SAN FRANCISCO, Nov. 13, 2014 (GLOBE NEWSWIRE) -- CollabRx, Inc. (the "Company") (Nasdaq:CLRX) announces financial results and business highlights for the second quarter of fiscal year 2015, which ended September 30, 2014.
Second Quarter Business Highlights
The Company continued to make progress in its second fiscal quarter, by building a strong base for future revenues and establishing a leadership position among oncologists and pathologists in the rapidly emerging area of clinical genetic testing in cancer, including:
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Completing an agreement with OncoSolutions Cancer Center, a private oncology company based in Singapore, to provide its Genetic Variant Annotation (GVA) Service™ to the Center's oncologists so they can quickly and efficiently glean insight from a patient's tumor genetic profile to determine a treatment plan;
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Launching its expanded Genetic Variant Annotation™ (GVA™) Service that now supports the interpretation of copy number variation (CNV) data in cancer, resulting in a single, user-friendly report that contains clinically relevant and dynamically updated information that has been used toward cancer treatment planning and support of clinical research;
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Congratulating Dr. George Lundberg, the Company's Chief Medical Officer, Editor-in-Chief and Chair of the CollabRx Editorial Advisory Board upon his winning the 2014 Ward Burdick Award for Distinguished Service to Pathology from the Board of Directors of the American Society for Clinical Pathology (ASCP). Dr. Lundberg was presented with his award during the ASCP Annual Meeting in Tampa, Florida on October 9;
- Announcing, after the close of the second quarter, a partnership with Cartagenia, Inc. to provide and promote to the clinical laboratory market an end-to-end software solution to support clinicians and pathologists with clinical genetic testing and reporting in oncology, including next-generation sequencing (NGS)-based tests. With more than120 laboratory customers in Europe and the U.S., Cartagenia is a leader in providing genetics labs and clinicians with software-based workflow support for variant assessment, lab reporting, and integration of clinical knowledge-bases.
Second Quarter Fiscal 2015 Financial Statement Highlights
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Total revenue for the quarter was $176,000, up strongly from the prior quarter's (Q1 FY2015) revenue of $64,000, with the entire amount representing the Company's commercialization of its content services and online media products. Revenue for the second quarter of fiscal 2014 was $251,000.
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Gross profit margins remained high during the second quarter at 89.8% compared to 72.0% in Q1 FY2015 and 92.8% in Q2 FY2014. Gross profit for the second quarter of fiscal 2015 was $158,000 compared with $233,000 in the second fiscal quarter of the prior year.
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The Company's net loss for the second quarter of fiscal 2015 was $(1,016,000) or $(0.35) per share, compared with a net loss of $(1,248,000) or $(0.61) in the first quarter of fiscal 2015 and $(563,000) or $(0.29) per share for the second quarter of fiscal 2014.
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Operating expenses totaled $1,197,000 for the second quarter. Of that amount, $222,000 was non-cash charges for depreciation, amortization and stock compensation expense. This represented an overall decrease in operating expenses from the immediately preceding quarter (first quarter of fiscal 2015), which were $1,316,000, including $155,000 of non-cash charges. In the second quarter of fiscal year 2014, total operating expenses were $1,105,000, and included $152,000 of non-cash charges. The year-over-year quarterly increase in operating expenses was due primarily to year-end accounting fees and taxes.
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The operating loss for the second quarter of fiscal 2015 was $(1,016,000), compared to $(1,270,000) in the first quarter of fiscal 2015 and $(836,000) in the prior year.
- CollabRx ended the second quarter with approximately $1,134,000 in cash and cash equivalents.
Business Outlook
"We are very pleased about the progress that we have made, both in expanding our capabilities and strengthening our base for future revenues," said Thomas Mika, President and CEO of CollabRx. "Although the adoption of broad-based genomic profiling for therapy selection faces many challenges, including physician practice, reimbursement and potential regulation, we are confident that as those challenges are overcome by leading industry participants, our growth will accelerate. We have created a differentiated resource and industry-leading genomic interpretation and reporting capability in an exciting, newly emergent market that our customers and partners value highly. We are expanding distribution for our products in foreign markets where the challenges are fewer, with strong, well-known partners."
In the second quarter of fiscal year 2015 and throughout the current fiscal year, CollabRx built and expects to build revenue primarily through the sale of its content in connection with its Genetic Variant Annotation Service (GVA). The Company expects its revenue to increase as our customers succeed in launching and growing their test sales into a rapidly growing market. In addition, the Company expects to report revenue later this year in connection with its revenue-sharing agreement for the CancerRx mobile app, developed and marketed in collaboration with Everyday Health's MedPage Today.
