NorDiag ASA (NorDiag), a Norway-based biotechnology company, has declared its 2008 fourth-quarter results. It has reported sales revenues of NOK4.77 million for the fourth quarter of 2008, compared to sales revenues of NOK2.85 million in the year-ago quarter. Gross profit related to operating revenues was 49% in the fourth quarter of 2008 compared to 99% in the year-ago quarter. Loss before taxes for fourth quarter of 2008 was NOK9 million compared with NOK12.1 million in the year-ago quarter.
Operating revenues and other revenues/governmental grants
NorDiag had operating revenues of NOK5.1 million and other revenues/grants of NOK0.3 million in Q4-2008, compared with NOK3.3 million and NOK0.8 million in Q4-2007. The company more than doubled the operating revenues from the previous quarter. The strong growth in operating revenues current quarter comes as a consequence of successful clinical trials for STI sample preparations. 5 new “Bullet” instruments were sold, and 1 placed in the quarter. For 2008, the total operating revenue was NOK14.2 million compared with NOK11.6 million in 2007. There was no operating revenue from cancer tests in 2008, this means that the operating revenues from instruments and kits in Infections diseases had a growth of 45% (pro forma). Due to the fact that development projects recognized in the balance sheet are supported by governmental grants; NOK0.8 million are accounted for as a reduction in the balance sheet instead of recognized as revenue in the profit & loss statement, in
The extraordinary high gross margin in Q4-07 was related to correction of previous quarters. For 2008, the gross profit was 57% compared to 73% in 2007. The decrease in gross margin in Q4-08 compared to previous quarters in 2008 as well as 2008 versus 2007 is an effect of change in product mix (more instrument sales in Q4-08 and 2008).
Operating expenses (excluding cost of goods sold)
Total operating expenses in Q4-2008 were NOK10.7 million compared to NOK12.1 million in Q4 last year and NOK13.2 million in previous quarter. As of December 1, 2008, all employees of Genpoint AS were transferred from defined benefit pension plans to defined contribution pension plans. This has led to no pension liabilities in the balance sheet as of December 31, 2008. A positive one-off effect of NOK2,9 million was recognized in the profit & loss statement; in connection with settlement of the pension plan in 2008. For the whole year, total operating expenses were NOK46.9 million, NOK10.9 million lower than in 2007. The reduced operating expenses was according to plan, and a consequence of the discontinuation of Genefec Il in Q3-2007. Further cost-cutting measures decided will have an effect of up to NOK7 million in 2009.
Operating profit (EBITDA) before restructuring costs
EBITDA in Q4-2008 was NOK– 7.9 million compared to NOK– 8.0 million in Q4-2007, and NOK– 10.4 million in Q3-2008. Depreciation was NOK– 3.8 million compared to NOK– 4.8 million same quarter last year, and NOK- 3.2 million in last quarter. On a yearly basis, EBITDA in 2008 was – 35.6 million, an improvement of NOK9.7 million from 2007.
Net financial items
Net financial income was NOK2.7 million in Q4-2008 compared with NOK0.7 million last year and NOK1.1 million previous quarter. The high level of financial income current quarter is attributable to currency gains of NorDiag’s internal loan
transactions. For 2008, the financial income was NOK4.8 million compared to NOK2.5 million in 2007.
Profit before taxes for Q4-2008 was NOK– 9.0 million compared with NOK– 12.1 million in Q4-2007. Profit before tax in the third quarter 2008 was NOK– 12.5 million. Profit before taxes for 2008 was NOK– 44.4 million, an improvement of NOK12.5 million from the previous year.