CombiMatrix Corp. (NASDAQ: CBMX) may not have hit a profit in 2Q2016, but the management is encouraged by the performance attained in the quarter. CEO Mark McDonough said that the results attained in 2Q have brought them closer to the goals the management had set for itself.
Those goals include growing revenue, expanding margins, narrowing operating loss and improving cash collection.
How did CBMX fare in 2Q?
CombiMatrix Corp. (NASDAQ: CBMX) generated total revenue of $3.1 million, which improved 22% over the same period last year. Revenue increases were registered across the company’s test portfolios. Though test volumes dipped in some cases, the management credited the revenue improvement to higher costs per test.
CombiMatrix’s revenue from reproductive health tests increased 32% to $2.2 million. In that category, the company said revenue from its preimplantation genetic screening test increased a whopping 500%. In that same category miscarriage analysis tests revenue increased 22% and prenatal tests revenue rose 11%.
However, things were not all rosy for the company in every test category as pediatric test revenue slid 11%. That pulled array-based test revenues down 20%, but non-array-based test revenues increased 30%.
What about the bottom-line?
CombiMatrix Corp. (NASDAQ: CBMX) said its EPS loss for 2Q2016 declined to $0.89 from EPS loss of $1.91 in the year-ago quarter. Thus, the management hit the target of reducing losses through revenue growth.
But CombiMatrix continues to funnel more resources to its R&D efforts, with R&D costs rising 140% in 2Q2016 compared to the same period last year. However, SG&A costs remained unchanged at $2.7 million.
What about CombiMatrix Corp. (NASDAQ: CBMX) liquidity?
CombiMatrix Corp. (NASDAQ: CBMX) finished the latest quarter with cash and equivalents totaling $5.2 million. That was down slightly from cash and equivalents of $5.6 million at the end of the previous quarter.
Attaining breakeven in 4Q
Though CombiMatrix fell short of saying what kind of revenue or EPS it expects in the current quarter, it did say that becoming breakeven in 4Q would require that it generates revenue of $4.9 to $5.3 million.