Transgenomic reports Q2 2009 financials

Transgenomic, Inc. (OTC Bulletin Board: TBIO) today announced financial results for the quarter ended June 30, 2009.

The Company's financial results are presented in the tables that follow.

Second Quarter 2009

The Company reported a net loss of $730,000 or $0.01 per share for the second quarter of 2009 as compared to net income of $101,000 or $0.00 per share for the second quarter of 2008.

Net sales from continuing operations were $5.5 million during the second quarter of 2009, compared to $6.2 million during the comparable period of 2008. Gross profit from continuing operations was $2.7 million or 48 percent during the second quarter of 2009 compared to $3.7 million or 60 percent during the comparable period of 2008. Operating expenses from continuing operations were $3.4 million during the second quarter of 2009 compared to $3.7 million during the same period of 2008. Excluding the impact of foreign currency revaluation gains/losses, operating expenses were down by $672,000 in the second quarter of 2009 compared to the same period of 2008.

Cash and cash equivalents totaled $4.8 million at June 30, 2009 which is unchanged from December 31, 2008.

Six Months Ended June 30, 2009

The Company reported a net loss of $1.7 million or $0.03 per share for the six months ended June 30, 2009, compared to net income of $223,000 or $0.00 per share during the comparable period of 2008.

Net sales from continuing operations were $10.5 million for the six months ended June 30, 2009, compared to $12.5 million during the comparable period of 2008. Gross profit from continuing operations was $5.5 million or 52 percent for the six months ended June 30, 2009, compared to $7.4 million or 59 percent in 2008. Operating expenses from continuing operations were $7.2 million for both the six months ended June 30, 2008 and 2009. Excluding the impact of foreign currency revaluation gains/losses, operating expenses were down by $812,000 for the six months ended June 30, 2009 compared to the same period in 2008.

Craig Tuttle, the Company's President and Chief Executive Officer, noted, "It is rewarding to see a sales rebound well above our first quarter results. While we have not quite reached quarterly sales at our former run rate prior to the economy decline, sales in second quarter did increase $500,000 above first quarter. In addition, we do see interest in new instrument sales opportunities throughout the remainder of this fiscal year and next year. Budget approval processing will drive the timing of these sales. We are seeing several new projects in our Pharmacogenomics lab which have the potential to move forward toward full clinical trial studies as well as a number of discovery projects with a similar outcome potential. As such, we are optimistic that sales will return to our 2008 levels within a quarter or two. In addition, with significant product launches targeted for the fourth quarter, notably our high sensitivity assay for KRAS mutations as well as our NuroPro assays for Alzheimer's and Parkinson's disease, we anticipate a return to year-over-year sales growth by next year. Equally positive, our Molecular Diagnostic Laboratory has grown to 62% in the six months ended June 30, 2009 compared to the same period in 2008. This growth rate remains below our full year 2008 growth which was 70% year-over-year. When the economic situation improves, we fully expect an improvement in the growth rate in our diagnostic testing net sales. In addition there will be impact related to the new assays being added."