IRVINE, Calif., Oct. 7, 2014 (GLOBE NEWSWIRE) -- CombiMatrix Corporation (Nasdaq:CBMX), a molecular diagnostics company specializing in DNA-based testing services for pre- and postnatal developmental disorders, today announced that it expects to report record volumes of prenatal testing in the third quarter and nine months ended September 30, 2014. Preliminary growth rates of 71 percent and 64 percent are estimated for billable prenatal tests in the third quarter and year-to-date periods, respectively, compared to the comparable periods in 2013. The Company believes the growth rate in prenatal testing, which includes both prenatal and miscarriage testing, is the result of the Company's strategic shift to focus on its prenatal molecular diagnostics testing markets, where the Company believes that chromosomal microarray analysis is becoming the standard of care.
Total microarray testing volumes for the third quarter of 2014 is expected to increase 24 percent to 1,420 billable tests performed, compared to 1,145 tests performed in the third quarter of 2013. The Company also expects to report record cash receipts for the third quarter and nine months ended September 30, 2014, which are expected to be over $2.0 million and $5.4 million, respectively, compared to $1.5 million and $4.4 million, respectively, in the comparable 2013 periods. Record cash reimbursement can be attributable to increased microarray revenues coupled with increased management focus on reimbursement and collections during the past year. The Company expects to announce complete results for the quarter and conduct a conference call following the completion of its independent auditors' review.
As reported in a public filing on September 12, 2014, the evidence portion of the lawsuit filed by Mr. Strathmann against CombiMatrix and its former parent, Acacia Research Corporation, ended on August 22, 2014. As a result, the Company expects that legal fees related to the case will be higher in the third quarter compared to the second quarter of 2014, but are expected to decline in the fourth quarter of 2014 as compared to the previous two quarters.
"Despite the time required by management to address the Strathmann lawsuit, we have remained focused and continue to execute on our plan to drive revenue through higher volumes and better reimbursement," said Mark McDonough, President and Chief Executive Officer of CombiMatrix. "We expect that legal costs will be lower in the fourth quarter compared to recent quarters as the evidence portion of the Strathmann trial has been completed. Our commercial team has remained focused on and committed to serving our customers, expanding access to new accounts and sales territories across the United States as well as developing new service offerings. Also, our collections and reimbursement team continues to deliver record quarters in cash collections. We look forward to discussing the complete quarterly results in more detail on our upcoming third quarter conference call, which we expect will be held in early November."
About CombiMatrix Corporation
CombiMatrix Corporation provides valuable molecular diagnostic solutions and comprehensive clinical support to foster the highest quality in patient care. CombiMatrix specializes in miscarriage analysis, prenatal testing and pediatric genetics, offering DNA‑based testing for the detection of genetic abnormalities beyond what can be identified through traditional methodologies. CombiMatrix performs genetic testing utilizing a variety of advanced cytogenomic techniques, including chromosomal microarray, standardized and customized fluorescence in situ hybridization ("FISH") and high-resolution karyotyping. CombiMatrix is dedicated to providing high-level clinical support for healthcare professionals in order to help them incorporate the results of complex genetic testing into patient-centered medical decision making. Additional information about CombiMatrix is available at www.combimatrix.com or by calling 1-800-710-0624.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations, speak only as of the date hereof and are subject to change. All statements, other than statements of historical fact included in this press release, are forward-looking statements. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "goal," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding projected results of operations and management's future business, operational and strategic plans, recruiting efforts and test menu expansion. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to: the outcome of the Strathmann lawsuit; the failure of chromosomal microarray analysis to become the standard of care; our ability to successfully expand the base of our customers and strategic partners, add to the menu of our diagnostic tests, develop and introduce new tests and related reports, expand and improve our current suite of services, optimize the reimbursements received for our microarray testing services, and increase operating margins by improving overall productivity and expanding sales volumes; our ability to successfully accelerate sales, steadily increase the size of our customer rosters in both prenatal and developmental genetic testing markets; our ability to attract and retain a qualified sales force in wider geographies; our ability to ramp production from our sales force and our strategic partners; rapid technological change in our markets; changes in demand for our future services; legislative, regulatory and competitive developments; litigation; general economic conditions; and various other factors. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, Quarterly Reports of Form 10-Q, and in other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law.
CONTACT: Company Contact: Mark McDonough President & CEO, CombiMatrix Corporation (949) 753-0624 Investor Contact: Robert Flamm, Ph.D. Russo Partners, LLC (212) 845-4226 firstname.lastname@example.org Media Contact: David Schull or Lena Evans Russo Partners LLC (212) 845-4271 email@example.com firstname.lastname@example.org