FREMONT, Calif., Oct. 31, 2016 /PRNewswire/ -- WaferGen Bio-systems, Inc. (NasdaqCM: WGBS), a life sciences company focused on developing and commercializing technology platforms for genomic solutions, today announced preliminary, unaudited revenue for the third quarter ended September 30, 2016.
The Company expects total revenue for the third quarter to be approximately $2.4 million, which does not include $273,000 in deferred revenue plus backlog for purchase orders received during the third quarter which will be booked in the fourth quarter. Total revenue for the third quarter represents an increase of 20%, when compared to the $2.0 million reported for the third quarter of 2015. The primary driver of revenue growth was sales of the Company's SmartChip™ products and services, including the ICELL8 Single-Cell System, which comprised approximately 72% of total revenue during the quarter, compared to 63% in the prior year period. In addition, cash burn was significantly reduced in the third quarter vs. the second quarter resulting in an estimated ending cash position of $5.1 million on September 30, 2016.
Year-to-date total revenue through the first three quarters is approximately $6.8 million, which represents an increase of 42%, when compared to $4.8 million reported through the third quarter of 2015. The Company is maintaining revenue guidance of $10 million to $12 million for 2016.
"We are pleased to release these results, which demonstrate we are on track to achieve consolidated 2016 revenues exceeding $9 million and provide stockholders with transparency and clarity about the benefit they will receive from the merger with Takara Bio USA Holdings, Inc.," said Rollie Carlson, Ph.D., President and Chief Executive Officer of WaferGen.
As described in the proxy statement for the special meeting called to approve the merger, the consideration to be paid by Takara Bio will be determined primarily by a formula based on WaferGen's consolidated revenues for the year ending December 31, 2016 and on certain specified deductions. The proxy statement provides illustrative calculations based on, among other things, consolidated 2016 revenues of $9.0 million and illustrative deductions of $7.61 million and $4.20 million, showing, based on such assumptions, per share consideration payable to WaferGen stockholders of $1.0000 and $1.1409. Such merger consideration per share would represent a premium of 82% and 107%, respectively, over WaferGen's closing stock price of $0.55 on May 12, 2016, the day preceding the announcement of the merger agreement.
Stockholders who have not yet voted on the merger agreement with Takara Bio USA Holdings, Inc. are reminded every vote will count no matter how many shares you own. Stockholders with questions are encouraged to call WaferGen's information agent and strategic shareholder services advisor, Kingsdale Shareholder Services at 1-866-581-0512 or firstname.lastname@example.org. For further information about the merger proposal, please see the proxy statement mailed to stockholders on or around September 23, 2016.
The quarterly financial results included in this press release were calculated prior to the completion of a review by WaferGen Bio-systems' external auditors and are therefore subject to adjustment. Actual revenues for the third quarter of 2016 may differ materially from our expectations.
WaferGen Bio-systems will announce its third quarter ended September 30, 2016, financial results after the market close and host a conference call and webcast on Tuesday, November 8, 2016.
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Last updated on: 31/10/2016
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