Nov. 5, 2009 (PR Newswire) --
OMAHA, Neb., Nov. 5 /PRNewswire-FirstCall/ -- Transgenomic, Inc. (OTC Bulletin Board: TBIO) today announced financial results for the quarter ended September 30, 2009. The Company's financial results are presented in the tables that follow.
Third Quarter 2009
The Company reported a net loss of $366,000 or $0.01 per share for the third quarter of 2009 as compared to a net loss of $499,000 or $0.01 per share for the third quarter of 2008.
Net sales were $5.0 million during the third quarter of 2009, compared to $5.4 million during the comparable period of 2008. Gross profit from continuing operations was $2.8 million or 55 percent during the third quarter of 2009 compared to $2.9 million or 54 percent during the comparable period of 2008. Included in cost of sales was $0.3 million of inventory obsolescence. Operating expenses were $3.2 million during the third quarter of 2009 compared to $3.4 million during the same period of 2008. Excluding the impact of foreign currency revaluation gains/losses, operating expenses were down by $163,000 in the third quarter of 2009 compared to the same period of 2008. Included in operating expenses was $0.2 million related to the license for Cold-PCR from the Dana-Farber Cancer Institute.
Cash and cash equivalents totaled $4.7 million at September 30, 2009 compared to $4.8 million at December 31, 2008.
Nine Months Ended September 30, 2009
The Company reported a net loss of $2.0 million or $0.04 per share for the nine months ended September 30, 2009, compared to a net loss of $276,000 or $0.01 per share during the comparable period of 2008.
Net sales were $15.5 million for the nine months ended September 30, 2009, compared to $17.9 million during the comparable period of 2008. Gross profit was $8.2 million or 53 percent for the nine months ended September 30, 2009, compared to $10.3 million or 58 percent in 2008. Operating expenses were $10.4 million for the nine months ended September 30, 2009 compared to $10.6 million during the same period of 2008. Excluding the impact of foreign currency revaluation gains/losses, operating expenses were down by $976,000 for the nine months ended September 30, 2009 compared to the same period in 2008.
Comment and Outlook
Craig Tuttle, the Company's President and Chief Executive Officer, noted, "Net sales for the third quarter declined slightly from the second quarter of 2009. This decrease is primarily attributable to lower instrument sales in the U.S. as well as an expected quarterly decline in our reference laboratory net sales related to summer vacations in the U.S. We also had two OEM instrument sales that ended up closing in October that were expected in the third quarter. This gives us confidence that fourth quarter net sales will show marked improvement."
Tuttle continued, "We remain heavily engaged in development and validation of our mitochondrial DNA damage assay applications, our licensed NuroPro assays for Alzheimer's and Parkinson's disease and our recently announced license for Cold-PCR from the Dana-Farber Cancer Institute. We have already seen strong interest from potential customers for Cold-PCR and hope to have one or more pharma studies initiated during the fourth quarter. Our beta site trials for our K-Ras mutation detection kit have been completed and this kit, the first of several expected, will be launched shortly."
Earnings Call
Company management will discuss third quarter 2009 financial results via teleconference on Thursday, November 5th, at 5:00 p.m. Eastern Time. To access the call via telephone, dial 800-862-9098 or 785-424-1051. 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.
