WaferGen Bio-systems reports results for fourth quarter and fiscal year 2015
Company Reports Record Quarterly Revenues of $2.4 Million that Include Initial Two ICELL8™ Single-Cell System Sales Fourth Quarter Revenues Represent 20% Growth over Third Quarter 2015 and 49% over Fourth Quarter 2014 Full-Year 2016 Revenue Guidance Reflects 67% to 81% Growth over Full-Year 2015 Revenues.
WaferGen Bio-systems, Inc., a life sciences company focused on developing and commercializing technology platforms for genomic solutions, announced its financial results for the fourth quarter and 12-months ended December 31, 2015.
Key Recent Highlights
• Completed initial two commercial sales of ICELL8™ Single-Cell System – one to a major global pharmaceutical company and the second to the Neural Stem Cell Institute, a not-for-profit organization that specializes in translational therapeutic stem cell research for diseases of the nervous system
• 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 BloodCenter of Wisconsin (“BCW”), a not-for-profit organization that specializes in blood services, diagnostic testing, organ, tissue and marrow donation, medical services and leading-edge research, to provide SmartChip™ Real-Time PCR solutions to BCW to perform high-throughput molecular red cell antigen typing of blood donors.
• Announced publication of BGI data in GigaScience demonstrating utility of ICELL8™ technology for single-cell analysis in cancer research
• Raised net proceeds of approximately $15.7 million in a public offering in October
“We are very pleased with the trajectory of our business,” said Rollie Carlson, Ph.D., President and Chief Executive Officer of WaferGen. “The launch of our ICELL8 Single-Cell System is off to a strong start, with the first two commercial sales having been recorded in the fourth quarter. In addition, the feedback we received from researchers regarding the ICELL8 at AGBT, where WaferGen had a substantial presence, was highly encouraging, and reinforced our confidence in the significant commercial potential of this new product. Moreover, the demand for our existing products continues to be strong, and we are optimistic about our future prospects here, as well. Following our recent public offering, we are also in a solid financial position as we move into 2016. We are confident that WaferGen is well positioned to achieve the strong 67% to 81% revenue growth the company anticipates in 2016.”
Fourth Quarter Ended December 31, 2015
Total revenue for the three months ended December 31, 2015, comprising product, license and royalty revenue, was approximately $2.4 million, compared to approximately $1.6 million for the prior year period. This was driven primarily by a $789,000, or 53%, increase in product revenue. The increase in product revenue was primarily attributable to increases for the three months ended December 31, 2015, in sales of SmartChip Real-Time PCR Chip panels and services, with revenue up 178% from the comparable 2014 period, and sales of our Real-Time PCR Chip capital equipment, with revenue up 36% from the comparable 2014 period. License and royalty revenue, at $125,000 in the three months ended December 31, 2015, was unchanged from the prior year period.
Gross profit and gross profit margins in the fourth quarter of 2015 were approximately $1.1 million and 47%, respectively, compared to gross profit and gross profit margins of approximately $0.8 million and 48%, respectively, in the fourth quarter of 2014.
Operating expenses in the three months ended December 31, 2015, increased by $80,000 to $4.4 million, compared to $4.3 million for the same period of 2014. Sales and marketing expenses increased $328,000 to approximately $1.5 million, compared to approximately $1.1 million in the three months ended December 31, 2014. Research and development expenses increased $175,000 to approximately $2.1 million, compared to approximately $2.0 million for the same quarter in 2014. General and administrative expenses decreased $423,000 to approximately $0.8 million, compared to approximately $1.2 million in the fourth quarter of 2014.
Net loss for the three months ended December 31, 2015, was approximately $3.2 million, compared to a net loss of approximately $3.3 million in the same period of 2014. Net loss attributable to common stockholders for the three months ended December 31, 2015, was approximately $7.9 million, or $0.57 per share, compared to a net loss attributable to common stockholders of approximately $3.3 million, or $0.58 per share, in the same period of 2014. Net loss attributable to common stockholders for the three months ended December 31, 2015, includes an accretion charge of approximately $4.7 million related to preferred stock issued in our October 2015 public offering.
12-Months Ended December 31, 2015
Total revenue for the 12-months ended December 31, 2015, comprising product, license and royalty revenue, was approximately $7.2 million, compared to approximately $6.0 million for full-year 2014. This growth was primarily due to an increase in sales of our SmartChip Real-Time PCR Chip panels and services in the 12-months ended December 31, 2015, with revenue up 124% from full-year 2014. License and royalty revenue was unchanged at $500,000 in the 12-months ended December 31, 2015.
In the 12-months ended December 31, 2015, gross profit and gross profit margins were approximately $3.9 million and 55%, respectively, compared to gross profit and gross profit margins of approximately $3.4 million and 57%, respectively, for full-year 2014.
Operating expenses in the 12-months ended December 31, 2015 totaled approximately $19.0 million, compared to approximately $15.9 million for full-year 2014. Research and development expenses increased approximately $2.6 million to approximately $9.3 million, compared to approximately $6.7 million for full-year 2014, primarily as a result of increased activities related to the development and commercialization of the company’s single-cell products. Sales and marketing expenses increased $619,000 to approximately $5.4 million, compared to approximately $4.7 million for full-year 2014. General and administrative expenses for 2015 were nearly unchanged from 2014 at $4.4 million.
Net loss for 2015 was approximately $15.3 million, an increase of approximately $4.6 million, compared to a net loss of approximately $10.7 million for 2014. Net loss attributable to common stockholders for 2015 was approximately $20.0 million, or $2.58 per share, compared to a net loss attributable to common stockholders of approximately $10.7 million, or $4.17 per share, for 2014. Net loss attributable to common stockholders in 2015 includes an accretion charge of approximately $4.7 million related to preferred stock issued in our October 2015 public offering.
At December 31, 2015, WaferGen had cash and cash equivalents of approximately $15.2 million.
2016 Guidance
WaferGen continues to expect full-year 2016 revenue to be between $12.0 million and $13.0 million.
Source: WaferGen