WaferGen Bio-systems reports results for third quarter 2016
WaferGen Bio-systems, a life sciences company focused on developing and commercializing technology platforms for genomic solutions, announced its financial results for the third quarter ended September 30, 2016.
Key Recent Highlights
Quarterly product revenue increased 27% over the same quarter last year.Placed four ICELL8 Single-Cell Systems in the third quarter of 2016.Closed on September 30, 2016, with $5.1 million in cash, which WaferGen believes is sufficient to fund operations into 2017.
“We are pleased with the continued growth of WaferGen revenues which is being spurred by new applications for our ICELL8, SmartChip and Apollo systems. We are on track to achieve consolidated 2016 revenues exceeding $9 million and provide stockholders more clarity of the benefit they will receive from the merger with Takara Bio USA Holdings, said Rollie Carlson, Ph.D., President and Chief Executive Officer of WaferGen. “We have placed twelve ICELL8 Single-Cell Systems since our initial launch in October of 2015, and are pleased with our sales outlook in the fourth quarter. We are maintaining our full-year 2016 revenue guidance of $10 million to $12 million.”
Third Quarter Ended September 30, 2016
Total revenue for the three months ended September 30, 2016, was approximately $2.4 million, compared to approximately $2.0 million for the prior year period, which included $125,000 of license and royalty revenue related to an agreement which was terminated in early 2016. The increase of $509,000 in product revenue was primarily attributable to increases for the three months ended September 30, 2016, in sales of WaferGen’s SmartChip Systems, with revenue up 62% from the comparable 2015 period, mainly due to ICELL8 sales. Sales of SmartChip consumables and of the Apollo business products also increased, with revenue up 14% and 9%, respectively, from the comparable 2015 period.
Gross profit and gross profit margin related to product sales in the third quarter of 2016 were approximately $1.3 million and 53%, respectively, compared to gross profit and gross profit margin related to product sales of approximately $1.0 million and 55%, respectively, in the third quarter of 2015. The decline in gross margin is mainly due to an increase in the percentage of revenue derived from the sale of systems, which afford lower margins than consumables.
Nine Months Ended September 30, 2016
Total revenue for the nine months ended September 30, 2016, comprising product, license and royalty revenue, was approximately $6.8 million, compared to approximately $4.8 million for the prior year period. This includes license and royalty revenue of $42,000 in the 2016 period, compared to $375,000 in the prior year period, under an agreement that terminated at the end of January 2016. Product revenue for the nine months ended September 30, 2016, was approximately $6.8 million, compared to approximately $4.4 million for the prior year period. The increase of approximately $2.4 million in product revenue was primarily attributable to increases for the nine months ended September 30, 2016, in sales of WaferGen’s SmartChip Systems, with revenue up 175% from the comparable 2015 period, mainly due to ICELL8 sales. Sales of SmartChip consumables and of the Apollo business products also increased, with revenue up 16% and 27%, respectively, from the comparable 2015 period.At September 30, 2016, WaferGen had cash and cash equivalents of approximately $5.1 million.
2016 Guidance
WaferGen continues to expect its full-year 2016 revenue will be between $10.0 million and $12.0 million.
Source: http://www.wafergen.com/