(By Balachander) Complete Genomics Inc. (NASDAQ: GNOM), a provider of human genome sequencing technology, reported a narrower loss for the third quarter as revenue jumped.
Net loss narrowed to $17.99 million or 52 cents per share from $21.60 million or 65 cents per share in the year-ago quarter.
Revenue soared 74 percent to $7.28 million and the company recognized revenue for roughly 1,900 genomes.
Wall Street analysts, on average, expected a loss of 52 cents per share on revenue of $8.05 million.
Costs and operating expenses fell slightly to $24.6 million from $25.0 million in the comparable period of the prior year.
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Complete Genomics, which had announced a merger agreement with Chinese pharmaceutical company BGI-Shenzhen, said it ended the third quarter with $34.7 million in cash, cash equivalents, and short-term investments. This included $6.0 million received from a subsidiary of BGI-Shenzhen.
Under the terms of the agreement entered in September, the Mountain View, California-based developer of DNA sequencing platform will be acquired by a U.S. unit of BGI for $3.15 per share in cash.
As of September 30, 2012, the company's backlog was around 3,800 revenue generating genomes, representing an aggregate revenue potential of roughly $18 million.
For the second quarter ended June 30, the company posted a wider loss as 29 percent rise in costs and expenses offset 48 percent rise in revenue. Its net loss widened to $18.8 million from $15.9 million on revenue of $8.6 million.
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GNOM ended Thursday's regular trading session at $3.00. The stock has been trading in the 52-week range between $1.57 and $5.42.