Full Press Release Details
Transgenomic Reports
Fourth Quarter Financial Results
call begins at 5:00 p.m. Eastern Time today
OMAHA, Neb. (February 24, 2010) - Transgenomic, Inc.
(OTC/BB: TBIO) today reported financial results for the three and 12 months
ended December 31, 2009, and provided a business update.
Fourth Quarter Financial Results
income for the fourth quarter of 2009 was $129,000 or $0.00 per diluted share,
compared with a net loss of $219,000 or $0.00 per share for the fourth quarter
were $6.5 million during the fourth quarter 2009, compared with $6.1 million
during the comparable period of 2008. Gross profit was $3.4 million or 52
percent of net sales during the fourth quarter of 2009, compared with gross
profit of $3.4 million or 55 percent of net sales during the comparable period
of 2008. Operating expenses were $3.1 million during the fourth quarter of
2009, compared with $3.4 million during the same period of 2008. The 2008
operating expenses included a goodwill impairment charge of $638,000 and income
from foreign currency revaluation of $0.5 million. Cash and cash
equivalents were $5.6 million as of December 31, 2009, compared with $4.8
million as of December 31, 2008.
Company reported a net loss for 2009 of $1.9 million or $0.04 per share,
compared with a net loss for 2008 of $495,000 or $0.01 per share.
for 2009 were $22.0 million, compared with $24.0 million for 2008. Gross
profit was $11.6 million or 53 percent of net sales for 2009, compared with
gross profit of $13.6 million or 57 percent of net sales for 2008.
Operating expenses were $13.5 million for 2009, which included expense from
foreign currency revaluation of $0.3 million. Operating expenses for
2008 were $14.0 million, which included a goodwill impairment of $638,000,
income from foreign currency revaluation of $1.0 million and a restructuring
charge of $118,000. Cash flow from operations was $1.3 million for 2009,
compared with cash flow used in operations of $413,000 for
Tuttle, president and chief executive officer, commented, "We took a number of
steps in the fourth quarter of 2009 that are expected to have a positive effect
on the financial performance of Transgenomic for many years to come, as we added
to and enhanced our platform technologies for use in drug discovery and in
diagnostic screening. The decision to execute the broad and exclusive
license agreement with Dana-Farber Cancer Institute for Cold-PCR already is
proving to be a wise one, as it gives us the ability to improve the sensitivity
of a multitude of genetic tests while adding new ones to our product
offerings. For example, earlier this month we announced that in a
study we conducted in conjunction with a major pharmaceutical company we
validated Cold-PCR technology to detect colorectal tumor-associated K-RAS
mutations with 100 percent concordance between Transgenomic's mutation results
obtained in plasma and the matched tumor K-RAS genotypes. We will continue our
validation studies throughout the year and develop additional cancer assays to
complement our K-RAS kit for commercial use and for processing in both our
CLIA-certified laboratory and pharmacogenomics laboratory as well as direct
personalized medicine continues to evolve, we are working with pharmaceutical
companies and are in discussions with many more for the use of Cold-PCR to
understand the mechanism of action of various drugs and the predictive value of
a custom diagnostic assay. Cold-PCR has the potential to markedly improve
patient care and earlier diagnosis of several diseases.
assembling the building blocks that we believe ultimately will be a major force
in the early diagnosis of Parkinson's disease. During the quarter we signed an
exclusive licensing option with Gene Solutions for a set of validated mutations
found in Parkinson's disease patients that can form the basis of a novel and
accurate diagnostic test that will work with Transgenomic's mitochondrial
mutation detection technology. In addition, we completed the clinical
validation in our CLIA lab of the NuroPro Parkinson's disease test, fulfilling
the terms of our licensing and collaboration agreement with Power3 Medical. We
continue to be in full compliance with the license terms, maintaining our
worldwide rights to this exclusive license."
on the sales of instruments, Mr. Tuttle went on to say, "As we had anticipated,
the timing of several OEM instrument sales that shifted from the third quarter
to the fourth led to significant revenue growth on a sequential quarter
basis. Our OEM sales were extremely strong in the fourth quarter and,
as the economy improves, we hope to see continued strength here."
management will discuss fourth quarter and full year 2009 financial results and
answer questions during a conference call today beginning at 5:00 p.m. Eastern
time. To access the call via telephone, please dial 800-862-9098 or
785-424-1051. The call also will be broadcast live over the Internet. To
listen to the webcast, please log onto the Company's Investor Relations web page
and follow the instructions. An archived recording of the call can be accessed
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,
March 10, 2010 by dialing 800-374-0328 or 402-220-0663.
Inc. (www.transgenomic.com
) is a global biotechnology company specializing in high sensitivity genetic
variation and mutation analysis, providing products and services in DNA mutation
detection and discovery for clinical research, clinical molecular diagnostics
and pharmacogenomics analyses. Its product offerings include the WAVE Systems
and associated consumables specifically designed for use in genetic variation
detection and single- and double-strand DNA/RNA analysis and purification. With
broad applicability to genetic research, over 1,475 systems have been shipped to
customers in more than 30 countries. The SURVEYOR Mutation
Detection Kits and SURVEYOR Check-It Kit provide reagents and protocols for high
sensitivity detection of mutations in DNA. In addition, HANABI automated
chromosome harvesting systems improve laboratory productivity with consistent
quality compared with manual methods for cytogenetic analyses. Service offerings
include the Transgenomic Molecular Laboratory, which provides reference
laboratory services specializing in molecular diagnostics including
Mitochondrial Disorders, Oncology and Hematology, Molecular Pathology and
Inherited Diseases. Transgenomic Pharmacogenomics Services is a CRO for
pharmacogenomic, translational research and clinical trials.
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 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