Revenues Increase 28% to $3.0 Million on
Record Reproductive Health Genetic Screening
Test Volume and Higher Average Revenue per Test
CombiMatrix Corporation (NASDAQ:CBMX), a molecular diagnostics
company specializing in DNA-based testing services for
pre-implantation genetic diagnostics and screening, miscarriage
analysis, prenatal and pediatric diagnostics, today reported
financial results for the three months ended March 31, 2016.
“We are reporting another exceptional quarter of
financial progress, with 28% revenue growth, expanded gross margin,
increased cash collections and well managed operating expenses,”
said Mark McDonough, CombiMatrix President and CEO. “Our
growth was driven by a 39% increase in reproductive health revenue
on an 18% increase in test volume, reflecting higher average
revenue per test. We are particularly pleased with our
performance in miscarriage analysis testing, with revenues up 43%
on 13% test volume growth. We also benefited from better
productivity from our newer sales representatives, which
contributed to an 18% increase in our customer base.
“We anticipate that various industry dynamics
will favorably impact our business,” he added. “In March, the
two leading associations in women’s healthcare, the American
College of Obstetricians and Gynecologists (ACOG) and the Society
for Maternal-Fetal Medicine (SMFM), issued revised practice
bulletins recommending that all women regardless of age or other
risk factors are offered prenatal genetic testing. These
bulletins reiterated the need to perform confirmatory testing when
screening tests reveal positive results for fetal
abnormalities. Additionally, a number of health plans,
including Cigna and several in the Blue Cross Blue Shield network,
have recently revised their medical policies to cover chromosomal
microarray testing for recurrent pregnancy loss. We believe
that more health plans will follow suit based on the growing
clinical support for this valuable patient information.
“We are firmly focused on growth and a path
toward profitability, supported by tight execution of our business
strategy,” said Mr. McDonough. “This year we plan to expand
our IVF testing portfolio and expect to increase physician adoption
through more clinical validation, improved marketing developed from
the insights from our newly appointed Scientific Advisory Board,
and greater productivity from our sales organization. We also
are seeking opportunities to build upon our leadership position in
the growing reproductive health diagnostics market and enhance
shareholder value through partnerships and other business
development alternatives. With the completion of an $8
million financing in late March, we are well positioned to execute
on our plans.”
First Quarter Financial and Operational
Highlights (all comparisons are with the first quarter of
2015)
- Total revenues of $3.0 million, up 28%
- Reproductive health revenues of $2.2 million, up 39%
- Reproductive health test volume of 1,426, up 18%
- Number of billable customers reaches 264, up 18%
- Cash collections of $2.5 million, up 15%
- Closed $8.0 million underwritten public offering in March of
2016
- Launched CombiPGD™ - Preimplantation Genetic Diagnosis for
Single Gene Disorders and Chromosomal Translocations
- Formed Scientific Advisory Board
|
|
|
|
|
|
|
|
|
|
Volumes |
Revenues (in
000's) |
|
Q1
'16 |
Q1
'15 |
#
Δ |
% Δ |
Q1
'16 |
Q1
'15 |
$
Δ |
% Δ |
Prenatal |
264 |
324 |
|
(60 |
) |
|
(19 |
%) |
$ |
321 |
|
$ |
422 |
|
$ |
(101 |
) |
|
(24 |
%) |
Miscarriage analysis |
995 |
882 |
|
113 |
|
|
13 |
% |
|
1,622 |
|
|
1,132 |
|
|
490 |
|
|
43 |
% |
PGS |
167 |
- |
|
167 |
|
|
- |
|
|
222 |
|
|
- |
|
|
222 |
|
|
- |
|
Subtotal - reproductive health |
1,426 |
1,206 |
|
220 |
|
|
18 |
% |
|
2,165 |
|
|
1,554 |
|
|
611 |
|
|
39 |
% |
Pediatric |
452 |
467 |
|
(15 |
) |
|
(3 |
%) |
|
500 |
|
|
497 |
|
|
3 |
|
|
1 |
% |
Subtotal - all arrays |
1,878 |
1,673 |
|
205 |
|
|
12 |
% |
|
2,665 |
|
|
2,051 |
|
|
614 |
|
|
30 |
% |
Non-array tests |
770 |
672 |
|
98 |
|
|
15 |
% |
|
265 |
|
|
236 |
|
|
29 |
|
|
12 |
% |
Total - all tests |
2,648 |
2,345 |
|
303 |
|
|
13 |
% |
|
2,930 |
|
|
2,287 |
|
|
643 |
|
|
28 |
% |
Royalties |
|
|
|
|
|
42 |
|
|
42 |
|
|
- |
|
|
0 |
% |
Total revenues |
|
|
|
|
$ |
2,972 |
|
$ |
2,329 |
|
$ |
643 |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
Financial Results
Total revenues for the first quarter of 2016
increased 28% to $3.0 million from $2.3 million for the first
quarter of 2015. Revenues for the first quarter of 2016 were
comprised of $2.9 million of diagnostic services revenue and
$42,000 in royalties. Reproductive health diagnostic test
revenue, which includes prenatal microarrays, miscarriage analysis
and PGS, increased 39% to $2.2 million and related testing volumes
increased 18% to 1,426. The first quarter 2016 revenue
increase was driven partially by higher test volumes, particularly
from miscarriage analysis and PGS testing, but primarily by higher
average revenue per test in miscarriage analysis testing.
