Published:
Transgenomic, Inc. Reports First Quarter 2008 Results
Transgenomic, Inc. Reports First Quarter 2008 Results
OMAHA, Neb., May 7 /PRNewswire-FirstCall/ -- Transgenomic, Inc.
(OTC Bulletin Board: TBIO) today announced financial results for the quarter
ended March 31, 2008. The Company's financial results are presented in the
tables that follow.
The Company reported net income of $122,000 or $0.00 per share for the
first quarter of 2008 as compared to a net loss of $1.2 million or $0.02 per
share for the first quarter of 2007. All first quarter 2008 net income
resulted from continuing operations. The first quarter 2007 net loss was
comprised of a loss from continuing operations of $1,270,000 or $0.02 per
share offset by income from discontinued operations of $74,000 or $0.00 per
share.
Net sales from continuing operations were $6.3 million during the first
quarter of 2008, compared to $5.2 million during the comparable period of
2007. Gross profit from continuing operations was $3.6 million or 58 percent
during the first quarter of 2008 compared to $2.7 million or 52 percent during
the comparable period of 2007. Operating expenses from continuing operations
were $3.5 million during the first quarter of 2008 compared to $4.0 million
during the same period of 2007. Cash and cash equivalents totaled
$5.8 million at March 31, 2008 compared to $5.7 million at December 31, 2007.
Comment and Outlook
Craig Tuttle, the Company's President and Chief Executive Officer, noted,
"We are very pleased to announce another successful quarter with strong
revenue performance which resulted in net profit for the company. We continue
to achieve our plan and this has resulted in our second straight quarter with
profitable results. Our instrument and consumables sales achieved expectations
and our two laboratory services businesses performed very well in the quarter.
Our Molecular Clinical Reference Laboratory achieved revenue over $500,000 in
the quarter which represents growth of 74% over the prior year's first
quarter. Our Pharmacogenomics Research Services Laboratory generated revenues
of $467,000 which is almost 500% above the prior year's first quarter result.
Our field sales organization continues to reach new customers for these
services businesses and we expect continued growth from these efforts."
"We continue to make progress in establishing key relationships and
collaborations that will enhance our product portfolio in the future. We are
excited by the recent announcement of our study in agreement with the National
Cancer Institute on the NCI 60 cancer cell lines. In this study, we are
completing a full mitochondrial genome and key nuclear mitochondrial gene
analysis of the NCI 60 cancer cell lines to evaluate the amount of
mitochondrial DNA damage that occurs in these cancer cell lines as well as
trying to understand if there are any linkages between mitochondrial DNA
changes and treatment outcomes. This is the first mitochondrial study on the
NCI 60 approved by the NCI."
"In addition, we believe that recent evaluations of our 'OEM' cytogenetics
platform by Quest and LabCorp were positive and may result in further
instrument sales opportunities with both organizations. The Hanabi cytogenetic
harvester is finding strong demand worldwide and we expect it to provide
growth opportunities to us going forward. We are also seeing increasing
interest in the high sensitivity of our mutation detection technology for
several diseases, in particular cancer, as standard DNA sequencing misses many
low level mutations in cancer. We are pursuing several collaborations to
validate these findings to better publicize this advantage from our
proprietary technology."
Earnings Call
Company management will discuss first quarter 2008 financial results via
teleconference on Wednesday, May 7, at 5:00 p.m. Eastern Time. To access the
call via telephone, dial 800-894-5910 or 785-424-1052. The Company will also
host a live broadcast of the call over the Internet. To listen to the
webcast, investors should log on to the Company's Investor Relations web page
at http://www.transgenomic.com/events.asp?id=6 and follow the instructions
provided. An archived recording of the conference call will be available and
can be accessed via the web using the same link listed above for 14 days after
the call. Investors can also listen to a replay via telephone until 11:59 p.m.
Eastern Time on Wednesday, May 21, 2008. Simply dial 800-388-6197 or
402-220-1115 from any telephone.
