CombiMatrix (CBMX) Sees Record Prenatal Testing Volumes in Q314

CombiMatrix (NASDAQ: CBMX) 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."

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