Revenue Growth of 21% for the Quarter Driven by
Record Miscarriage Analysis and Pre-Implantation Genetic Screening
Test VolumesConference Call Begins Today at 4:30 p.m. Eastern
Time
CombiMatrix Corporation (NASDAQ:CBMX), a molecular diagnostics
company specializing in DNA-based testing services for prenatal,
miscarriage analysis and postnatal developmental disorders and
pre-implantation genetic screening (PGS) services, today reported
financial results for the three and 12 months ended December 31,
2015.
“Total revenues grew 21% for the quarter and
featured a 33% increase in reproductive health revenue,” said Mark
McDonough, CombiMatrix President and CEO. “Late last year we
announced our heightened focus on in vitro fertilization (IVF) and
miscarriage analysis tests due to our historical growth in the
miscarriage analysis market and recent data supporting the
utilization of these tests. We are particularly pleased to announce
record revenue and test volume for the quarter from both our
miscarriage analysis testing and CombiPGS for fertility testing. We
also benefitted from productivity gains with our newer sales
representatives hired during the second half of the year and from
growth in our customer base. Gross margins improved by 380 basis
points to 46.5% in the fourth quarter due primarily to improved
reimbursement on our miscarriage analysis microarray tests. Strong
cash reimbursement contributed to lower cash consumption, which
declined by 25% in the fourth quarter compared with the prior-year
period.
“For the year, we grew revenues by 25% while
taking actions to strengthen our position in the market for
prenatal and postnatal diagnostics,” added Mr. McDonough. “In
addition to expanding our sales force, we received approval to sell
our prenatal diagnostics and PGS microarray tests in the state of
New York. We also strengthened our billing and payor relations
teams and entered into new contracts with major insurance carriers.
To date, we have executed 21 third-party payor contracts covering
more than 177 million lives, and have also executed 22 state
Medicaid contracts covering more than 28 million lives.”
Fourth Quarter Financial and Operational
Highlights (all comparisons are with the fourth quarter of
2014)
- Total revenues of $2.7 million, up 21%
- Reproductive health revenues of $1.9 million, up 33%
- Reproductive health test volume of 1,369, up 22%
- Number of billable customers up 7% to 243
- Cash collections of $2.3 million, up 21%
- Added 9 million lives covered from three new commercial payor
contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes |
|
Revenues (in
000's) |
|
|
|
|
|
Q4
'15 |
|
Q4
'14 |
|
#
Δ |
|
% Δ |
|
Q4
'15 |
|
Q4
'14 |
|
$
Δ |
|
% Δ |
|
|
|
Prenatal |
|
|
228 |
|
|
|
277 |
|
|
|
(49 |
) |
|
|
(18 |
%) |
|
$ |
293 |
|
|
$ |
364 |
|
|
$ |
(71 |
) |
|
|
(20 |
%) |
|
|
|
Miscarriage analysis |
|
|
939 |
|
|
|
849 |
|
|
|
90 |
|
|
|
11 |
% |
|
|
1,363 |
|
|
|
1,052 |
|
|
|
311 |
|
|
|
30 |
% |
|
|
|
PGS |
|
|
202 |
|
|
|
- |
|
|
|
202 |
|
|
|
- |
|
|
|
222 |
|
|
|
- |
|
|
|
222 |
|
|
|
- |
|
|
|
|
Subtotal - reproductive health |
|
|
1,369 |
|
|
|
1,126 |
|
|
|
243 |
|
|
|
22 |
% |
|
|
1,878 |
|
|
|
1,416 |
|
|
|
462 |
|
|
|
33 |
% |
|
|
|
Pediatric |
|
|
493 |
|
|
|
536 |
|
|
|
(43 |
) |
|
|
(8 |
%) |
|
|
535 |
