After our article on Arrayit (OTCPK:ARYC) we did a quick interview of Dr Mark Schena today and here's what he said about their Q2 performance:
Arrayit management is pleased to announce a strong operational quarter in Q2-2013. Revenue increased 19% YOY to $1.55M for the six months ended June 30, 2013 from $1.3M for the six months ended June 30, 2012. Gross margin increased 21% YOY to $0.71M for the six months ended June 30, 2013 from $0.59M for the six months ended June 30, 2012. Net income rose by $1.48M YOY to $0.16M for the six months ended June 30, 2013 compared to a $1.31M loss for the six months ended June 30, 2012. Net income attributable to common shareholders rose by $1.06M YOY to $0.16M for the six months ended June 30, 2013 compared to a $0.89M loss for the six months ended June 30, 2012. SG&A was reduced by $1.25M YOY to $0.49M for the six months ended June 30, 2013 compared to $1.74M for the six months ended June 30, 2012. Gross accounts receivable grew 8.3% YOY to $0.64M for the six months ended June 30, 2013 from $0.59M for the six months ended June 30, 2012.
During the three months ended June 30, 2013, the company raised $0.175M from an accredited investor, which will positively impact revenue and earnings in Q3-2013.
In our own assessment of the results, we noted a loss in sales mainly due to a delay in manufacturing. However, this was an operational issue which did not impact orders. Backload orders have improved to $0.29 million and ARYC posted lower gross margin of 37%, primarily due to decrease in sales of high margin microarray instruments and consumables.
Also, Arrayit has lower net loss from operations of $0.02 million compared to last period ($0.62 million), due to decline in consulting fees and legal expenses. The company has used cash of $0.92 million for its operations.
Currently, company has enough funds to carry out its operations for next 12 months, but needs additional funds. I expect that ARYC's focus on high margin microarray products will bring some positive outlook in the next year.
Disclosure: I am long OTCPK:ARYC.
