ALISO VIEJO, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Clarient, Inc. , a premier anatomic pathology and molecular testing services resource for pathologists, oncologists and the pharmaceutical industry, today reported financial results for the second quarter and six months ended June 30, 2009. Financial results included a 40 percent increase in revenue for the second quarter of 2009 versus the second quarter of 2008, and a 43 percent increase in revenue for this year's first six months versus the first six months of 2008.
Case volume in the second quarter increased to 33,853 cases, a 29.2 percent increase from the same period in 2008. For the second quarter of 2009, testing volume totaled 236,196, up 21.7 percent from the same period in 2008. The Company's customer base of oncology and pathology practices in the U.S. increased to more than 1,000 active clients at June 30, 2009, from 950 active clients at March 31, 2009.
The Company's operating income for the second quarter of 2009 was $771 thousand compared with an operating loss of $1.7 million for the same period of 2008. For the six months ended June 30, 2009, operating income was $2.3 million versus an operating loss of $1.9 million for the six months ended June 30, 2008.
For the first six months of 2009, the net loss was $127 thousand, or $0.02 loss per share, compared with a net loss of $5.2 million, or $0.07 loss per share. Net loss applicable to common stockholders for this year's six-month period, including the non-cash deemed dividend mentioned above and a $1.5 million gain on discontinued operations from the satisfaction of post-closing conditions related to the divestiture of its instrument systems business in March of 2007, was a $0.06 loss per share.
Operating expenses were $13.0 million for the second quarter of 2009, up 29 percent from $10.1 million in the same quarter of 2008. For the first six months of 2009, operating expenses totaled $25.8 million, versus $18.8 million in the year-earlier period. The increase in operating expenses was largely related to additional sales and marketing personnel costs, increased bad debt expense, higher stock compensation expense, and legal and accounting expenses related to certain business development activities.
Ray Land, Senior Vice President and Chief Financial Officer, said, "As expected, we were able to complete the second tranche of our private placement of convertible preferred stock with Oak Investment Partners on May 14, 2009 which considerably strengthened our balance sheet. In addition, we collected $19.9 million in cash in the second quarter which is a 34% increase over our first quarter. This is a strong indication that our billing and collection process is improving."
Andrews concluded, "Clarient's business model built on a balanced revenue stream across multiple cancer types and technologies is well positioned in the new environment of health reform and cost containment. The opportunities for Clarient to use its established commercial engine to bring new advanced tests to market are numerous and growing daily, and we are hard at work identifying which of those opportunities we will pursue while maintaining a focus on profitability."
Forward Looking Statements
Certain statements herein regarding Clarient, Inc. contain forward-looking statements that involve risks and uncertainty. Future events and the Company's actual results could differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to: the Company's ability to continue to develop and expand its diagnostic services business, the Company's ability to expand and maintain a successful sales and marketing organization, the Company's ability to maintain compliance with financial and other covenants under the Company's credit facilities, limitations on the Company's ability to borrow funds under its credit facilities based on the Company's qualified accounts receivable and other liquidity factors, the Company's ability to obtain annual renewals of or replacements for its credit facilities, the effects of a going concern audit opinion on the Company's operations, the Company's ability to successfully transition its billing function in-house from a third party vendor, whether the conditions to payment of all or any portion of the contingent consideration from the Company's prior sale of its instrument systems business to Zeiss are satisfied, the Company's ability to remediate the material weaknesses in the Company's internal control over financial reporting, the continuation of favorable third party payer reimbursement for laboratory tests, the Company's ability to obtain additional financing on acceptable terms or at all, unanticipated expenses or liabilities or other adverse events affecting cash flow, uncertainty of success in identifying and developing new diagnostic tests or novel markers, the Company's ability to fund development of new diagnostic tests and novel markers and the amount of resources the Company determines to apply to novel marker development and commercialization, failure to obtain FDA clearance or approval for particular applications, the Company's ability to compete with other technologies and with emerging competitors in novel cancer diagnostics and dependence on third parties for collaboration in developing new tests, and risks detailed from time to time in the Company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Recent experience with respect to laboratory services, revenues and results of operations may not be indicative of future results for the reasons set forth above.
Adjusted EBITDA Definition
"Adjusted EBITDA" is defined by the Company as income or loss from continuing operations before (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense and (iv) stock-based compensation expense. Adjusted EBITDA as defined by the Company may differ from non-GAAP measures used by other companies and is not a measurement under GAAP. Management believes that using Adjusted EBITDA as a metric can enhance an overall understanding of the Company's expected financial performance from ongoing operations, and Adjusted EBITDA is used by management for that purpose. We believe that Adjusted EBITDA is frequently used by analysts, investors and other interested parties in evaluating companies such as ours and that it provides a useful measure of our financial performance since its use eliminates the effects of period to period changes in costs associated with impairment of assets related to capital investments, interest on our debt, capital lease obligations and non-cash stock based compensation charges. In addition, under our credit facilities with Gemino Healthcare Finance LLC and Comerica Bank we are required to maintain minimum levels of Adjusted EBITDA.
Clarient, Inc.
