Interpace Biosciences (NASDAQ: IDXG) reported Q1 EPS of ($2.31), $1.09 worse than the analyst estimate of ($1.22). Revenue for the quarter came in at $9.2 million versus the consensus estimate of $8.93 million.

• Net Revenue for the first quarter of 2020 was $9.2 million, an increase of 53% from the prior year first quarter, which did not include Pharma services revenues.
• Gross Profit was 34% as compared to 56% in the first quarter of 2019; this decrease was due principally to the lower margins associated with Pharma services in 2020.
• Loss from Continuing Operations was $(6.2) million as compared to $(3.4) million for the prior year first quarter driven primarily by added costs of Pharma services.
• Adjusted EBITDA was $(4.1) million as compared to $(1.8) million for the prior year first quarter driven primarily by added costs of Pharma services.
• Quarter-end March 31, 2020 cash position was approximately $13.4 million.

“First quarter revenue was $9.2 million and near the top end of our previously announced revenue range. During the first quarter we continued to grow our Clinical and Pharma services businesses, however, our Clinical services business was impacted by the pandemic beginning in the second half of March. We also took immediate action to protect our employees from exposure to the coronavirus, reduced discretionary and non-essential costs and accelerated operations integration,” stated Jack Stover, CEO of Interpace Biosciences.

“While we were generally pleased with first quarter progress, we did experience the business impact from the coronavirus pandemic and while recovering, we do anticipate the impact will continue through the remainder of 2020 and perhaps beyond. Our focus for the rest of the year will be continuing to respond to changing conditions while positioning ourselves for growth and expansion, improving business processes and integrating our service offerings. We believe that one of the important positive global impacts of the coronavirus pandemic is an increased awareness of the importance of the role diagnostics plays in all of our lives. We are confident that we are well positioned to take advantage of this opportunity with our diversification, focus on improving diagnosis and customized assays solutions for patients, physicians and pharma companies as well.”

“Our financial performance for the quarter was impacted by lower than expected Clinical service volume in March, which we believe has resulted from the required reduction in non-essential testing procedures in connection with the COVID-19 pandemic. As of mid-June, our business is down approximately 30% compared to our highs in February and early March and continues to improve,” stated Fred Knechtel, CFO of Interpace Biosciences.

“In response to customer interest we are developing serology antibody ELISA testing for COVID-19 at our CLIA lab in Pittsburgh, PA. We have completed validation, acquired acceptable kits and reference samples and are preparing to launch,” stated Jack Stover.

“We anticipate second quarter revenue between $5.6 million and $6.0 million, however, we cannot provide guidance for the remainder of the year at this time,” added Stover.

For earnings history and earnings-related data on Interpace Biosciences (IDXG) click here.