Total operating expenses were $4.4 million for
the first quarter of 2016, compared with $4.1 million for the first
quarter of 2015. The increase was due primarily to an
increase in cost of services related to higher test volumes and
from an increase in sales and marketing expenses related to sales
force expansion. Gross margins for the first quarter of 2016
improved to 51.6% from 46.2% for the first quarter of 2015 due
primarily to improved average reimbursement on miscarriage analysis
testing.
The net loss for the first quarter of 2016 was
$1.5 million, or $1.73 per share, compared with a net loss for the
first quarter of 2015 of $1.8 million, or $2.24 per share.
Net loss attributable to common stockholders for the first quarter
of 2016 was $3.1 million, or $3.63 per share, compared with a net
loss attributable to common stockholders for the first quarter of
2015 of $2.7 million, or $3.37 per share. The higher net loss
attributable to common stockholders in 2016 reflected one-time,
non-cash charges of $1.9 million related to deemed dividends from
the issuance of Series F convertible preferred stock and warrants
in the $8.0 million public offering that closed on March 24,
2016. This increase was partially offset by the reversal of
the $890,000 Series E deemed dividend recognized in 2015 from the
repurchase of those securities upon closing of our public offering,
partially reduced by the $656,000 deemed dividend paid to the
Series E investors in February of 2016.
The Company reported $6.6 million in cash, cash
equivalents and short-term investments as of March 31, 2016,
compared with $3.9 million as of December 31, 2015. The
Company used $1.7 million in cash to fund operating activities
during the first quarter of 2016, compared with $1.2 million to
fund operating activities during the comparable period in
2015. The increase in net cash used to fund operating
activities in 2016 resulted primarily from the timing of the
purchase of inventory supplies, coupled with higher overall
headcount in early 2016 compared with 2015.
Conference Call and Webcast
CombiMatrix will hold an investment-community
conference call and audio webcast today beginning at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss these results and
answer questions. The conference call dial-in numbers are (866)
634-2258 for domestic callers and (330) 863-3454 for international
callers. A live webcast of the call will be available at
http://investor.combimatrix.com/events.cfm
A recording of the call will be available for
seven days beginning approximately two hours after the completion
of the call by dialing (855) 859-2056 for domestic callers or (404)
537-3406 for international callers, and entering passcode
97075128. The webcast of the call will be archived for 30
days on the Company’s website at
http://investor.combimatrix.com/events.cfm.
About CombiMatrix
Corporation
CombiMatrix Corporation provides valuable
molecular diagnostic solutions and comprehensive clinical support
to foster the highest quality in patient care. CombiMatrix
specializes in pre-implantation genetic diagnostics and screening,
miscarriage analysis, prenatal and pediatric diagnostics, offering
DNA-based testing for the detection of genetic abnormalities beyond
what can be identified through traditional methodologies.
