Third Wave reports net loss of $18.9M for 2006

Third Wave reports net loss of $18.9M for 2006

Madison, Wis.Third Wave Technologies reported a smaller net loss of $18.9 million, or 45 cents per share in 2006, but the company experienced impressive growth in clinical molecular diagnostic revenue, according to a year-end financial report.
Third Wave, which develops molecular diagnostic products for use in clinical testing, said its $18.9 million net loss compares to a net loss of $22.3 million, or 54 cents per share, for 2005.
However, the company ended 2006 with cash, cash equivalents, and short-term investments of $44.2 million, compared to $38.7 million on Dec. 31, 2005. The 2006 year-end cash balance does not include the $10.75 million that Third Wave will receive as part of a recent patent lawsuit settlement with Stratagene Corp.
The company’s revenue picture is much brighter than it was in 2005. Third Wave reported clinical molecular diagnostic revenue of $20.9 million for 2006, an increase of 34 percent.
It reported $6.8 million in research revenue last year, noting that an anticipated decline in Japanese research revenue was partially offset by a 25 percent rise in Agbio revenue, a component of research revenue.
Total revenues for the year were $28 million, a jump of more than 17 percent from 2005.
In 2007, Third Wave expects total revenues in the $31 million to $33 million range, including molecular diagnostic revenue of between $26 million and $28 million and Agbio revenue of about $5 million.
The company reached several product-development goals, including the start of clinical trials for its HPV products and an application to the Food and Drug Administration for approval of a cystic fibrosis molecular test.
President and chief executive Kevin Conroy said the expense of HPV clinical trials and other litigation will cause operating expenses to increase in 2007.
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