CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics
company specializing in DNA-based testing services for pre- and
postnatal developmental disorders, today reported financial results
for the fourth quarter and full year ended December 31, 2014. The
Company will host a conference call and webcast at 1:30 p.m. PST,
today.
"We delivered record test volumes and revenues during the
quarter and full year as we continue to execute on our commercial
and reimbursement strategies," said Mark McDonough, President and
Chief Executive Officer of CombiMatrix. "We successfully completed
key initiatives, such as launching new products, signing on new
customers and recruiting expertise into the Company that should
position us well for 2015 and beyond. On February 13, we announced
that we strengthened our balance sheet by raising $4.9 million in
gross proceeds from a registered direct offering. In early January
2015, we announced that the Superior Court of Orange County's
tentative decision on the litigation was decided in our favor. As a
result of these and many other recent accomplishments, we are
looking forward to a productive and successful 2015."
Operational Highlights
- Record prenatal microarray volume of 1,126 tests in the fourth
quarter of 2014, a 67 percent increase compared to the fourth
quarter of 2013 (see table below). For the year ended December 31,
2014, core prenatal microarray test volume grew 65 percent compared
to the same period in 2013.
- The Company's customer base continued to grow, reaching 226
billable customers during the fourth quarter of 2014, a new record
for CombiMatrix, compared to 136 billable customers during the
fourth quarter of 2013.
- Strong cash collections of $1.95 million and $7.36 million for
the fourth quarter and year ended December 31, 2014,
respectively.
Additional test volume and revenue data are as follows:
|
|
Volumes |
|
Revenues
(in 000's) |
|
|
Q4 '14 |
|
Q4 '13 |
|
% Δ |
|
Q4 '14 |
|
Q4 '13 |
|
% Δ |
Prenatal |
|
277 |
|
183 |
|
51.4% |
|
$ 364 |
|
$ 227 |
|
60.4% |
Miscarriage analysis |
|
849 |
|
491 |
|
72.9% |
|
1,052 |
|
805 |
|
30.7% |
Subtotal - prenatal
arrays |
|
1,126 |
|
674 |
|
67.1% |
|
1,416 |
|
1,032 |
|
37.2% |
Pediatric |
|
536 |
|
500 |
|
7.2% |
|
559 |
|
541 |
|
3.3% |
Oncology |
|
1 |
|
85 |
|
-98.8% |
|
2 |
|
72 |
|
-97.2% |
Subtotal - all
arrays |
|
1,663 |
|
1,259 |
|
32.1% |
|
1,977 |
|
1,645 |
|
20.2% |
Non-array tests |
|
626 |
|
250 |
|
150.4% |
|
209 |
|
60 |
|
248.3% |
Total - all tests |
|
2,289 |
|
1,509 |
|
51.7% |
|
2,186 |
|
1,705 |
|
28.2% |
Royalties |
31 |
|
48 |
|
-35.4% |
Total
revenues |
$ 2,217 |
|
$ 1,753 |
|
26.5% |
% Arrays of Total |
|
73% |
|
83% |
|
-12.9% |
|
90% |
|
96% |
|
-6.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes |
|
Revenues
(in 000's) |
|
|
YTD '14 |
|
YTD '13 |
|
% Δ |
|
YTD '14 |
|
YTD '13 |
|
% Δ |
Prenatal |
|
996 |
|
718 |
|
38.7% |
|
$ 1,343 |
|
$ 994 |
|
35.1% |
Miscarriage analysis |
|
2,664 |
|
1,504 |
|
77.1% |
|
3,728 |
|
2,557 |
|
45.8% |
Subtotal - prenatal
arrays |
|
3,660 |
|
2,222 |
|
64.7% |
|
5,071 |
|
3,551 |
|
42.8% |
Pediatric |
|
2,024 |
|
1,984 |
|
2.0% |
|
2,064 |
|
2,045 |
|
0.9% |
Oncology |
|
199 |
|
334 |
|
-40.4% |
|
181 |
|
204 |
|
-11.3% |
Subtotal - all
arrays |
|
5,883 |
|
4,540 |
|
29.6% |
|
7,316 |
|
5,800 |
|
26.1% |
Non-array tests |
|
1,878 |
|
1,610 |
|
16.6% |
|
577 |
|
404 |
|
42.8% |
Total - all tests |
|
7,761 |
|
6,150 |
|
26.2% |
|
7,893 |
|
6,204 |
|
27.2% |
Royalties |
149 |
|
163 |
|
-8.0% |
Total
revenues |
$ 8,042 |
|
$ 6,367 |
|
26.3% |
% Arrays of Total |
|
76% |
|
74% |
|
2.7% |
|
93% |
|
93% |
|
-0.9% |
Financial Results
Quarter ended December 31, 2014 compared to Quarter
ended December 31, 2013
For the quarter ended December 31, 2014, CombiMatrix reported
total revenues of $2.2 million, a 26.5 percent increase over total
revenues of $1.8 million for the fourth quarter of 2013. The
increase in revenues was driven primarily by increased volumes of
both microarray and non-microarray diagnostic tests despite a
reduction in oncology volumes and revenues as the Company exited
that business during 2014.
