carolina," CGI CEO John Roberts said in a statement. "We believe that the consolidation of the Los Angeles facility will reduce our operating expenses, making a positive contribution towards our cost structure consistent with our growth and transformation strategy for 2018 and beyond."
He added that the company continues to work with financial advisor Raymond James & Associates to evaluate strategic options, and that discussions about potential transactions are ongoing.
During early morning trading on the Nasdaq, shares of CGI were down about 2 percent at $.942.