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CombiMatrix Corporation Reports First Quarter 2016 Financial and Operating Results

Revenues Increase 28% to $3.0 Million on Record Reproductive Health
Genetic Screening Test Volume and Higher Average Revenue per Test

Conference Call Begins Today at 4:30 p.m. Eastern Time

IRVINE, Calif., May 04, 2016 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (CBMX), a molecular diagnostics company specializing in DNA-based testing services for pre-implantation genetic diagnostics and screening, miscarriage analysis, prenatal and pediatric diagnostics, today reported financial results for the three months ended March 31, 2016.

“We are reporting another exceptional quarter of financial progress, with 28% revenue growth, expanded gross margin, increased cash collections and well managed operating expenses,” said Mark McDonough, CombiMatrix President and CEO. “Our growth was driven by a 39% increase in reproductive health revenue on an 18% increase in test volume, reflecting higher average revenue per test. We are particularly pleased with our performance in miscarriage analysis testing, with revenues up 43% on 13% test volume growth. We also benefited from better productivity from our newer sales representatives, which contributed to an 18% increase in our customer base.

“We anticipate that various industry dynamics will favorably impact our business,” he added. “In March, the two leading associations in women’s healthcare, the American College of Obstetricians and Gynecologists (ACOG) and the Society for Maternal-Fetal Medicine (SMFM), issued revised practice bulletins recommending that all women regardless of age or other risk factors are offered prenatal genetic testing. These bulletins reiterated the need to perform confirmatory testing when screening tests reveal positive results for fetal abnormalities. Additionally, a number of health plans, including Cigna and several in the Blue Cross Blue Shield network, have recently revised their medical policies to cover chromosomal microarray testing for recurrent pregnancy loss. We believe that more health plans will follow suit based on the growing clinical support for this valuable patient information.

“We are firmly focused on growth and a path toward profitability, supported by tight execution of our business strategy,” said Mr. McDonough. “This year we plan to expand our IVF testing portfolio and expect to increase physician adoption through more clinical validation, improved marketing developed from the insights from our newly appointed Scientific Advisory Board, and greater productivity from our sales organization. We also are seeking opportunities to build upon our leadership position in the growing reproductive health diagnostics market and enhance shareholder value through partnerships and other business development alternatives. With the completion of an $8 million financing in late March, we are well positioned to execute on our plans.”

First Quarter Financial and Operational Highlights (all comparisons are with the first quarter of 2015)

  • Total revenues of $3.0 million, up 28%
  • Reproductive health revenues of $2.2 million, up 39%
  • Reproductive health test volume of 1,426, up 18%
  • Number of billable customers reaches 264, up 18%
  • Cash collections of $2.5 million, up 15%
  • Closed $8.0 million underwritten public offering in March of 2016
  • Launched CombiPGD™ - Preimplantation Genetic Diagnosis for Single Gene Disorders and Chromosomal Translocations
  • Formed Scientific Advisory Board
Revenues (in 000's)
Q1 '16Q1 '15# Δ% ΔQ1 '16Q1 '15$ Δ% Δ
Miscarriage analysis99588211313%1,6221,13249043%
Subtotal - reproductive health1,4261,20622018%2,1651,55461139%
Subtotal - all arrays1,8781,67320512%2,6652,05161430%
Non-array tests7706729815%2652362912%
Total - all tests2,6482,34530313%2,9302,28764328%
Total revenues$2,972$2,329$64328%

Financial Results

Total revenues for the first quarter of 2016 increased 28% to $3.0...