Cancer Genetics has reported its Q3 strategic, financial and operating results for the third quarter ended September 30, 2019.
Cancer Genetics (NASDAQ:CGIX) has announced its Q3 financial results for the quarter ending September 30, 2019.
As quoted in the press release:
RECENT STRATEGIC AND OPERATIONAL HIGHLIGHTS
- Delivered on cost reduction initiatives and consolidated operational focus on drug discovery and preclinical services
- Increased Discovery Services revenue in Q3 2019 to $2.1 million, an increase of $0.5 million, or 35% growth in Q3 2019 sequentially over Q2 2019
- Gross margin on Discovery Services was 53.2%, consistent with Q2 2019 results
- Completed divestiture of two operating units for cash, notes and future payment streams; received a combined approximately $9.1 million in cash from such transactions in Q3 and October 2019
- Retained HC Wainwright & Co. to explore strategic alternatives for future merger, sale of other assets, or other strategic transactions
We continue to make progress to improve the Company’s financial profile with the reduction of over $15 million of total liabilities in the nine month period ended September 30, 2019. We received over $9.1 million in cash, including approximately $0.8 million from siParadigm in Q3 and $8.3 million from Interpace Diagnostics Group ($2.3 million in Q3 and $6.0 million in October 2019), the recently announced M&A transactions. We also repaid approximately $9 million in senior secured debt and paid down approximately $2.6 on two unsecured notes payable in October, further reducing our debt and we expect to further reduce our debt throughout Q4 2019, giving the Company time to explore a variety of new strategic alternatives,” said John A. Roberts, Chief Executive Officer of Cancer Genetics.
Additionally, Mr. Roberts stated “our Discovery Services business is self-sustaining, thereby eliminating any further operating cash burn, and we are now focused on collecting cash that is due to the Company, substantially reducing our accounts payable with our unsecured creditors, focusing on the operational elements of our Discovery Services business, and continuing to explore strategic alternatives, which could include the sale of other assets, a merger or other strategic transactions. With these asset sales now completed, we believe the Company is in a good position to explore further strategic initiatives as well as to grow the remaining Discovery Services business”.