WaferGen Bio-systems reports results for first quarter 2016
First quarter revenues represent 68% growth over first quarter 2015
Company reiterates full-year 2016 revenue guidance that reflects 67% to 81% growth over full-year 2015 revenues
WaferGen Bio-systems, a life sciences company focused on developing and commercializing technology platforms for genomic solutions, announced its financial results for the first quarter ended March 31, 2016.
Key Recent Highlights
• Placed two ICELL8™ Single-Cell Systems in Europe – one to European Molecular Biology Laboratory (EMBL) and the second to Karolinska Institutet, in the first quarter of 2016
• Presented results from Genentech, Karolinska Institutet, National Jewish Health, and MD Anderson Cancer Center highlighting ICELL8™ Single-Cell System performance at the Advances in Genome Biology and Technology (“AGBT”) 2016 General Meeting
• Signed a supply agreement with PathAdvantage Associated, a leader in specialized gynecologic pathology and molecular testing services to the Texas medical community. PathAdvantage will utilize SmartChip™ Real-Time PCR solutions to provide their clinicians and patients with valuable microorganism identification testing
• Closed the three months ended March 31, 2016, with $10.9 million in cash, which WaferGen believes is sufficient to fund operations into 2017
“The first quarter was another strong one for WaferGen,” said Rollie Carlson, Ph.D., President and Chief Executive Officer of WaferGen. “We have placed four ICELL8 Single-Cell Systems since our initial launch in October of 2015, and are extremely pleased with our sales pipeline. Based on the feedback we are receiving from potential customers, leading biopharmaceutical companies and academic institutions, the demand for our ICELL8 Single Cell System is strong. Another key indicator for our business is our first quarter performance in Europe, where we generated more revenues during the first three months of the year than we did over the entire course of 2015. Based on all of this, as well as the continued strong performance from our base business, we continue to expect full-year 2016 revenues to be in the range of $12 million to $13 million.”
First Quarter Ended March 31, 2016
Total revenue for the three months ended March 31, 2016, comprising product, license and royalty revenue, was approximately $1.9 million, compared to approximately $1.1 million for the prior year period. This was driven primarily by an $867,000, or 85%, increase in product revenue. The increase in product revenue was primarily attributable to increases for the three months ended March 31, 2016, in sales of WaferGen’s SmartChip capital equipment, with revenue up 465% from the comparable 2015 period, and sales from the Apollo business, with revenue up 85% from the comparable 2015 period. License and royalty revenue, at $42,000 in the three months ended March 31, 2016, decreased 66% from the prior year period.
Gross profit and gross profit margin in the first quarter of 2016 were approximately $1.1 million and 56%, respectively, compared to gross profit and gross profit margin of $732,000 and 64%, respectively, in the first quarter of 2015.
Operating expenses in the three months ended March 31, 2016, increased by $80,000 to $5.4 million, compared to $5.3 million for the same period of 2015. Sales and marketing expenses increased $541,000 to approximately $1.8 million, compared to approximately $1.2 million in the three months ended March 31, 2015. Research and development expenses decreased $199,000 to approximately $2.3 million, compared to approximately $2.5 million for the same quarter in 2015. General and administrative expenses decreased $262,000 to approximately $1.3 million, compared to approximately $1.6 million in the first quarter of 2015.
Net loss for the three months ended March 31, 2016, was approximately $4.4 million, or $0.24 per share, compared to a net loss of approximately $4.8 million, or $0.85 per share, in the same period of 2015.
At March 31, 2016, WaferGen had cash and cash equivalents of approximately $10.9 million.
2016 Guidance
WaferGen continues to expect full-year 2016 revenue will be between $12.0 million and $13.0 million.
Source: http://www.wafergen.com/