Full Press Release Details
Inc. Reports Fourth Quarter and Fiscal Year 2008 Results
Neb., March 18, 2009 - Transgenomic, Inc. (OTCBB:
TBIO.OB) today announced financial results for the fourth quarter and
year ended December 31, 2008. The Company's financial results are presented in
the tables that follow.
Company reported a net loss of $219,000 or $0.00 per share for the fourth
quarter of 2008 as compared to a net income of $212,000 or $0.00 per share for
the fourth quarter of 2007.
from continuing operations were $6.1 million during the fourth quarter 2008,
compared to $6.5 million during the comparable period of 2007. Gross profit from
continuing operations was $3.4 million or 55 percent during the fourth quarter
of 2008 compared to $3.9 million or 60 percent during the comparable period of
2007. Operating expenses from continuing operations were $3.4 million
during the fourth quarter of 2008 compared to $3.7 million during the same
period of 2007. The $3.4 million in operating expenses included a $638,000
goodwill impairment charge and income from foreign currency revaluation of $0.5
million. Cash and cash equivalents totaled $4.8 million at December
Ended December 31, 2008
Company reported a net loss of $495,000 or $0.01 per share for the year ended
December 31, 2008, compared to a net loss of $2.1 million or $0.04 per share for
the year ended December 31, 2007. The 2007 net loss was comprised of a
loss from continuing operations of $2.2 million or $0.04 per share and an income
from discontinued operations of $67,000.
from continuing operations were $24.0 million for the year ended December 31,
2008, compared to $23.2 million for the year ended December 31, 2007.
Gross profit from continuing operations was $13.6 million or 57 percent for the
year ended December 31, 2008 compared to $12.7 million or 55 percent for the
year ended December 31, 2007. Operating expenses from continuing
operations were $14.0 million for the year ended December 31, 2008 which
included a $638,000 goodwill impairment and income from foreign currency
revaluation of $1.0 million. Operating expenses from continuing
operations for the year ended December 31, 2007 were $16.0 million, which
included $1.5 million in restructuring charges for the year ended December 31,
2007. The Company used cash flows in operations of $413,000 for the year
ended December 31, 2008 compared to cash flows used in operations of $2.9
million for the year ended December 31, 2007.
Tuttle, the Company's President and Chief Executive Officer, noted, "We are
quite pleased with the overall results of the year. Our Molecular Reference Lab
grew 70% in the year and we continued to make gains in our Pharmacogenomics
services business by adding several key new pharma customers. With
this growth in our services business, our previous significant effort in cost
reduction and investment in our sales organization, we have achieved close to
breakeven performance for the year."
continued to improve our operations efforts for our Molecular Reference
Laboratory business as well as our WAVE system and reagent manufacturing
activities. These efforts resulted in our lab gaining accreditation by the
College of American Pathologists (CAP) and our manufacturing site attaining
ISO9001:2000 accreditation during the fourth quarter."
importantly, we embarked on an aggressive pursuit of new assay technology to
drive both short and long-term growth for our laboratory businesses. Key
licensing efforts during the year included our exclusive licenses with the
Clayton Foundation for Medical Research for their patent on mitochondrial DNA
damage and our license with Power3 Medical for their proteomic assay technology
for Alzheimer's and Parkinson's disease. The Clayton Medical license has allowed
us to develop a mitochondrial damage assay which we hope will serve as a very
important assessment tool for a variety of key medical problems including assays
for cardiac disease, neurodegenerative diseases, diabetes and cancer as well as
aging and wellness testing. We have active clinical validation efforts beginning
or on-going for each of these assay targets and hope to bring these products to
the market as quickly as possible."
also developing a full product line of key cancer pathway gene mutation kits to
complement our WAVE and Surveyor products ability to find cancer treatment and
assessment impacting gene mutations. The ability of our products to surpass
typical sequencing in finding these key cancer gene mutations is well known.
However, we believe that clinical use of the WAVE and Surveyor product combo
will be enhanced with specific gene mutation kits based on our experience in
clinical trial assessments of these gene mutations that we are providing through
our Pharmacogenomics Services Lab."
management will discuss fourth quarter and full year 2008 financial results via
teleconference on Wednesday, March 18, 2009 at 5:00 p.m. Eastern Time. To access
the call via telephone, dial 800-894-5910 or
785-424-1052. 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. An archived recording of the conference
call will be available and can be accessed via the web 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, April 1,
2009. Simply dial 800-688-7036 or 402-220-1346 from any
is a global biotechnology company that provides unique products and services for
automated high sensitivity genetic variation and mutation analysis. Their
offerings include systems, products, discovery and laboratory testing services
to the academic and medical research, clinical laboratory and pharmaceutical
markets in the fields of pharmacogenomics and personalized medicine. Specific
offerings include WAVE DHPLC
Systems, related consumables and assay kits, cytogenetics automated systems,
Transgenomic Molecular Clinical Reference Laboratory and Pharmacogenomics
Research Services. Transgenomic's two laboratory services divisions utilize
these technologies and expertise to provide a menu of mutation scanning tests
for over 700 cancer-associated genes and more than 60 validated diagnostic tests
to meet the needs of pharmaceutical and biotech companies, research and clinical
laboratories, physicians and patients. For more information about the innovative
systems, products and services offered by Transgenomic, please
visit: www.transgenomic.com.
Cautionary Statements
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 our actual results to be materially different from any future
results, performance or achievements expressed or implied by such statements.