Nanogen, Inc. (Nanogen), a in vitro diagnostics company, has reported preliminary financial results for the year ended December 31, 2008. The company reported total revenues of $46.9 million for the full year of 2008, compared with total revenues $38.1 million in the previous year-end. It has reported net loss of $38.1 million, or $0.49 per share, for the full year of 2008, compared with the net loss of $33.9 million, or 0.47 per share, in the previous year-end.
Fourth quarter revenues declined from third quarter levels due to delayed recognition of contract revenue, exchange rate impacts and seasonality. Total revenues for the fourth quarter of 2008 were $9.5 million, slightly lower than the $9.8 million recorded in the same period in 2007 and 31% percent lower than the $13.8 million recorded in the third quarter of 2008. Product revenues for the fourth quarter of 2008 decreased by 5% to $5.6 million from $5.9 million in the same period in 2007, and decreased by 28% from the $7.8 million recorded in the third quarter of 2008.
Total costs and expenses, including cost of product sales, declined from the level in both the prior year and prior third quarter. In the fourth quarter of 2008 total costs and expenses were $15.0 million compared to $20.8 million in the fourth quarter of 2007 and $18.0 million in the third quarter of 2008. For the full year of 2008, the total of costs and expenses declined to $70.9 million versus $91.9 million in 2007.
For the quarter ended December 31, 2008, Nanogen reported a net loss of $2.0 million, or $0.02 per share, compared to a net loss of $6.5 million or $0.09 per share for the same quarter in 2007, and a net loss of $6.0 million or $0.08 per share in the third quarter of 2008.
Nanogen’s consolidated cash, cash equivalents and short-term investments balance at the end of the fourth quarter of 2008 was approximately $3.1 million.
“Our strategy and related restructuring has clearly improved the performance of our business,” said Howard Birndorf, chairman and chief executive officer. “However, our available cash resources are not adequate to support our 2009 plan and therefore, we are aggressively continuing our efforts with Cowen & Co. to identify and evaluate strategic opportunities for our business. This effort is one of our highest priorities.”