CombiMatrix performs genetic testing utilizing a variety of
advanced cytogenomic techniques, including chromosomal microarray,
standardized and customized fluorescence in situ hybridization
(FISH) and high-resolution karyotyping. CombiMatrix is
dedicated to providing high-level clinical support for healthcare
professionals in order to help them incorporate the results of
complex genetic testing into patient-centered medical decision
making. Additional information about CombiMatrix is available at
www.combimatrix.com or by calling (800) 710-0624.
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: whether revised practice
bulletins from leading healthcare organizations will result in
increased adoption of our diagnostic tests; whether revised medical
policies by third-party insurers will result in increased
reimbursement for our diagnostic tests; our ability to successfully
expand the base of our customers, 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 all of
our genetic testing markets; our ability to attract and retain
a qualified sales force in wider geographies; our ability to ramp
production from our sales; rapid technological change in our
markets; changes in demand for our future services; legislative,
regulatory and competitive developments; 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.
Company Contact: |
|
|
|
Investor Contact: |
Mark
McDonough |
|
|
|
LHA |
President & CEO, CombiMatrix Corporation |
|
|
|
Jody
Cain |
(949)
753-0624 |
|
|
|
(310)
691-7100 |
|
|
|
|
jcain@lhai.com |
Tables to Follow
|
COMBIMATRIX CORPORATION |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except share and per share
information) |
(Unaudited) |
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
2016 |
|
|
2015 |
|
Revenues: |
|
|
Diagnostic services |
$ |
2,930 |
|
$ |
2,287 |
|
Royalties |
|
42 |
|
|
42 |
|
Total revenues |
|
2,972 |
|
|
2,329 |
|
|
|
|
Operating
expenses: |
|
|
Cost of services |
|
1,419 |
|
|
1,230 |
|
Research and development |
|
143 |
|
|
157 |
|
Sales and marketing |
|
1,336 |
|
|
1,190 |
|
General and administrative |
|
1,526 |
|
|
1,475 |
|
Patent amortization and
royalties |
|
25 |
|
|
25 |
|
Total operating expenses |
|
4,449 |
|
|
4,077 |
|
Operating loss |
|
(1,477 |
) |
|
(1,748 |
) |
|
|
|
Other income
(expense): |
|
|
Interest income |
|
4 |
|
|
3 |
|
Interest expense |
|
(18 |
) |
|
(20 |
) |
Total other income (expense) |
|
(14 |
) |
|
(17 |
) |
Net
loss |
$ |
(1,491 |
) |
$ |
(1,765 |
) |
|
|
|
Deemed dividend paid
for right to repurchase Series E |
|
|
convertible preferred stock |
$ |
(656 |
) |
$ |
- |
|
Deemed dividends from
issuing Series E |
|
|
convertible preferred stock and
warrants |
|
890 |
|
|
(890 |
) |
Deemed dividends from
issuing Series F |
|
|
convertible preferred stock and
warrants |
|
(1,877 |
) |
|
- |
|
Net loss
attributable to common stockholders |
$ |
(3,134 |
) |
$ |
(2,655 |
) |
|
|
|
Basic
and diluted net loss per share |
$ |
(1.73 |
) |
$ |
(2.24 |
) |
Deemed dividend paid
for right to repurchase Series E |
|
|
convertible preferred stock |
|
(0.76 |
) |
|
- |
|
Deemed dividends from
issuing Series E |
|
|
convertible preferred stock |
|
1.03 |
|
|
(1.13 |
) |
Deemed dividends from
issuing Series F |
|
|
convertible preferred stock |
|
(2.17 |
) |
|
- |
|
Basic and diluted net
loss per share attributable |
|
|
to common stockholders |
$ |
(3.63 |
) |
$ |
(3.37 |
) |
|
|
|
Basic and diluted
weighted average |
|
|
common shares outstanding |
|
863,931 |
|
|
786,431 |
|
|
|
|
CONSOLIDATED
BALANCE SHEET INFORMATION: |
|
|
|
March 31, |
December 31, |
|
|
2016 |
|
|
2015 |
|
|
|
Total cash, cash
equivalents and short-term investments |
$ |
6,608 |
|
$ |
3,901 |
|
Total assets |
$ |
11,204 |
|
$ |
7,922 |
|
Total liabilities |
$ |
2,521 |
|
$ |
2,066 |
|
Total stockholders’
equity |
$ |
8,683 |
|
$ |
5,856 |
|
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