Total operating expenses were $3.8 million for the fourth
quarter of 2014 compared to $3.6 million in the comparable quarter
of 2013. The increase was driven primarily by continued investment
in revenue generating departments such as sales, marketing, billing
and genetic counseling. General and administrative expenses
decreased primarily due to executive relocation and recruiting
costs incurred during the fourth quarter of 2013 that did not
repeat in the fourth quarter of 2014.
Net loss was $1.6 million for the fourth quarter of 2014
compared to a net loss of $1.4 million in the comparable quarter of
2013. The net loss in the fourth quarter of 2014 was negatively
impacted primarily by increased sales and marketing costs discussed
above, as well as from certain warrant derivative gains recognized
during the fourth quarter of 2013 that did not repeat during the
fourth quarter of 2014.
The Company reported a net loss attributable to common
stockholders of $1.6 million, or $0.15 per basic and diluted shares
outstanding in the fourth quarter of 2014, compared to a net loss
attributable to common stockholders of $7.8 million, or $1.44 per
basic and diluted shares outstanding, for the same period in
2013. The fourth quarter of 2013 included deemed dividends
from Series D convertible preferred stock of $(6.4 million) or
$(1.18) per share, which did not repeat in 2014.
Year ended December 31, 2014 compared to Year ended
December 31, 2013
For the year ended December 31, 2014, CombiMatrix reported total
revenues of $8.0 million, a 26 percent increase over total revenues
of $6.4 million for the same period in 2013. The increase in
revenues was also driven primarily by increased volumes of
microarray diagnostic tests year-over-year, despite decreased
oncology volumes and revenues as the Company exited that business
during 2014.
Total operating expenses were $16.8 million for the year ended
December 31, 2014, compared to $12.8 million in the comparable
period in 2013. The increase was driven primarily by continued
investment in sales and marketing as well as higher legal defense
costs from ongoing litigation, which were $2.2 million for the year
ended December 31, 2014, compared to only $244,000 in the
comparable period in 2013.
Net loss was $8.7 million for the year ended December 31, 2014,
compared to $3.9 million in the comparable period in 2013. A
significant component of the increase period-over-period was due to
$2.8 million of non-operating, non-cash warrant derivative gains
recognized in 2013 compared to only $152,000 recognized in
2014. A reduction in the number of derivative warrants
outstanding due to warrant exercises in early 2014 as well as the
warrant contract modifications that occurred in the second quarter
of 2014 were the primary reasons for the decrease in the gains
period-over-period. Increases in sales and marketing and
general and administrative expenses also contributed to the overall
increase in net loss year-over-year.
Net loss attributable to common stockholders was $8.7 million,
or $0.79 per basic and diluted shares outstanding for the year
December 31, 2014, compared to $12.2 million, or $3.11 per basic
and diluted shares outstanding in the prior year period.
Cash, cash equivalents and short-term investments totaled $5.2
million as of December 31, 2014, compared to $14.0 million as of
December 31, 2013. For the fourth quarter and year ended
December 31, 2014, net cash used in operating activities was $2.0
million and $8.6 million, respectively, compared to $1.5 million
and $5.6 million in the comparable 2013 periods, respectively.
The increase in net cash used in operating activities for all
periods presented was due primarily to increased cash spent on
ongoing litigation, which totaled $339,000 and $2.3 million for the
fourth quarter and year ended December 31, 2014, respectively,
compared to only $70,000 and $217,000 for the comparable 2013
periods, respectively. The increase in cash used in operating
activities was partially mitigated by record cash reimbursement on
diagnostic services billed, which were $7.4 million for the year
ended December 31, 2014, compared to $5.8 million for 2013.
In February 2015, CombiMatrix raised $4.9 million of gross
proceeds from a registered direct offering to certain preexisting,
accredited institutional investors in the Company. Inclusive
of the cash proceeds from the recently completed financing, the
Company's cash and cash equivalents are expected to be sufficient
to fund current operations through the middle of 2016. This
projection does not include any proceeds from possible future
partnerships or additional financing activities, nor does it
account for future litigation costs, which are unpredictable.
