SQI Diagnostics Reports First Quarter Financial Results

TORONTO, Feb. 25 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD), a medical systems automation company focused on evolving laboratory-based biomarker testing, today announced its financial and operational results for the first quarter ended December 31, 2009.

Highlights

    
      -  Attained U.S. Food and Drug Administration (FDA) clearance for the
         world's first fully-automated fluidics workstation and multiplexed
         assay system. SQI's automated SQiDworks(TM) Diagnostics Platform and
         its multiplexed IgXPLEX(TM) Rheumatoid Arthritis (RA) assay are now
         cleared for marketing in the United States;
      -  Accelerated the development, verification and validation of
         additional clinical panels of biomarkers to multiplex including the
         highest-demand autoimmune test panels for celiac disease,
         vasculitis, lupus and inflammatory bowel diseases (Crohn's disease,
         ulcerative colitis);
      -  Completed a private placement resulting in gross proceeds of
         $6,594,786, which strengthened the Company's balance sheet and
         diversified its institutional shareholder base;
      -  Was granted the patent, "Method to Measure Dynamic Internal
         Calibration True Dose Response Curves". Management believes this
         patent to be a significant achievement in its intellectual property
         portfolio and is critical to the protection of in-array calibration
         and normalization;
      -  During the quarter ending December 31, 2009 and in the first
         calendar quarter of 2010, the Company entered into an evaluation
         agreement and installed a SQiDworks platform at a major Canadian
         reference laboratory on a consignment basis. Under the terms of the
         evaluation agreement, the customer will have 90 days to evaluate the
         performance of the SQiDworks system for aiding in the diagnosis of
         rheumatoid arthritis. Upon completion of the evaluation, the
         customer has the option to retain the SQiDworks platform for
         commercial use in its reference laboratory and to purchase IgXplex
         consumables as required to meet its commercial needs.
    

"Our first quarter accomplishments support our 2010 goals of achieving customer acceptance of our technology platform and building the foundation to generate meaningful revenue," said Andrew Morris, CFO of SQI Diagnostics. "Going forward, we will continue to apply our established development process to our emerging pipeline of autoimmune multiplexed panels in order to create more commercial content."

Financial Results

For the quarter ending December 31, 2009, SQI recorded a net loss of $1,620,000 or $0.06 per share, compared to a net loss of $1,467,000 or $0.07 per share for the quarter ended December 31, 2008.

The increased loss for the quarter ending December 31, 2009 was primarily related to increased activity and expenses in the discovery efforts for and development of several IgXplex assays, and ordinary increases in wage and wage-related expenses owing to an increase in personnel and consulting expenses.

Research and Development (R&D) expenditures for the quarter ending December 31, 2009 were $978,000 compared to the $815,000 for the three month period ended December 31, 2008.

The increase in R&D expense for the three month period ended December 31, 2009 compared to the same period in the prior year related primarily to increased laboratory consumable costs and laboratory operating expenses due to the increased R&D activity.

At December 31, 2009, current assets were $8,543,000 compared to $3,649,000 at September 30, 2009. Working capital as at December 31, 2009 was $7,916,000 compared to $3,280,000 at September 30, 2009.

Management believes that cash on hand at December 31, 2009 will be sufficient to fund Company operations for at least 12 months. A successful commercial launch and generation of revenue in the 2010 and 2011 fiscal years would extend this period.

Detailed financial statements and the MD&A are available at www.sedar.com.

About SQI Diagnostics

SQI Diagnostics is a medical systems company that develops proprietary technology in multiplexing, miniaturization and automation. SQI provides laboratories the ability to simultaneously analyze multiple biomarkers, deliver accurate patient results in less time, significantly reduce labour, and increase profits...All in One Drop. For more information please visit www.sqidiagnostics.com.

Certain information in this press release is based on beliefs and assumptions of the Company's senior management and information currently available to it that may constitute forward-looking information within the meaning of securities laws. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

%SEDAR: 00021000E

SOURCE SQI Diagnostics Inc.

For further information: For further information: Chief Financial Officer, Andrew Morris, (416) 674-9500 ext. 229, amorris@sqidiagnostics.com; Media and Investor Relations, Adam Peeler, (416) 815-0700 ext. 225, apeeler@equicomgroup.com


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