Signal Genetics Inc (NASDAQ:SGNL) a molecular genetics diagnostic firm in it commercial stage and focused on offering innovative diagnostic services to help physicians take better-informed decisions updated on recent achievements and financial performance for 3Q2015.
Tests billed for hospitals in the United States and other direct billed clients outside of UAMS surged in3Q2015 to 271, up 82%, over 3Q2014 highlighting the continued execution of company’s long-term strategy. Signal Genetics expects its expanded marketing and sales measures and corresponding growth in new hospital clients’ number to continue to support this upward trend.
Total tests billed to Signal all clients for 3Q2015 dropped 62% to 447 over the third quarter of 2014. This decline can be attributed to the drop in the count of tests billed for ‘UAMS’ research & clinical patients. The company projects continued declining sales from the UAMS research plans due to a decline in research funds at UAMS.
Signal Genetics reported that net revenue in 3Q2015 declined 61% to $501,000 against $1.3 million during 3Q2014. The decline can be primarily attributed to the aforementioned drop in tests sourced from UAMS and a decline in reimbursement estimates utilized to calculatebillings revenue for non-contracted insurance payors. Signal reported that cost of revenue for 3Q2015 was $577,000 against $900,000 recorded in the same quarter a year earlier. This decline can be attributed to a drop in both laboratory supply and assigned laboratory personnel costs, an indication of lower overall test volumes.
R&D expenses totaled nearly $253,000 for 3Q2015 compared to nearly $105,000 recorded in the same period a year ago. This jump in research and development expenses can be attributed to increased costs related with supplies, labor and materials for the company’s sponsored and internal research programs. Signal Genetics Inc (NASDAQ:SGNL) reported selling and marketing expenses of $796,000 in 3Q2015, up from $169,000 during 3Q2014.