|
|
|
559 |
|
|
|
(24 |
) |
|
|
(4 |
%) |
|
|
|
Oncology |
|
|
- |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
(100 |
%) |
|
|
- |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
(100 |
%) |
|
|
|
Subtotal - all arrays |
|
|
1,862 |
|
|
|
1,663 |
|
|
|
199 |
|
|
|
12 |
% |
|
|
2,413 |
|
|
|
1,977 |
|
|
|
436 |
|
|
|
22 |
% |
|
|
|
Non-array tests |
|
|
701 |
|
|
|
626 |
|
|
|
75 |
|
|
|
12 |
% |
|
|
236 |
|
|
|
209 |
|
|
|
27 |
|
|
|
13 |
% |
|
|
|
Total - all tests |
|
|
2,563 |
|
|
|
2,289 |
|
|
|
274 |
|
|
|
12 |
% |
|
|
2,649 |
|
|
|
2,186 |
|
|
|
463 |
|
|
|
21 |
% |
|
|
|
Royalties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
31 |
|
|
|
4 |
|
|
|
13 |
% |
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,684 |
|
|
$ |
2,217 |
|
|
$ |
467 |
|
|
|
21 |
% |
|
|
|
Percentage of arrays |
|
|
72.6 |
% |
|
|
72.7 |
% |
|
|
|
|
|
|
91.1 |
% |
|
|
90.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes |
|
Revenues (in
000's) |
|
|
|
|
|
12 Mo's.
'15 |
|
12 Mo's.
'14 |
|
#
Δ |
|
% Δ |
|
12 Mo's.
'15 |
|
12 Mo's.
'14 |
|
$
Δ |
|
% Δ |
|
|
|
Prenatal |
|
|
1,164 |
|
|
|
996 |
|
|
|
168 |
|
|
|
17 |
% |
|
$ |
1,508 |
|
|
$ |
1,343 |
|
|
$ |
165 |
|
|
|
12 |
% |
|
|
|
Miscarriage analysis |
|
|
3,603 |
|
|
|
2,664 |
|
|
|
939 |
|
|
|
35 |
% |
|
|
4,830 |
|
|
|
3,728 |
|
|
|
1,102 |
|
|
|
30 |
% |
|
|
|
PGS |
|
|
359 |
|
|
|
- |
|
|
|
359 |
|
|
|
- |
|
|
|
410 |
|
|
|
- |
|
|
|
410 |
|
|
|
- |
|
|
|
|
Subtotal - reproductive health |
|
|
5,126 |
|
|
|
3,660 |
|
|
|
1,466 |
|
|
|
40 |
% |
|
|
6,748 |
|
|
|
5,071 |
|
|
|
1,677 |
|
|
|
33 |
% |
|
|
|
Pediatric |
|
|
2,050 |
|
|
|
2,024 |
|
|
|
26 |
|
|
|
1 |
% |
|
|
2,222 |
|
|
|
2,064 |
|
|
|
158 |
|
|
|
8 |
% |
|
|
|
Oncology |
|
|
- |
|
|
|
199 |
|
|
|
(199 |
) |
|
|
(100 |
%) |
|
|
- |
|
|
|
181 |
|
|
|
(181 |
) |
|
|
(100 |
%) |
|
|
|
Subtotal - all arrays |
|
|
7,176 |
|
|
|
5,883 |
|
|
|
1,293 |
|
|
|
22 |
% |
|
|
8,970 |
|
|
|
7,316 |
|
|
|
1,654 |
|
|
|
23 |
% |
|
|
|
Non-array tests |
|
|
2,826 |
|
|
|
1,878 |
|
|
|
948 |
|
|
|
50 |
% |
|
|
971 |
|
|
|
577 |
|
|
|
394 |
|
|
|
68 |
% |
|
|
|
Total - all tests |
|
|
10,002 |
|
|
|
7,761 |
|
|
|
2,241 |
|
|
|
29 |
% |
|
|
9,941 |
|
|
|
7,893 |
|
|
|
2,048 |
|
|
|
26 |
% |
|
|
|
Royalties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147 |
|
|
|
149 |
|
|
|
(2 |
) |
|
|
(1 |
%) |
|
|
|
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10,088 |
|
|
$ |
8,042 |
|
|
$ |
2,046 |
|
|
|
25 |
% |
|
|
|
Percentage of
arrays |
|
|
72 |
% |
|
|
76 |
% |
|
|
|
|
|
|
90 |
% |
|
|
93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Results
Three Months Ended December 31, 2015 and 2014
Total revenues for the fourth quarter of 2015
increased 21% to $2.7 million from $2.2 million for the fourth
quarter of 2014. Revenues for the fourth quarter of 2015 were
comprised of $2.65 million of diagnostic services revenue and
$35,000 in royalties. Reproductive health diagnostic test revenue,
which includes prenatal microarrays, miscarriage analysis and PGS,
increased 33% to $1.9 million and related testing volumes increased
22% to 1,369. The fourth quarter 2015 revenue increase was driven
primarily by higher test volumes, particularly for miscarriage
analysis and PGS, as well as by a 7% increase in quarterly billable
customers to 243.
