Cancer Genetics (NASDAQ:CGIX) changed 5.20% to recent value of $ 0.18. The stock transacted shares during most recent the day were 1942525 shares however it has an average volume of 1.61M shares. It spotted trading -85.85% off of the 52-week high price. On the other end, the stock has been noted 21.21% away from the low price over the last 52-weeks.
Cancer Genetics (NASDAQ:CGIX), a leader in enabling precision medicine for immuno-oncology and genomic medicine through diagnostics, molecular markers and data solutions, announced financial and operating results for the first quarter ended March 31, 2019.
RECENT OPERATIONAL HIGHLIGHTS
Raised total net proceeds of $5.4 million in January through two common stock offerings of 28.55 million common shares. In connection with the two capital raises, the Company issued warrants for 2 million shares.
Reduced overall combined quarterly cost of revenue and operating expenses by $2.9 million compared to the first quarter of 2018.
Revenue for the quarter totaled $6.8 million, a decrease of 10.8% compared to first quarter 2018.
BioPharma revenue increased during the quarter by 8.4% compared to the year ago period.
Strengthened management team with appointment of William Finger as Executive Vice President of Precision Medicine and Pharma Services.
Continued to work with Raymond James & Associates to complete a transaction to enhance shareholder value.
John A. Roberts, Chief Executive Officer of Cancer Genetics said, “We are pleased with an 8.4% increase in BioPharma revenue during the quarter which reflects the completion and delivery of key projects. We also booked approximately $6.4 million of new BioPharma projects with a book-to-bill ratio of 1.61, compared to $4.8 million of new signed projects and a book-to-bill ratio of 1.31 in Q1 2018 respectively. It also reflects our strategic decision to focus on this business as part of our larger transformation plan. Our efforts to decrease expenses was highly successful with a decrease of $2.9 million in combined cost of revenue and operating expenses over a year ago, which reflects our concerted efforts to reduce costs across all categories.”
“In addition, we continue to work diligently with Raymond James on a strategic transaction and we’ll keep you informed as developments occur.”
FIRST QUARTER 2019 FINANCIAL RESULTS
The Company reported total revenue of $6.8 million for the first quarter of 2019 compared to revenue of $7.7 million in first quarter of 2018, a decrease of 10.8% or $0.8 million.
BioPharma services revenue totaled $4.0 million in the first quarter, compared to $3.7 million during the first quarter 2018, an increase quarter over quarter of 8.4%. BioPharma projects are dependent on the timing, size and duration of our contracts with pharmaceutical and biotech companies and clinical research organizations, and can fluctuate in comparable periods. During the first quarter we completed and delivered two larger projects offset by the start-up of multiple smaller contracts. The BioPharma business had more than 200 clinical studies and trials it is supporting at the end of Q1 2019. The Company’s book-to-bill ratio for Q1 2019 was 1.61 on $6.4 million of new contracts signed in the period.
Clinical Services revenue decreased by approximately $1.0 million in the first quarter of 2019 compared to the same period in 2018, the result of a reduction in the clinical services sales team and hence, reduced test volume, as the Company shifted focus in its strategy.
The Company’s Discovery Services contributed $1.5 million in revenue for the first quarter of 2019 compared to $1.7 million in 2018 due to a decline in revenue from our India subsidiary which was sold in April 2018. This represents a decrease of approximately 8.8% or $0.15 million.
Gross profit margin was 32.2% or $2.2 million in Q1 2019, compared to 33.7% or $2.6 million in the same period of 2018, a decrease of 1.5 percentage points. The lower gross profit is attributable primarily to lower Clinical Services revenue in the current period and a slight increase in lab supplies and shipping costs of $0.2 million, partially offset by an overall reduction of approximately $0.6 million in fixed cost of revenue.
The Company reduced research and development expenses by 33.3% or $0.23 million, general and administrative expenses by 37.1%, or $2.0 million, and sales and marketing by 30% or $0.48 million from the first quarter of 2018. Costs reductions were consistent with the consolidation initiatives started in Q1 2018 and continuing into Q1 2019.
Total operating expenses for the first quarter of 2019 were approximately $5.1 million which decreased by $2.4 million from $7.5 million in the first quarter of 2018, an overall improvement of 32%.
Net loss was $4.6 million or $0.9 per share for the first quarter of 2019, compared to a net loss of $4.5 million or $0.16 per share in the first quarter of 2018.
Unrestricted cash and cash equivalents as of March 31, 2019 totaled $0.7, compared to $0.2 million as of December 31, 2018.
Cancer Genetics (NASDAQ:CGIX) has a gross margin of 31.80% as compared to operating margin of -80.30% and its profit margin remained -74.20% for the last 12 months. The company has earnings of $ -20.40M and made $27.50M revenue for the last 12 month. Its earnings per share (EPS) expected to touch remained -171.80% for this year while earning per share for the next 5-years is expected to reach at 40.00%.
The company has 56.19M of outstanding shares and 46.18M shares were floated in the market. According to the most recent quarter its current ratio was 0.3 that represents company’s ability to meet its current financial obligations. The price moved ahead of -14.84% from the mean of 20 days, -22.68% from 50 and performed -63.32% from 200 days average price. Company’s performance for the week was -16.56%, -21.04% for month and yearly performance remained -81.78%.”