CollabRx expects quarterly cash operating expenses to continue to be in the range of $1.0 million. The Company also expects its operating expenses in near-term quarters to be partially offset in the remainder of fiscal year 2015 by revenue both from agreements with its current partners and customers, as well as from new agreements.
About CollabRx
CollabRx, Inc. (Nasdaq:CLRX) is a clinical decision support company that uses cloud-based expert systems to inform healthcare decision-making by aggregating and contextualizing the world's knowledge on molecular medicine with specific insights from the nation's top clinical experts. We have initially focused on the area of greatest need: helping physicians develop treatment plans for patients with advanced cancers who have effectively exhausted the standard of care. More information may be obtained at http://www.collabrx.com.
CollabRx Safe Harbor Statement
This press release includes forward-looking statements about CollabRx's anticipated results that involve risks and uncertainties. Some of the information contained in this press release, including, but not limited to, statements as to industry trends and CollabRx's plans, objectives, expectations and strategy for its business, contains forward-looking statements that are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. Important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in filings made by CollabRx with the Securities and Exchange Commission. CollabRx undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.
| COLLABRX, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (In thousands, except share data) | ||
| Sept. 30, | March 31, | |
| 2014 | 2014 * | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $1,134 | $1,430 |
| Accounts receivable | 73 | 148 |
| Prepaid expenses and other current assets | 95 | 183 |
| Deferred financing costs | 30 | 162 |
| Investment in convertible promissory note | 395 | 378 |
| Total current assets | 1,727 | 2,301 |
| Property and equipment, net | 127 | 130 |
| Intangible assets, net | 1,177 | 1,281 |
| Goodwill | 603 | 603 |
| Total assets | $3,634 | $4,315 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $156 | $136 |
| Accrued compensation | 112 | 119 |
| Promissory note payable, current | 208 | -- |
| Deferred revenue | 93 | 108 |
| Liabilities of discontinued operations | -- | 5 |
| Total current liabilities | 569 | 368 |
| Deferred tax liability | 459 | 500 |
| Promissory note payable | 309 | 509 |
| Other long-term liabilities | 13 | 13 |
| Total liabilities | 1,350 | 1,390 |
| Preferred stock, $0.01 par value; 5,000,000 shares authorized; | ||
| none issued and outstanding | -- | -- |
| Common stock, $0.01 par value; 50,000,000 shares authorized; | ||
| 2,929,954 and 2,005,187 shares issued and outstanding | ||
| at September 30, 2014 and March 31, 2014 respectively | 29 | 20 |
| Additional paid-in capital | 132,608 | 130,994 |
| Accumulated deficit | (130,353) | (128,089) |
| Total stockholders' equity | 2,284 | 2,925 |
| Total liabilities and stockholders' equity | $3,634 | $4,315 |
| *Derived from the Company's audited consolidated balance sheet as of March 31, 2014. | ||
| COLLABRX, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except share data) | ||||
| Three Months Ended | Six Months Ended | |||
| September 30, | September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue | $176 | $251 | $240 | $521 |
| Cost of revenue | 18 | 18 | 36 | 36 |
| Gross profit | 158 | 233 | 204 | 485 |
| Operating expenses: | ||||
| Engineering | 539 | 516 | 1,081 | 748 |
| Research and development | 32 | 31 | 82 | 205 |
| Sales and marketing | 73 | 73 | 153 | 140 |
| General and administrative | 553 | 485 | 1,197 | 974 |
| Total operating expenses | 1,197 | 1,105 | 2,513 | 2,067 |
| Operating loss | (1,039) | (872) | (2,309) | (1,582) |
| Other income, net | 2 | 16 | 9 | 26 |
| Loss before income tax benefit | (1,037) | (856) | (2,300) | (1,556) |
| Income tax benefit, net | (21) | (20) | (36) | (41) |
| Loss from continuing operations | (1,016) | (836) | (2,264) | (1,515) |
| Gain on sale of discontinued operations, net of taxes | -- | 267 | -- | 267 |
| Income (loss) from discontinued operations, net of taxes | -- | 6 | -- | (112) |
| Net income from discontinued operations, net of taxes | -- | 273 | -- | 155 |
| Net loss | $ (1,016) | $ (563) | $ (2,264) | $ (1,360) |
| Net loss per share from continuing operations: | ||||
| Basic and diluted | $ (0.35) | $ (0.43) | $ (1.01) | $ (0.78) |
| Net income per share from discontinued operations: | ||||
| Basic and diluted | $0.00 | $0.14 | $0.00 | $0.08 |
| Net loss per share: | ||||
| Basic and diluted | $ (0.35) | $ (0.29) | $ (1.01) | $ (0.70) |
| Weighted-average shares used in per share computation: | ||||
| Basic and diluted | 2,929 | 1,953 | 2,245 | 1,953 |