Total revenue was $221K, compared to $230K in Q1/10. Revenue from product sales in Q1/11 was $149K, which was a 28% increase compared to Q1/10. This growth was driven by both increased unit volumes and new product launches in the SC Proven media and reagents business. Revenue from licensing agreements and grants was $72K, which was a 37% decrease compared to Q1/10 due to the completion and termination of several projects funded by grants. Cost of product sales were $$54K with a gross profit of $167K. SG&A expenses of $2.076M were 20% lower compared to Q1/10, while R&D expenses of $5.525M were 10% higher than Q1/10 as STEM continued to prioritize its product development efforts. Other income was $1.762M, compared to $1.477M in Q1/10. This increase was primarily due to a decrease in the estimated fair value of warrant liability, which totaled $1.783M versus $1.516M in Q1/10. STEM eliminated 20 full-time positions in its US based workforce, primarily in the R&D and admin areas, while maintaining a critical translational science capability to support the advancement of its preclinical and clinical development programs. STEM estimates this action will generate annual expense reductions of approximately $2.3M, primarily from savings in salaries and benefits and reductions in laboratory supply costs. When combined with previous steps taken to reduce operating expenses and cash burn STEM is targeting an annualized cash burn “run rate” of approximately $18M going into FY12. STEM estimates it will record a one time charge for severance and related expenses of approximately $300K in Q2/11. Operating expenses were $7.676M, compared to $7.787M in Q1/10. STEM raised approximately $9.4M in net proceeds in a financing in 1/11. For the Q1/11, net cash used in operating activities was $7.418M, which was 5% lower than Q1/10. Loss from operations in Q1/11 was $7.509M, which was 1% lower than the $7.601M loss from operations in Q1/10. STEM reported a Q1/11net loss of $5,747,000, or $(0.04) per share, compared to a net loss of $6.124M, or $(0.05) per share, for Q1/10. Shares used to compute basic and diluted loss per share were 136.79M.
- Cash, cash equivalents and marketable securities at 3/3111 totaled $21.623M.