Accelr8 Technology Corporation (NYSE Amex: AXK) announced its financial results for the first fiscal quarter ended October 31, 2010. Net sales revenues totaled $466,362; net income from operations was $49,974 with total net income of $67,250. For the previous quarter, net sales were $15,549 with a loss from operations of $(423,373) and a total net loss of $(411,981). Shareholders' equity totaled $4,985,682 at the current quarter's end, up from $4,909,778 at the end of the previous fiscal quarter.
In a subsequent event, Accelr8 extended its technology evaluation agreement for its BACcel™ rapid diagnostic system with a global diagnostics company, as previously announced. Also previously announced, the company received a cash grant from an Internal Revenue Code program created by the Affordable Care Act. The grant of $244,479 was the maximum awarded under the program.
At Accelr8's Annual Shareholders' Meeting held on December 14, management described significant progress toward commercializing the BACcel™ system. Management outlined steps now underway to fully integrate its automated fluidics and microscopy instrument for international market introduction.
Management also highlighted two areas in BACcel™ test development. Company scientists and outside research collaborators at Denver Health made significant strides in specimen preparation. The company has now analyzed almost 700 clinical specimens, and devised improved cleanup methods for pilot clinical studies with fresh clinical specimens. The company also added endotracheal aspirates (ETA) to its specimen capabilities for severe lung infections. ETAs are easy to access but are highly variable and may contain dense, complex interfering materials. This addition gives physicians more choices in specimen access to screen, diagnose, and monitor severe lung infections. Pneumonia remains the leading infectious cause of mortality in the ICU.
Development continues to advance with tests to identify multi-drug resistant organisms, referred to by news media as "superbugs." Test targets include an advanced form of resistance in "Staph" against the favored fallback drug, vancomycin, for treating multi-resistant MRSA strains. The mechanism is known as "hVISA" for heteroresistant vancomycin intermediate Staphylococcus aureus. hVISA strains test as susceptible by standard lab methods, but exhibit a high treatment failure rate. hVISA has no identified molecular markers and no reliable culturing test that hospital laboratories can perform. Company scientists believe that they now are on track with an accurate hVISA test that fits well within the BACcel™ system's 6-hour total test cycle.
According to David Howson, Accelr8's president, "We're entering a development phase that leads directly to product development for international launch. The first system will include critical tests for pathogen targets that represent the greatest threats to ICU patients who become infected. Our scientific team continues to achieve new levels of performance unmatched by any other diagnostic technology in addressing the dire global pandemic of relentlessly evolving antibiotic resistance," Howson concluded.
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