Total operating expenses were $4.2 million for
the fourth quarter of 2015, compared with $3.8 million for the
fourth quarter of 2014. The increase was due primarily to an
increase in cost of services related to higher test volumes, an
increase in sales and marketing expenses related to sales force
expansion and higher general and administrative expenses due to
increased headcount, recruitment and investor relations expenses.
Gross margins for the fourth quarter of 2015 improved to 46.5% from
42.7% for the fourth quarter of 2014 due primarily to improved
average reimbursement on miscarriage analysis testing.
The net loss attributable to common stockholders
for the fourth quarter of 2015 was $1.7 million, or $2.02 per
share, compared with a net loss attributable to common stockholders
for the fourth quarter of 2014 of $1.6 million, or $2.19 per
share. The higher net loss was attributable to the
recognition of $168,000 in non-cash, deemed dividends related to
the modification of Series E convertible preferred stock and
warrants in October of 2015 that were originally sold to investors
as part of the $4.9 million equity financing completed in February
2015.
12 Months Ended December 31, 2015 and 2014
Total revenues for 2015 increased 25% to $10.1
million from $8.0 million for 2014. Revenues for 2015
included $9.9 million in diagnostic services revenue and $147,000
in royalty revenues.
Operating expenses for 2015 decreased by
$170,000 from 2014. General and administrative expenses decreased
by $1.6 million driven primarily by lower litigation expenses,
which were $114,000 in 2015 compared with $2.2 million in 2014. The
decrease in general and administrative expenses was offset by
increased cost of services related to higher test volumes and
increased sales and marketing expenses due to salesforce
expansion. Research and development expenses also decreased
as a result of the increased commercial focus in 2015 compared with
2014 when more new test development work was being performed.
Gross margins were 45.2% for 2015, compared with 43.8% for
2014.
The net loss attributable to common stockholders
for 2015 of $7.7 million, or $9.22 per share, improved by $1.0
million from a net loss attributable to common stockholders for
2014 of $8.7 million, or $11.84 per share. This improvement
occurred despite the recognition in 2015 of $1.1 million non-cash,
deemed dividends related to the issuance and modification of Series
E convertible preferred stock sold to investors as part of the $4.9
million equity financing completed in February 2015.
The Company reported $3.9 million in cash, cash
equivalents and short-term investments as of December 31, 2015,
compared with $5.2 million as of December 31, 2014. The Company
used $1.5 million and $5.7 million in cash to fund operating
activities during the fourth quarter and 12 months ended December
31, 2015, respectively, compared with $2.1 million and $8.7 million
to fund operating activities during the comparable 2014 periods,
respectively. The significant decreases in net cash used to fund
operating activities for the 2015 periods resulted from lower
litigation expenses, coupled with improved cash reimbursement of
$2.3 million and $9.3 million for the fourth quarter and 12 months
ended December 31, 2015, respectively, compared with $1.9 million
and $7.4 million in the comparable 2014 periods, respectively.
