Boston, MA 05/02/2014 (wallstreetpr) – Molecular diagnostic testing and genetics company, Sequenom Inc. (NASDAQ:SQNM), is surging in early morning trading after beating estimates with its first quarter results, having posted record revenues. Sequential growth continues to be experienced in better than expected volumes of revenue, gross margin and expenses. Steady growth continue to ensure the company reaches desirable profit volumes at the back of impressive efforts from the sales team and the management team.
Operational updates
Sequenom Inc. (NASDAQ:SQNM) laboratories registered a record number of patient samples for the testing of HerediT cystic Fibrosis; a carrier screening laboratory developed test. The test essentially analyzes up to 136 mutations and five variants that are known to cause CF, integrating disease. The competitive advantage of HerediT CF is that it can analyze up to six times the number of clinically relevant mutations
Sequenom also increased its volumes of Medicaid tests to 16% in the quarter from 14% that was reported last year Q4. The U.S Patent and Trademark Office PTO concluded in favor of Sequenom on a case involving three patent interference. The agency cancelled all four of ‘018 patent claims in the interference case.
Q1 Financial highlights
Record revenue for the quarter continues to be the main reason why investors in Wall Street are bullish on Sequenom Inc. (NASDAQ:SQNM)’s stock in terms of ratings. The company’s revenue for the quarter was $46.3 million representing an increase of 20% compared to revenues of $38.5 million that had been reported last year.
Test volume for the quarter clocked highs of 50,000 tests with 39,800 on MaterniT21 PLUS tests marking impressive growth as the company continues to build more profitable test volume. Operating segment, on the other hand, grew by 27% to a high of $37.1 million up from $29.1 million reported in the first quarter of 2013.
The major point of concern is the Bioscience operating segment that recorded a decline of 2% offset by a 9% growth of revenue on consumables. Gross margin for the quarter was up to 44% compared to 36% reported in the first quarter of 2013. Impressive margins for the quarter can be attributed to a reduction in operating expenses that came in at $33.6 million down from 41 million a year early.
