CombiMatrix Corp (NASDAQ:CBMX)
CombiMatrix Corp (NASDAQ:CBMX) continues to trade higher in the market as investor sentiments on the stock have been bolstered by a 27% year-over-year revenue increase. The health molecular diagnostics company attributed the increase to exponential growth in its reproductive health segment.
CombiMatrix Stellar Q1 Results
Revenues of $3.8 million in the quarter allowed the company to post a net loss of $518,000 – down from a $1 million loss the year before. Given the growth, chief executive officer, Mark McDonough, expects the company to achieve desired cash positive flows as the year progresses.
The increase in revenues was mostly driven by higher test volumes in the quarter as well as improved reimbursement which led to higher average revenue per test. Expenses in the quarter were down to $4.3 million from $4.4 million – helped by lower sales and marketing expenses.
Research and development expenses in the quarter totaled $85,000 down from $143,000 in the first quarter of 2016. CombiMatrix Corp (NASDAQ:CBMX) cash and cash equivalent totaled $3.2 million in the quarter at the back of a burn rate of $495,000.
“Over the past several years we have consistently delivered on our strategic objectives. Our many accomplishments include upgrading the talent within our sales organization, introducing new products, providing clinical validation for our testing that supports physician adoption and payer reimbursement, and increasing covered lives under payer contracts,” said Mr. McDonough.
The CEO expects improvements in billing as well as collection processes to lead to record cash collection levels as the year progresses. Success on this front should lead to sustained profitability in the long run.
While the company was posting stellar financial results for the first quarter, a class action lawsuit was brewing in the background. Law firm Purcell Julie & Lefkowitz LLP has confirmed it is investigating CombiMatrix Corp (NASDAQ:CBMX) management over a potential breach of fiduciary duty. The law firm is currently accepting applications from shareholders wishing to be represented and obtain additional information with regard to the matter.
CombiMatrix Corp (NASDAQ:CBMX) impressive run for the year continued last week, the stock having rallied by 11.34% in Friday trading session to close at highs of $5.40 a share. The stock is currently closing in on its 52-week high of $6.00 a share having gained more than 100% in market value over the past 12 months.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.