IRVINE, Calif., Feb. 25, 2015 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics company specializing in DNA-based testing services for pre- and postnatal developmental disorders, today reported financial results for the fourth quarter and full year ended December 31, 2014. The Company will host a conference call and webcast at 1:30 p.m. PST, today.
“We delivered record test volumes and revenues during the quarter and full year as we continue to execute on our commercial and reimbursement strategies,” said Mark McDonough, President and Chief Executive Officer of CombiMatrix. “We successfully completed key initiatives, such as launching new products, signing on new customers and recruiting expertise into the Company that should position us well for 2015 and beyond. On February 13, we announced that we strengthened our balance sheet by raising $4.9 million in gross proceeds from a registered direct offering. In early January 2015, we announced that the Superior Court of Orange County’s tentative decision on the litigation was decided in our favor. As a result of these and many other recent accomplishments, we are looking forward to a productive and successful 2015.”
Operational Highlights
- Record prenatal microarray volume of 1,126 tests in the fourth quarter of 2014, a 67 percent increase compared to the fourth quarter of 2013 (see table below). For the year ended December 31, 2014, core prenatal microarray test volume grew 65 percent compared to the same period in 2013.
- The Company’s customer base continued to grow, reaching 226 billable customers during the fourth quarter of 2014, a new record for CombiMatrix, compared to 136 billable customers during the fourth quarter of 2013.
- Strong cash collections of $1.95 million and $7.36 million for the fourth quarter and year ended December 31, 2014, respectively.
Additional test volume and revenue data are as follows:
| Volumes | Revenues (in 000’s) | |||||||||||
| Q4 ’14 | Q4 ’13 | % Δ | Q4 ’14 | Q4 ’13 | % Δ | |||||||
| Prenatal | 277 | 183 | 51.4% | $ 364 | $ 227 | 60.4% | ||||||
| Miscarriage analysis | 849 | 491 | 72.9% | 1,052 | 805 | 30.7% | ||||||
| Subtotal - prenatal arrays | 1,126 | 674 | 67.1% | 1,416 | 1,032 | 37.2% | ||||||
| Pediatric | 536 | 500 | 7.2% | 559 | 541 | 3.3% | ||||||
| Oncology | 1 | 85 | -98.8% | 2 | 72 | -97.2% | ||||||
| Subtotal - all arrays | 1,663 | 1,259 | 32.1% | 1,977 | 1,645 | 20.2% | ||||||
| Non-array tests | 626 | 250 | 150.4% | 209 | 60 | 248.3% | ||||||
| Total - all tests | 2,289 | 1,509 | 51.7% | 2,186 | 1,705 | 28.2% | ||||||
| Royalties | 31 | 48 | -35.4% | |||||||||
| Total revenues | $ 2,217 | $ 1,753 | 26.5% | |||||||||
| % Arrays of Total | 73% | 83% | -12.9% | 90% | 96% | -6.3% | ||||||
| Volumes | Revenues (in 000’s) | |||||||||||
| YTD ’14 | YTD ’13 | % Δ | YTD ’14 | YTD ’13 | % Δ | |||||||
| Prenatal | 996 | 718 | 38.7% | $ 1,343 | $ 994 | 35.1% | ||||||
| Miscarriage analysis | 2,664 | 1,504 | 77.1% | 3,728 | 2,557 | 45.8% | ||||||
| Subtotal - prenatal arrays | 3,660 | 2,222 | 64.7% | 5,071 | 3,551 | 42.8% | ||||||
| Pediatric | 2,024 | 1,984 | 2.0% | 2,064 | 2,045 | 0.9% | ||||||
| Oncology | 199 | 334 | -40.4% | 181 | 204 | -11.3% | ||||||
| Subtotal - all arrays | 5,883 | 4,540 | 29.6% | 7,316 | 5,800 | 26.1% | ||||||
| Non-array tests | 1,878 | 1,610 | 16.6% | 577 | 404 | 42.8% | ||||||
| Total - all tests | 7,761 | 6,150 | 26.2% | 7,893 | 6,204 | 27.2% | ||||||
| Royalties | 149 | 163 | -8.0% | |||||||||
| Total revenues | $ 8,042 | $ 6,367 | 26.3% | |||||||||
| % Arrays of Total | 76% | 74% | 2.7% | 93% | 93% | -0.9% | ||||||
Financial Results
Quarter ended December 31, 2014 compared to Quarter ended December 31, 2013
For the quarter ended December 31, 2014, CombiMatrix reported total revenues of $2.2 million, a 26.5 percent increase over total revenues of $1.8 million for the fourth quarter of 2013. The increase in revenues was driven primarily by increased volumes of both microarray and non-microarray diagnostic tests despite a reduction in oncology volumes and revenues as the Company exited that business during 2014.
