SQI Diagnostics Reports Second Quarter Financial Results

TORONTO, May 31 /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 second quarter ended March 31, 2010.

    
    Highlights
    -   Completed the installation of an automated SQiDworks(TM) Diagnostics
        Platform and finalized validation studies at a major Canadian
        laboratory. Subsequent to quarter end, the laboratory informed SQI
        that its own validation was complete. SQI is optimistic that it will
        be able to convert this successful validation to commercial revenue
        in the second half of fiscal 2010;
    -   Completed the development of the Celiac 4-plex panel and subsequent
        to the quarter end began validation procedures for the panel;
    -   Finished internal procedures to advance SQI's vasculitis panel to the
        proof-of-concept stage. Subsequent to the quarter end, the Company
        completed proof of concept and moved the vasculitis panel into the
        development stage; and,
    -   Subsequent to quarter end, announced the signing of a development
        agreement with Silliker, Inc., a leading internationally accredited
        company dedicated to improving nutrition, food safety and quality,
        for the commercialization of a botulism toxin panel that will run on
        SQI's SQiDman(TM) analytical system.
    

"We advanced our pipeline of autoimmune test panels and made important headway with prospective lab customers that could benefit from SQI's faster, more efficient technology for biomarker testing," said Andrew Morris, CFO of SQI Diagnostics. "As we develop more content - or test panels - to the commercial stage, the cost savings opportunity for our potential customers that test for multiple autoimmune conditions increases, thereby widening our capacity to generate material revenue."

Financial Results

For the quarter ended March 31, 2010, the Company recorded a net loss of $2,021,000 or $0.07 per share compared to a net loss of $1,473,000 or $0.06 per share for the quarter ended March 31, 2009.

The increased loss for the quarter ending March 31, 2010 was primarily related to greater activity and expenses in the discovery efforts for and development of several IgXplex assays, and increases in research and development wages and wage-related expenses owing to an increase in personnel supporting our R&D efforts. R&D expenditures for the three month period ended March 31, 2010 were $1,273,000 versus $850,000 for the three month period ended March 31, 2009. The increase year-over-year related primarily to increased R&D salaries and related expenses, laboratory consumable costs and laboratory operating expenses due to the increased R&D activity.

Sales and marketing expenses also increased in the quarter compared to the previous year owing to an increase in the number of sales and marketing personnel and to an increase in sales calls and associated expenses.

Corporate expenses, which include administrative salaries and related expenses, general and administrative expenses, advertising and promotion expenses, travel expenses, interest expenses and professional and consulting fees totaled $116,000 for the quarter ended March 31, 2010 compared to $86,000 for the quarter ended March 31, 2009.

At March 31, 2010, current assets were $6,879,000 compared to $3,649,000 at September 30, 2009. Working capital as at March 31, 2010 was $6,332,000 compared to $7,916,000 at December 31, 2009.

Management believes that cash on hand at March 31, 2010 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 through 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This update contains "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Generally, these forward looking statements can be identified by the use of forward looking terminology such as "plans", "anticipated", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". SQI is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward looking statements contained in this release. SQI cannot assure investors that actual results will be consistent with these forward looking statements and SQI assumes no obligation to update or revise the forward looking statements contained in this release to reflect actual events or new circumstances.

%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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890