OMAHA, Neb.--(BUSINESS WIRE)--

Transgenomic, Inc. (OTCBB: TBIO.OB - News) today reported financial results for the three months ended, March 31, 2012, and provided a business update.

We made progress in the first quarter validating and advancing several of our new high-value products, including the NuclearMitome Test, ICE COLD-PCR in circulating tumor cells and PGxPredict:CLOPIDOGREL response panel, said Craig Tuttle, President and Chief Executive Officer. Our investment in these groundbreaking new products and technologies will fuel growth over the long term and keep Transgenomic at the forefront of the pharmacogenomics and molecular diagnostics industry. Most notably, we continue to build momentum in building awareness around our proprietary, two gene clopidogrel response panel, a test which represents a potential multi-billion dollar market opportunity.

Mr. Tuttle added, Supporting our strategic initiatives was a $22 million private placement financing executed in the first quarter. Together with our focus on the successful development of new products and technologies, and the expansion of our commercial products into new markets, we believe Transgenomic has the strategy, balance sheet strength and operational infrastructure to achieve significant value creation.

Recent Corporate and Business Events

First Quarter Financial Results

Net sales for the first quarter of 2012 were $7.2 million compared with $7.5 million for the same period in 2011. Gross profit was $3.1 million or 43 percent of net sales, compared with gross profit of $4.2 million or 56 percent of net sales for the same period in 2011.

The decrease in revenue is primarily due to a software failure that temporarily resulted in reduced sample processing capacity at the Companys New Haven, Connecticut laboratory testing facility. The Company believes that full sample processing capacity has been restored and expects to complete the sample backlog caused by the LIMS failure by June 2012 in addition to processing the entire volume of samples received during the second quarter. This revenue decrease was partially offset by an increase in instrument deliveries during the quarter.

Operating expenses were $5.5 million during the first quarter of 2012, compared with $4.9 million in the prior year. The largest increase is the recognition of stock options granted in 2011.

The net loss for the first quarter of 2012 was $2.7 million or $0.05 per share compared with a net loss of $2.8 million or $0.06 per share for the first quarter of 2011.

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Transgenomic Reports First Quarter 2012 Financial Results