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CombiMatrix Posts 37 Percent Increase in Q2 Revenues

NEW YORK (GenomeWeb) – CombiMatrix today reported a 37 percent increase in second quarter revenues, driven by higher test volumes in its reproductive health and pediatric segments as well as improved test reimbursement across all segments.

The release of the financial results comes just days after molecular diagnostics firm Invitae announced it will acquire CombiMatrix as part of an effort to expand its presence in reproductive health testing. The all-stock transaction is expected to close in the fourth quarter.

For the three-month period ended June 30, CombiMatrix's revenues climbed to $4.2 million from $3.1 million the year before. Reproductive health diagnostic test revenues — which include prenatal, miscarriage analysis, and preimplantation genetic screening testing — were up 44 percent to $3.1 million from $2.2 million in the same period last year, with testing volumes increasing 25 percent to 1,748. Revenues from the company's pediatric segment, meanwhile, rose 30 percent to $725,000 from $558,000, with test volumes rising nearly 11 percent to 549.

CombiMatrix's second quarter net loss narrowed significantly to $370,000, or $.13 per share, from $1.2 million, or $.89 per share, in the year-ago period. The improvement in net loss was primarily due to higher revenues and improved gross margins, the company said.

The firm's Q2 R&D costs dropped 43 percent to $85,000 from $149,000, while SG&A spending edged up 7 percent to $2.9 million from $2.7 million.

CombiMatrix finished the second quarter with $3 million in cash, cash equivalents, and short-term investments.

During morning trading on the Nasdaq, shares of CombiMatrix were up 1 percent to $7.29.