Should You Buy Sequenom Inc. (NASDAQ:SQNM) After Stellar Numbers
Life sciences company Sequenom, Inc. (NASDAQ:SQNM) has reported 26% sequential increase in its 2013 third quarter revenue at $44.0 million, compared to $34.9 million in revenues announced during the second quarter of 2013. In addition, the revenue jumped 92% year over year compared to revenues of $22.9 million for the same period in 2012.
Net loss for the quarter was $28.1 million, or $0.24 per share, versus net loss of $30.2 million, or $0.26 per share, for the same period in 2012. The adjusted net loss (excluding restructuring cost) for the third quarter was $22.1 million or $0.19 per share.
“We are proud to report record-breaking revenues for the third quarter, which primarily resulted from the continued adoption of the MaterniT21 PLUS test,” Sequenom Chairman and CEO Harry F. Hixson said.
Revenues from the company’s Sequenom Laboratories subsidiary which forms the diagnostics services operating segment were $33.3 million during the third quarter, up from last year’s $12.5 million. The diagnostic revenues accounted for 76% of overall revenues, which was again up on a sequential basis. Revenues in the Sequenom Biosciences business (formerly called genetic analysis) rose by 3% to $10.7 million. During the quarter, the company also signed additional payer contracts bringing the number of covered lives for Sequenom’s diagnostic services to about $90 million. Total tests accessioned were up by 87% y-o-y. However, Medicaid tests declined 21% sequentially.
In addition, the company reduced their annualized future operating expenses by approximately $13 million by slashing 75 jobs. Sequenom, Inc. (NASDAQ:SQNM)’s overall gross margin was 38%, compared to gross margin of 23% for the same quarter last year. As of September 30, 2013, the company had total cash, cash equivalents, and marketable securities of approximately $84.7 million.
On the other hand, Sequenom’s peer GenMark Diagnostics, Inc (NASDAQ:GNMK) is planning to release their third quarter financial earnings on November 12, 2013. And, GenMark’s performance is yet to be judged upon.