WaferGen Bio-systems, Inc. (NASDAQ:WGBS) Reports Excellent Financial Results For 3Q2015 Driven By 68% Growth In Product Revenues

957

WaferGen Bio-systems, Inc. (NASDAQ:WGBS) was a massive decliner during the trading session on Tuesday. The stock collapsed by close to 3% on the back of high volumes, which were 1.4 times the daily average volumes. The stock was unable to move above the resistance zone at $1.17 and witnessed huge selling pressure, which points towards bears being in total control at the moment. The stock currently trades below all daily moving averages. The indicator for relative strength has given a clear indication of the strong bearish momentum. Traders see the stock heading to levels of $0.74 in the near term.

WGBS

WaferGen Bio-systems, Inc. (NASDAQ:WGBS) reported financial results for 3Q2015. As per the reports, the overall financial performance of the company was driven by excellent revenue realization, especially product revenues that rose 68% during the quarter.

Financial Highlights

When it comes to total revenues, including license, product and royalty payments, WaferGen managed to earn around $2 million in total as compared to $1.3 million during the same period in 2014. The biggest driving force behind this growth was the product revenue that accounted for $760,000 during the quarter, 68% up on YOY.

Company’s flagship product SmartChip capital equipment witnessed a sharp hike in sales, which led to a whopping rise in product revenues. If taken into consideration the product to product growth, one can see that the sales of SmartChip capital equipment increased 121% on YOY basis. Along with this, the Real-Time PCR Chip panels also witnessed a whopping increment of 103% in the sales during the quarter. The license and royalty payments accounted for $125,000 during the quarter, unchanged from the previous year.

The gross margin for 3Q2015 was 58% whereas the gross profit was $1.2 million as compared to 70% gross margin and $0.9 million gross profit in 3Q2014. Operating expenses for the quarter were about $4.6 million compared to $4 million during the same period in the previous year. Over the past one year, sales and marketing expenses rose about $463,000 to $1.4 million for the quarter. The other financial results for the quarter comprised of R&D expenses of $2.4 million and general and administrative expenses of about $0.8 million.

WaferGen Bio-Systems ended the quarter with $3.5 million worth of net loss compared to $2.8 net loss during the same period in 2014.

The senior management team of the company is confident of achieving a positive state within next few quarters. It is likely to take many initiatives for the same objective, details of which will be announced at a later date.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.