Response Biomedical Corporation (TSX: RBM, OTCBB: RPBIF) today announced financial results for the first quarter ended March 31, 2010.
“While we expect to see continued year-over-year annual revenue growth in 2010 as compared to 2009, our Q1 2010 results are significantly lower than those reported in Q1 2009”
Total revenues for the three month period ended March 31, 2010 decreased 43% to $1,549,479 compared to $2,712,401 for the same period last year.
Expenses for the three month period ended March 31, 2010 increased 18% to $2,747,614 compared to $2,326,336 for the same period last year. Net loss increased by 54% to $2,660,048. As at March 31, 2010, the Company had a working capital balance of $4,818,906 compared to $6,998,529 as at December 31, 2009.
"While we expect to see continued year-over-year annual revenue growth in 2010 as compared to 2009, our Q1 2010 results are significantly lower than those reported in Q1 2009," said S. Wayne Kay, Chief Executive Officer. "Q1 2009 was a record quarter with the launch of the cardiac product line by Roche Diagnostics in the U.S. This year we are disappointed by a very weak seasonal flu period and the delay of a milestone payment tied to the agreement on acceptance criteria of the CLIA-waiver for NT-proBNP, which is still the subject of discussions with the U.S. Food and Drug Administration. This fluctuation in quarterly revenues is not unexpected. Certain quarterly revenues are tied to the recognition of contract service milestones, which do not occur in every quarter. Fluctuations in product mix of Reader sales versus test kit sales for new partners and distributors also impact quarterly revenues. Despite our weak results in Q1, we are confident that we are approaching profitability, although our timetable may be lengthened somewhat. In addition, we are closely managing our current cash position and concurrently pursuing several debt and equity financing alternatives to provide our needed bridge to profitability. If we are successful, as in the past, in obtaining necessary capital, we will communicate further details to shareholders once we have an agreement in place."