Gross profit from continuing operations was $2.8 million or 56% during the first quarter of 2009 compared to $3.6 million or 58% during the comparable period of 2008. Operating expenses from continuing operations were $3.8 million during the first quarter of 2009 compared to $3.5 million during the same period of 2008. Excluding the impact of foreign currency revaluation gains/losses, operating expenses were down by $0.1 million in the first quarter of 2009 compared to the same period of 2008. Cash and cash equivalents totaled $4.8 million at March 31, 2009.
Comment and Outlook
Craig Tuttle, the company’s president and chief executive officer, noted “Unfortunately, like many companies today, we are also experiencing an impact from the overall economic slowdown. This resulted in a decline in first quarter revenue to $5.0 million compared to our first quarter revenues in 2008 of $6.3 million and a net loss of $1.0 million in the quarter. This decline was primarily the result of a slowdown in instrument orders compared to what we experienced throughout 2008. Our Molecular Diagnostics Laboratory grew from $.9 million to $1.0 million in revenue in the first quarter of 2009 compared to the fourth quarter of 2008. The Molecular Diagnostics Laboratory grew by $447,000 over the first quarter of 2008. We have added an additional 24 new ordering institutions during the first quarter of 2009. This business was also impacted by the current economy which slowed our quarterly growth rates. We believe this is the result of potential patients delaying diagnostic testing during the current economic tumult since we are performing testing for 64 more customers than in the first quarter of 2008. In addition, we do have some customers whose volumes are lower compared to the same period of the prior year. On a positive note, we are beginning to see signs of improved instrument sales for the second quarter.”