Recent Business Highlights
- Data were presented by Dr. Sahoo, Director of Cytogenetics for
CombiMatrix, at the American Society of Human Genetics (ASHG)
showing that chromosomal microarray analysis yields a successful
result in more than 85 percent of cases.1
- CombiMatrix entered the in vitro fertilization (IVF) market
with the launch of CombiPGS™. CombiPGS allows couples to screen
embryos for chromosomal abnormalities prior to implantation of the
embryo in order to maximize the chance of successful implantation
and pregnancy progression and to decrease the likelihood of a
miscarriage.
- CombiMatrix launched its Targeted Array for Prenatal analysis.
The new test offers the superior diagnostic power of microarray
analysis for the detection of clinically relevant microdeletion and
microduplication disorders, while minimizing the risk of
identifying a variant of uncertain significance on chorionic villus
sampling and amniocentesis samples.
- The Superior Court of California issued a tentative ruling and
proposed statement of decision in favor of CombiMatrix in the
matter of the People of the State of California and Relator Michael
Strathmann ("Plaintiff") vs. Acacia Research Corporation,
CombiMatrix Corporation and Amit Kumar ("Defendants"). The Court
has tentatively ruled in favor of the Defendants and against all
claims of the Plaintiff. Specifically, the Court determined
that Defendants had no fraudulent intent when they pursued
insurance benefits under their D&O Policy over a decade ago.
- Karen Warner, RN, joined CombiMatrix as Vice President of Payer
Relations. She will be responsible for managed care, payer access
and reimbursement.
- ReproSource, Inc., a nationally-recognized laboratory dedicated
to fertility specialists and the patients they serve, is now
offering CombiMatrix's chromosomal microarray analysis testing for
miscarriage analysis.
- Entered into a contractual agreement with Fortified Provider
Network (FPN) for coverage of CombiMatrix's suite of diagnostic
laboratory services. FPN has over 200 payor clients
nationwide and contracts with physicians, hospitals, ancillary
facilities, mid-level providers and other specialty healthcare
providers.
- Raised $4.9 million in gross proceeds from a registered direct
offering with existing institutional investors.
Conference Call and Webcast
CombiMatrix will host a conference call at 1:30 p.m. PST (4:30
p.m. EST) today to discuss the fourth quarter and full year 2014
financial and operating results. To access the presentation by
phone, dial 1-877-407-0784 for domestic callers and 1-201-689-8560
for direct dial or international callers. Please ask for the
"CombiMatrix Corporation 2014 Fourth Quarter Financial Results
Conference Call." The conference call will be webcast live under
the investor relations section of CombiMatrix's website at
www.combimatrix.com. A replay of the presentation will be available
following the presentation for 30 days, either via the CombiMatrix
website Investor/Events section or by dialing 1-877-870-5176 for
domestic callers or 1-858-384-5517 for direct-dial international
callers. When prompted, enter playback pin number 13601039.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are
based upon our current expectations, speak only as of the date
hereof and are subject to change. All statements, other than
statements of historical fact included in this press release, are
forward-looking statements. Forward-looking statements can often be
identified by words such as "anticipates," "expects," "intends,"
"plans," "goal," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," similar expressions, and variations or negatives of
these words and include, but are not limited to, statements
regarding projected results of operations and management's future
business, operational and strategic plans, recruiting efforts and
test menu expansion. These forward-looking statements are not
guarantees of future results and are subject to risks,
uncertainties and assumptions that could cause our actual results
to differ materially and adversely from those expressed in any
forward-looking statement. The risks and uncertainties referred to
above include, but are not limited to: our ability to successfully
expand the base of our customers and strategic partners, add to the
menu of our diagnostic tests, develop and introduce new tests and
related reports, expand and improve our current suite of services,
optimize the reimbursements received for our microarray testing
services, and increase operating margins by improving overall
productivity and expanding sales volumes; our ability to
successfully accelerate sales, steadily increase the size of our
customer rosters in both prenatal and developmental genetic testing
markets; our ability to attract and retain a qualified sales force
in wider geographies; our ability to ramp production from our sales
force and our strategic partners; rapid technological change in our
markets; changes in demand for our future services; legislative,
regulatory and competitive developments; the outcome of pending
litigation; general economic conditions; and various other factors.
Further information on potential factors that could affect our
financial results is included in our Annual Report on Form 10-K,
Quarterly Reports of Form 10-Q, and in other filings with the
Securities and Exchange Commission. We undertake no obligation to
revise or update publicly any forward-looking statements for any
reason, except as required by law.
1 T. Sahoo, M. Strecker, A. Mehta, N. Dzidic, R. W. Tyson,
K. Hovanes., Comprehensive genetic analysis of pregnancy loss by
chromosomal microarrays: outcomes, benefits and challenges.
