Full Press Release Details
Inc. Reports Third Quarter 2008 Results
Neb., October 29, 2008 - Transgenomic, Inc. (OTCBB:
announced financial results for the quarter ended September 30, 2008. The
Company's financial results are presented in the tables that
from continuing operations were $5.4 million during the third quarter of 2008,
compared to $5.2 million during the comparable period of 2007. Gross profit
continuing operations was $2.9 million or 54 percent during the third quarter
2008 compared to $2.7 million or 51 percent during the comparable period of
2007. Operating expenses from continuing operations were $3.4 million
during the third quarter of 2008 compared to $4.1 million during the same period
of 2007. The increase in gross profits and decrease in operating expenses
reflect the Company's efforts to control costs while leveraging stable revenues
from the instrument and consumables business to continue growing and expanding
the Molecular Clinical Reference Laboratory and Pharmacogenomics Services
Laboratory businesses.
Company reported a net loss of $499,000 or $0.01 per share for the third quarter
of 2008 as compared to a net loss of $1.3 million or $0.03 per share for the
third quarter of 2007.
cash equivalents totaled $4.8 million at September 30, 2008.
Months Ended September 30, 2008
Company reported a net loss of $276,000 or $0.01 per share for the nine months
ended September 30, 2008, compared to a net loss of $2.3 million or $0.05 per
share during the comparable period of 2007. Net losses in 2008 resulted from
continuing operations. The 2007 net loss was comprised of a loss from continuing
operations of $2.4 million or $0.05 per share and income from discontinued
operations of $66,000 or $0.00 per share.
from continuing operations were $17.9 million for the nine months ended
September 30, 2008, compared to $16.7 million during the comparable period
2007. The increase in net sales was attributable to revenue growth and expanding
services from its laboratory businesses.
profit from continuing operations was $10.3 million or 58 percent for the nine
months ended September 30, 2008, compared to $8.8 million or 53 percent in
Operating expenses from continuing operations were $10.7 million for the nine
months ended September 30, 2008, compared to $12.3 million during the comparable
period of 2007. Operating expenses for the nine months ended September 30,
included $1.3 million of restructuring charges.
company used cash flows from operations of $472,000 for the nine months ended
September 30, 2008, compared to cash flows used in operations of $2.7 million
during the same period in 2007. The increase in gross profit, decrease in
operating expenses and lower cash flow use reflect the new management team's
focus on conservative spending and revenue growth.
Tuttle, President and Chief Executive Officer of Transgenomic, commented, "We
are pleased to announce 7% revenue growth year-to-date, driven by the strength
of our expanding Laboratory Services businesses. We reported a net loss in
third quarter of 2008 after two consecutive quarters of profitability.
Historically our third quarter has been slower for our instrument and service
businesses due to summer laboratory closures in Europe and heavy vacation
schedules in the U.S. We remain confident in our financial performance, which
reflects our efforts to conserve cash while building our Laboratory Services
businesses and maintaining our instrument revenues. We expect to continue
expanding services offered within our laboratories as we evaluate in-licensing,
collaboration and acquisition opportunities that have the potential to create
additional value and accelerate growth."
management will discuss third quarter 2008 financial results via teleconference
on Wednesday, October 29th, at 5:00 p.m. Eastern Time. To access the call via
telephone, dial 800-862-9098 or 785-424-1051. 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
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, November 12, 2008. Simply
dial 888-566-0849 or 402-220-0428 from any telephone.
is a global biotechnology company that provides unique products and services
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
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
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:
Cautionary Statements
statements in this press release constitute "forward-looking statements" of
Transgenomic within the meaning of the Private Securities Litigation Reform
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.
Forward-looking statements include, but are not limited to, those with respect
to management's current views and estimates of future economic circumstances,
industry conditions, company performance and financial results, including the
ability of the Company to grow its involvement in the diagnostic products and
services markets. The known risks, uncertainties and other factors affecting
these forward-looking statements are described from time to time in
Transgenomic's reports to the Securities and Exchange Commission. Any change in
such factors, risks and uncertainties may cause the actual results, events
performance to differ materially from those referred to in such statements.
Accordingly, the company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995 with respect to all statements contained in this press release.
information in this press release is as of the date of the release and
Transgenomic does not undertake any duty to update this information, including
any forward-looking statements, unless required by law.