Nanosphere reports $0.8 million revenue for first-quarter 2010

Nanosphere, Inc. (Nasdaq:NSPH), a leader in the development and commercialization of advanced molecular diagnostics systems, today reported financial results for the first quarter ended March 31, 2010.

Revenues for the first quarter of 2010 were $0.8 million compared to $0.3 million for the first quarter of 2009 and $0.8 for the fourth quarter of 2009. Product sales were $0.4 million for the first quarter of 2010 as compared to $0.3 million for the 2009 first quarter. Revenues for the first quarter of 2010 included $0.4 million of service revenue related primarily to the assay development contracts with a major pharmaceutical company. Net loss was $8.6 million for the first quarter of 2010 as compared with $8.2 million for the same period in 2009. Cash at the end of the first quarter of 2010 was $67.3 million.

"We continue to make progress expanding the Verigene System test menu for infectious disease, human genetics, pharmacogenetics and protein assays. These tests will increase the applicability of the Verigene System and will generate increased customer placements and utilization," said William Moffitt, Nanosphere's president and chief executive officer.

For the first quarter of 2010, research and development expenses declined to $4.4 million from $4.8 million in the first quarter of 2009. The $0.4 million reduction in research and development expenses resulted from the completion of prototype material investments for the Verigene SP.

Sales, general and administrative expenses increased from $3.1 million for the first quarter of 2009 to $4.1 million for the first quarter of 2010. The $1.0 million increase in sales, general and administrative expenses for the first quarter of 2010 was driven by a $0.7 million increase in non-cash share-based compensation.