(Platform presentation; Abstract #227/Program #44 Prenatal,
Perinatal, and Reproductive Genetics). Presented at the 64th Annual
Meeting of The American Society of Human Genetics, October 20, 2014
in San Diego, California.
TABLES FOLLOW
|
|
|
|
|
|
|
|
|
|
COMBIMATRIX
CORPORATION |
CONSOLIDATED SUMMARY
FINANCIAL INFORMATION |
(In thousands,
audited) |
|
|
|
|
|
|
For the Three
Months Ended December 31, |
For the Years
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Revenues: |
|
|
|
|
Diagnostic services |
$ 2,186 |
$ 1,705 |
$ 7,893 |
$ 6,204 |
Royalties |
31 |
48 |
149 |
163 |
Total revenues |
2,217 |
1,753 |
8,042 |
6,367 |
Operating expenses: |
|
|
|
|
Cost of services |
1,252 |
894 |
4,432 |
3,527 |
Research and development |
139 |
404 |
725 |
1,011 |
Sales and marketing |
1,163 |
771 |
4,349 |
2,764 |
General and administrative |
1,220 |
1,433 |
7,176 |
5,206 |
Patent amortization and
royalties |
26 |
64 |
114 |
254 |
Total operating expenses |
3,800 |
3,566 |
16,796 |
12,762 |
Operating loss |
(1,583) |
(1,813) |
(8,754) |
(6,395) |
Other income (expenses): |
|
|
|
|
Interest expense, net of
interest income |
(34) |
(16) |
(61) |
(351) |
Warrant derivative gains |
-- |
441 |
152 |
2,804 |
Warrant modification
charge |
-- |
-- |
(44) |
-- |
Total other (expense)
income |
(34) |
425 |
47 |
2,453 |
Net loss |
$ (1,617) |
$ (1,388) |
$ (8,707) |
$ (3,942) |
|
|
|
|
|
Series A convertible preferred stock
dividends |
$ -- |
$ -- |
$ -- |
$ (247) |
Series C convertible preferred stock
dividends |
-- |
(3) |
-- |
(27) |
Deemed dividends from issuing Series B
convertible preferred stock |
-- |
-- |
-- |
(417) |
Deemed dividends from issuing Series C
convertible preferred stock |
-- |
-- |
-- |
(1,213) |
Deemed dividends from issuing Series D
convertible preferred stock |
-- |
(6,367) |
-- |
(6,367) |
Net loss attributable to common
stockholders |
$ (1,617) |
$ (7,758) |
$ (8,707) |
$ (12,213) |
|
|
|
|
|
Basic and diluted net loss per share |
$ (0.15) |
$ (0.26) |
$ (0.79) |
$ (1.00) |
Series A convertible preferred stock
dividends |
-- |
-- |
-- |
(0.06) |
Series C convertible preferred stock
dividends |
-- |
-- |
-- |
(0.01) |
Deemed dividends from issuing Series B
convertible preferred stock |
-- |
-- |
-- |
(0.11) |
Deemed dividends from issuing Series C
convertible preferred stock |
-- |
-- |
-- |
(0.31) |
Deemed dividends from issuing Series D
convertible preferred stock |
-- |
(1.18) |
-- |
(1.62) |
Basic and diluted net loss per share
attributable to common stockholders |
$ (0.15) |
$ (1.44) |
$ (0.79) |
$ (3.11) |
|
|
|
|
|
Basic and diluted weighted average common
shares outstanding |
11,063,246 |
5,397,358 |
11,029,577 |
3,940,965 |
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
INFORMATION: |
|
|
|
December 31, |
December 31, |
|
2014 |
2013 |
|
|
|
Total cash, cash equivalents and short-term
investments |
$5,240 |
$14,036 |
Total assets |
$8,632 |
$16,832 |
Total liabilities |
$1,512 |
$2,168 |
Total stockholders' equity |
$7,120 |
$14,664 |
CONTACT: Company Contact:
Mark McDonough
President & CEO, CombiMatrix Corporation
(949) 753-0624
Investor Contact:
Robert Flamm, Ph.D.
Russo Partners, LLC
(212) 845-4226
robert.flamm@russopartnersllc.com
Media Contact:
David Schull or Lena Evans
Russo Partners LLC
(212) 845-4271
david.schull@russopartnersllc.com
lena.evans@russopartnersllc.com
Combimatrix Corp. (MM) (NASDAQ:CBMX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Combimatrix Corp. (MM) (NASDAQ:CBMX)
Historical Stock Chart
From Sep 2023 to Sep 2024