Conference Call and Webcast
CombiMatrix will hold an investment-community
conference call and audio webcast today beginning at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time). The conference call dial-in
numbers are (866) 634-2258 for domestic callers and (330) 863-3454
for international callers. A live webcast of the call will be
available at http://investor.combimatrix.com/events.cfm
A recording of the call will be available for
seven days beginning approximately two hours after the completion
of the call by dialing (855) 859-2056 for domestic callers or (404)
537-3406 for international callers, and entering passcode 42555328.
The webcast of the call will be archived for 30 days on the
company’s website at
http://investor.combimatrix.com/events.cfm.
About CombiMatrix
Corporation
CombiMatrix Corporation provides valuable
molecular diagnostic solutions and comprehensive clinical support
to foster the highest quality in patient care. CombiMatrix
specializes in prenatal diagnostics, miscarriage analysis for
recurrent pregnancy loss, pediatric genetics and pre-implantation
genetic screening, offering DNA-based testing for the detection of
genetic abnormalities beyond what can be identified through
traditional methodologies. CombiMatrix performs genetic testing
utilizing a variety of advanced cytogenomic techniques, including
chromosomal microarray, standardized and customized fluorescence in
situ hybridization (FISH) and high-resolution karyotyping.
CombiMatrix is dedicated to providing high-level clinical support
for healthcare professionals in order to help them incorporate the
results of complex genetic testing into patient-centered medical
decision making. Additional information about CombiMatrix is
available at www.combimatrix.com or by calling (800) 710-0624.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This press release contains forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
statements are based upon our current expectations, speak only as
of the date hereof and are subject to change. All statements, other
than statements of historical fact included in this press release,
are forward-looking statements. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "goal," "predicts," "believes," "seeks,"
"estimates," "may," "will," "should," "would," "could,"
"potential," "continue," "ongoing," similar expressions, and
variations or negatives of these words and include, but are not
limited to, statements regarding projected results of operations
and management's future business, operational and strategic plans,
recruiting efforts and test menu expansion. These forward-looking
statements are not guarantees of future results and are subject to
risks, uncertainties and assumptions that could cause our actual
results to differ materially and adversely from those expressed in
any forward-looking statement. The risks and uncertainties referred
to above include, but are not limited to: our ability to
successfully expand the base of our customers, add to the menu of
our diagnostic tests, develop and introduce new tests and related
reports, expand and improve our current suite of services, optimize
the reimbursements received for our microarray testing services,
and increase operating margins by improving overall productivity
and expanding sales volumes; our ability to successfully accelerate
sales, steadily increase the size of our customer rosters in all of
our genetic testing markets; our ability to attract and retain
a qualified sales force in wider geographies; our ability to ramp
production from our sales; rapid technological change in our
markets; changes in demand for our future services; legislative,
regulatory and competitive developments; general economic
conditions; and various other factors. Further information on
potential factors that could affect our financial results is
included in our Annual Report on Form 10-K, Quarterly Reports of
Form 10-Q, and in other filings with the Securities and
Exchange Commission. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason, except as
required by law.
