OMAHA, Neb., Nov. 5 /PRNewswire-FirstCall/ -- Transgenomic, Inc.
(OTC Bulletin Board: TBIO) today announced financial results for
the quarter ended September 30, 2009. The Company's financial
results are presented in the tables that follow. Third Quarter 2009
The Company reported a net loss of $366,000 or $0.01 per share for
the third quarter of 2009 as compared to a net loss of $499,000 or
$0.01 per share for the third quarter of 2008. Net sales were $5.0
million during the third quarter of 2009, compared to $5.4 million
during the comparable period of 2008. Gross profit from continuing
operations was $2.8 million or 55 percent during the third quarter
of 2009 compared to $2.9 million or 54 percent during the
comparable period of 2008. Included in cost of sales was $0.3
million of inventory obsolescence. Operating expenses were $3.2
million during the third quarter of 2009 compared to $3.4 million
during the same period of 2008. Excluding the impact of foreign
currency revaluation gains/losses, operating expenses were down by
$163,000 in the third quarter of 2009 compared to the same period
of 2008. Included in operating expenses was $0.2 million related to
the license for Cold-PCR from the Dana-Farber Cancer Institute.
Cash and cash equivalents totaled $4.7 million at September 30,
2009 compared to $4.8 million at December 31, 2008. Nine Months
Ended September 30, 2009 The Company reported a net loss of $2.0
million or $0.04 per share for the nine months ended September 30,
2009, compared to a net loss of $276,000 or $0.01 per share during
the comparable period of 2008. Net sales were $15.5 million for the
nine months ended September 30, 2009, compared to $17.9 million
during the comparable period of 2008. Gross profit was $8.2 million
or 53 percent for the nine months ended September 30, 2009,
compared to $10.3 million or 58 percent in 2008. Operating expenses
were $10.4 million for the nine months ended September 30, 2009
compared to $10.6 million during the same period of 2008. Excluding
the impact of foreign currency revaluation gains/losses, operating
expenses were down by $976,000 for the nine months ended September
30, 2009 compared to the same period in 2008. Comment and Outlook
Craig Tuttle, the Company's President and Chief Executive Officer,
noted, "Net sales for the third quarter declined slightly from the
second quarter of 2009. This decrease is primarily attributable to
lower instrument sales in the U.S. as well as an expected quarterly
decline in our reference laboratory net sales related to summer
vacations in the U.S. We also had two OEM instrument sales that
ended up closing in October that were expected in the third
quarter. This gives us confidence that fourth quarter net sales
will show marked improvement." Tuttle continued, "We remain heavily
engaged in development and validation of our mitochondrial DNA
damage assay applications, our licensed NuroPro assays for
Alzheimer's and Parkinson's disease and our recently announced
license for Cold-PCR from the Dana-Farber Cancer Institute. We have
already seen strong interest from potential customers for Cold-PCR
and hope to have one or more pharma studies initiated during the
fourth quarter. Our beta site trials for our K-Ras mutation
detection kit have been completed and this kit, the first of
several expected, will be launched shortly." Earnings Call Company
management will discuss third quarter 2009 financial results via
teleconference on Thursday, November 5th, 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
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
Thursday, November 19, 2009. Simply dial 800-839-3613 or
402-220-2973 from any telephone. About Transgenomic, Inc.
Transgenomic, Inc. (OTC BB: TBIO.OB, http://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 1,450 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 to 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 Pharmacogenomic Services is a CRO
for pharmacogenomic, translational research and clinical trials.
Transgenomic Cautionary Statements Certain 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. 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 and 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. All 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. Transgenomic, Inc. Summary Financial Results
Unaudited Condensed Consolidated Statements of Operations (Dollars
in thousands except per share data) Three Months Ended Nine Months
Ended September 30, September 30, ------------- ------------- 2009
2008 2009 2008 ---- ---- ---- ---- NET SALES $5,046 $5,367 $15,508
$17,869 COST OF GOODS SOLD 2,293 2,448 7,291 7,570 ----- -----
----- ----- Gross profit 2,753 2,919 8,217 10,299 OPERATING
EXPENSES: Selling, general and administrative 2,215 2,757 7,922
8,824 Research and development 938 684 2,468 1,816 Restructuring
costs - - - 8 --- --- --- --- 3,153 3,441 10,390 10,648 ----- -----
------ ------ LOSS FROM OPERATIONS (400) (522) (2,173) (349) OTHER
INCOME (EXPENSE): Interest income 1 22 14 80 Other, net (1) 14 (4)
13 --- -- --- -- - 36 10 93 --- --- --- --- LOSS BEFORE INCOME
TAXES (400) (486) (2,163) (256) INCOME TAX EXPENSE (BENEFIT) (34)
13 (114) 20 ---- -- ----- -- NET LOSS (366) (499) (2,049) (276)
===== ===== ======= ===== BASIC AND DILUTED LOSS PER SHARE: $(0.01)
$(0.01) $(0.04) $(0.01) ====== ====== ====== ====== BASIC AND
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 49,189,672 49,189,672
49,189,672 49,189,672 Transgenomic, Inc. Summary Financial Results
Unaudited Condensed Consolidated Statements of Cash Flows (Dollars
in thousands) Nine Months Ended September 30, ------------- 2009
2008 ---- ---- NET CASH FLOWS PROVIDED BY (USED IN) OPERATING
ACTIVITIES $237 $(472) NET CASH FLOWS USED IN INVESTING ACTIVITIES
(347) (254) EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON
CASH - (210) --- ---- NET CHANGE IN CASH AND CASH EQUIVALENTS (110)
(936) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,771 5,723
----- ----- CASH AND CASH EQUIVALENTS AT END OF PERIOD $4,661
$4,787 ====== ====== Transgenomic, Inc. Summary Financial Results
Condensed Consolidated Balance Sheets (Dollars in thousands)
(Unaudited) September 30, December 31, 2009 2008 ---- ----- ASSETS
CURRENT ASSETS: Cash and cash equivalents $4,661 $4,771 Accounts
receivable (net of allowances for bad debts of $345 and $388,
respectively) 4,145 5,385 Inventories (net of allowances for
obsolescence of $353 and $14, respectively 4,134 4,775 Prepaid
expenses and other current assets 655 654 --- --- Total current
assets 13,595 15,585 PROPERTY AND EQUIPMENT, NET 1,059 1,198 OTHER
ASSETS: Other assets, (net of accumulated amortization of $478 and
$425, respectively) 701 773 --- --- $15,355 $17,556 ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts
payable $795 $905 Other accrued expenses 2,330 2,810 Accrued
compensation 538 520 --- --- Total current liabilities 3,663 4,235
OTHER LONG TERM LIABILITIES 202 116 --- --- Total liabilities 3,865
4,351 STOCKHOLDERS' EQUITY 11,490 13,205 ------ ------ $15,355
$17,556 ======= ======= DATASOURCE: Transgenomic, Inc. CONTACT:
Debra Schneider, Chief Financial Officer of Transgenomic, Inc.,
+1-402-452-5400, Fax, +1-402-452-5461, Web Site:
http://www.transgenomic.com/
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