About Transgenomic
Transgenomic is a global biotechnology company that provides unique
products and services for automated high sensitivity genetic variation and
mutation analysis. Their offerings include systems, products, discovery and
laboratory testing services to the academic and medical research, clinical
laboratory and pharmaceutical markets in the fields of pharmacogenomics and
personalized medicine. Specific offerings include WAVE(R) DHPLC Systems,
related consumables and assay kits, cytogenetics automated systems,
Transgenomic Molecular Clinical Reference Laboratory and Pharmacogenomics
Research Services. Transgenomic's two laboratory services divisions utilize
these technologies and expertise to provide a menu of mutation scanning tests
for over 700 cancer-associated genes and more than 60 validated diagnostic
tests to meet the needs of pharmaceutical and biotech companies, research and
clinical laboratories, physicians and patients. For more information about the
innovative systems, products and services offered by Transgenomic, please
visit: http://www.transgenomic.com.
Transgenomic Cautionary Statements
Certain statements in this press release constitute "forward-looking
statements" of Transgenomic within the meaning of the Private Securities
Litigation Reform Act of 1995, which involve known and unknown risks,
uncertainties and other factors that may cause our actual results to be
materially different from any future results, performance or achievements
expressed or implied by such statements. Forward-looking statements include,
but are not limited to, those with respect to management's current views and
estimates of future economic circumstances, industry conditions, company
performance and financial results, including the ability of the Company to
grow its involvement in the diagnostic products and services markets. The
known risks, uncertainties and other factors affecting these forward-looking
statements are described from time to time in Transgenomic's reports to the
Securities and Exchange Commission. Any change in such factors, risks and
uncertainties may cause the actual results, events and performance to differ
materially from those referred to in such statements. Accordingly, the company
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995 with respect
to all statements contained in this press release. All information in this
press release is as of the date of the release and Transgenomic does not
undertake any duty to update this information, including any forward-looking
statements, unless required by law.
Transgenomic, Inc.
Summary Financial Results
Unaudited Condensed Consolidated Statements of Operations
(dollars in thousands except per share data)
Three Months Ended
March 31,
2008 2007
NET SALES $6,254 $5,222
COST OF GOODS SOLD 2,614 2,514
Gross profit 3,640 2,708
OPERATING EXPENSES:
Selling, general and administrative 2,975 2,980
Research and development 572 1,058
3,547 4,038
INCOME (LOSS) FROM OPERATIONS 93 (1,330)
OTHER INCOME (EXPENSE):
Interest income (expense) 33 61
Other, net (1) 4
32 65
INCOME (LOSS) BEFORE INCOME TAXES 125 (1,265)
INCOME TAX EXPENSE 3 5
INCOME (LOSS) FROM CONTINUING OPERATIONS 122 (1,270)
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX - 74
NET INCOME (LOSS) $122 $(1,196)
BASIC AND DILUTED LOSS PER SHARE:
From continuing operations $0.00 $(0.02)
From discontinued operations - (0.00)
$0.00 $(0.02)
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 49,189,672 49,189,672
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 49,192,571 49,189,672
Transgenomic, Inc.
Summary Financial Results
Unaudited Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
Three Months Ended
March 31,
2008 2007
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING
ACTIVITIES 225 (771)
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES (85) 2,848
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON
CASH (59) (33)
NET CHANGE IN CASH AND CASH EQUIVALENTS 81 2,044
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,723 5,868
CASH AND CASH EQUIVALENTS AT END OF PERIOD $5,804 $7,912
Transgenomic, Inc.
Summary Financial Results
Condensed Consolidated Balance Sheets
(dollars in thousands)
(Unaudited)
March 31, December 31,
2008 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $5,804 $5,723
Accounts receivable (net of allowances for bad
debts of $372 and $703, respectively) 6,354 5,095
Inventories 4,299 4,586
Prepaid expenses and other current assets 535 759
Total current assets 16,992 16,163
PROPERTY AND EQUIPMENT, NET 1,461 1,579
OTHER ASSETS:
Goodwill 638 638
Other assets 698 710
$19,789 $19,090
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $1,212 $1,245
Other accrued expenses 3,618 3,152
Accrued compensation 607 450
Total current liabilities 5,437 4,847
Other long term liabilities 147 141
Total liabilities 5,584 4,988
STOCKHOLDERS' EQUITY 14,205 14,102
$19,789 $19,090
SOURCE Transgenomic, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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