Company
Contact: |
Investor
Contact: |
Mark McDonough |
LHA |
President & CEO,
CombiMatrix Corporation |
Jody Cain |
(949) 753-0624 |
(310) 691-7100 |
|
jcain@lhai.com |
Tables to FollowCOMBIMATRIX
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except share and per
share information)(Unaudited)
|
|
|
|
For the Three Months Ended December
31, |
|
For the Years Ended December 31, |
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Diagnostic
services |
|
$ |
2,649 |
|
|
$ |
2,186 |
|
|
$ |
9,941 |
|
|
$ |
7,893 |
|
|
|
Royalties |
|
|
35 |
|
|
|
31 |
|
|
|
147 |
|
|
|
149 |
|
|
|
Total revenues |
|
|
2,684 |
|
|
|
2,217 |
|
|
|
10,088 |
|
|
|
8,042 |
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
1,416 |
|
|
|
1,252 |
|
|
|
5,444 |
|
|
|
4,432 |
|
|
|
Research and
development |
|
|
114 |
|
|
|
139 |
|
|
|
466 |
|
|
|
725 |
|
|
|
Sales and
marketing |
|
|
1,321 |
|
|
|
1,163 |
|
|
|
4,979 |
|
|
|
4,349 |
|
|
|
General and
administrative |
|
|
1,328 |
|
|
|
1,220 |
|
|
|
5,540 |
|
|
|
7,176 |
|
|
|
Patent amortization and
royalties |
|
|
25 |
|
|
|
26 |
|
|
|
100 |
|
|
|
114 |
|
|
|
Impairment of
cost-basis investment |
|
|
- |
|
|
|
- |
|
|
|
97 |
|
|
|
- |
|
|
|
Total operating
expenses |
|
|
4,204 |
|
|
|
3,800 |
|
|
|
16,626 |
|
|
|
16,796 |
|
|
|
Operating loss |
|
|
(1,520 |
) |
|
|
(1,583 |
) |
|
|
(6,538 |
) |
|
|
(8,754 |
) |
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(17 |
) |
|
|
(34 |
) |
|
|
(63 |
) |
|
|
(61 |
) |
|
|
Warrant derivative
gains |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
152 |
|
|
|
Warrant modification
charge |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(44 |
) |
|
|
Total other income
(expense) |
|
|
(17 |
) |
|
|
(34 |
) |
|
|
(63 |
) |
|
|
47 |
|
|
|
Net loss |
|
$ |
(1,537 |
) |
|
$ |
(1,617 |
) |
|
$ |
(6,601 |
) |
|
$ |
(8,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividends from issuing and modifying |
|
|
|
|
|
|
|
|
|
|
Series E convertible
preferred stock and warrants |
|
|
(168 |
) |
|
|
- |
|
|
|
(1,058 |
) |
|
|
- |
|
|
|
Net loss attributable to common stockholders |
|
$ |
(1,705 |
) |
|
$ |
(1,617 |
) |
|
$ |
(7,659 |
) |
|
$ |
(8,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
|
$ |
(1.82 |
) |
|
$ |
(2.19 |
) |
|
$ |
(7.95 |
) |
|
$ |
(11.84 |
) |
|
|
Deemed dividends from issuing and modifying |
|
|
|
|
|
|
|
|
|
|
Series E convertible
preferred stock and warrants |
|
|
(0.20 |
) |
|
|
- |
|
|
|
(1.27 |
) |
|
|
- |
|
|
|
Basic and diluted net loss per share attributable |
|
|
|
|
|
|
|
|
|
|
to common
stockholders |
|
$ |
(2.02 |
) |
|
$ |
(2.19 |
) |
|
$ |
(9.22 |
) |
|
$ |
(11.84 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average |
|
|
|
|
|
|
|
|
|
|
common shares
outstanding |
|
|
845,374 |
|
|
|
737,528 |
|
|
|
830,835 |
|
|
|
735,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET INFORMATION:
|
December 31, |
December 31, |
|
|
2015 |
|
|
2014 |
|
|
|
|
Total cash, cash
equivalents and short-term investments |
$ |
3,901 |
|
$ |
5,240 |
|
Total assets |
$ |
7,922 |
|
$ |
8,632 |
|
Total liabilities |
$ |
2,066 |
|
$ |
1,512 |
|
Total stockholders’
equity |
$ |
5,856 |
|
$ |
7,120 |
|
Combimatrix Corp. (MM) (NASDAQ:CBMX)
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Combimatrix Corp. (MM) (NASDAQ:CBMX)
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De Jul 2023 a Jul 2024