Total operating expenses were $3.8 million for the fourth quarter of 2014 compared to $3.6 million in the comparable quarter of 2013. The increase was driven primarily by continued investment in revenue generating departments such as sales, marketing, billing and genetic counseling. General and administrative expenses decreased primarily due to executive relocation and recruiting costs incurred during the fourth quarter of 2013 that did not repeat in the fourth quarter of 2014.
Net loss was $1.6 million for the fourth quarter of 2014 compared to a net loss of $1.4 million in the comparable quarter of 2013. The net loss in the fourth quarter of 2014 was negatively impacted primarily by increased sales and marketing costs discussed above, as well as from certain warrant derivative gains recognized during the fourth quarter of 2013 that did not repeat during the fourth quarter of 2014.
The Company reported a net loss attributable to common stockholders of $1.6 million, or $0.15 per basic and diluted shares outstanding in the fourth quarter of 2014, compared to a net loss attributable to common stockholders of $7.8 million, or $1.44 per basic and diluted shares outstanding, for the same period in 2013. The fourth quarter of 2013 included deemed dividends from Series D convertible preferred stock of $(6.4 million) or $(1.18) per share, which did not repeat in 2014.
Year ended December 31, 2014 compared to Year ended December 31, 2013
For the year ended December 31, 2014, CombiMatrix reported total revenues of $8.0 million, a 26 percent increase over total revenues of $6.4 million for the same period in 2013. The increase in revenues was also driven primarily by increased volumes of microarray diagnostic tests year-over-year, despite decreased oncology volumes and revenues as the Company exited that business during 2014.
Total operating expenses were $16.8 million for the year ended December 31, 2014, compared to $12.8 million in the comparable period in 2013. The increase was driven primarily by continued investment in sales and marketing as well as higher legal defense costs from ongoing litigation, which were $2.2 million for the year ended December 31, 2014, compared to only $244,000 in the comparable period in 2013.
Net loss was $8.7 million for the year ended December 31, 2014, compared to $3.9 million in the comparable period in 2013. A significant component of the increase period-over-period was due to $2.8 million of non-operating, non-cash warrant derivative gains recognized in 2013 compared to only $152,000 recognized in 2014. A reduction in the number of derivative warrants outstanding due to warrant exercises in early 2014 as well as the warrant contract modifications that occurred in the second quarter of 2014 were the primary reasons for the decrease in the gains period-over-period. Increases in sales and marketing and general and administrative expenses also contributed to the overall increase in net loss year-over-year.
Net loss attributable to common stockholders was $8.7 million, or $0.79 per basic and diluted shares outstanding for the year December 31, 2014, compared to $12.2 million, or $3.11 per basic and diluted shares outstanding in the prior year period.
Cash, cash equivalents and short-term investments totaled $5.2 million as of December 31, 2014, compared to $14.0 million as of December 31, 2013. For the fourth quarter and year ended December 31, 2014, net cash used in operating activities was $2.0 million and $8.6 million, respectively, compared to $1.5 million and $5.6 million in the comparable 2013 periods, respectively. The increase in net cash used in operating activities for all periods presented was due primarily to increased cash spent on ongoing litigation, which totaled $339,000 and $2.3 million for the fourth quarter and year ended December 31, 2014, respectively, compared to only $70,000 and $217,000 for the comparable 2013 periods, respectively. The increase in cash used in operating activities was partially mitigated by record cash reimbursement on diagnostic services billed, which were $7.4 million for the year ended December 31, 2014, compared to $5.8 million for 2013.
In February 2015, CombiMatrix raised $4.9 million of gross proceeds from a registered direct offering to certain preexisting, accredited institutional investors in the Company. Inclusive of the cash proceeds from the recently completed financing, the Company’s cash and cash equivalents are expected to be sufficient to fund current operations through the middle of 2016. This projection does not include any proceeds from possible future partnerships or additional financing activities, nor does it account for future litigation costs, which are unpredictable.
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