Third Wave reports clinical growth, continued loss

Madison, Wis. — Higher revenue from its clinical molecular diagnostic products could not prevent Third Wave Technologies, Inc. from reporting a loss for the quarter ending March 31, 2006.

Third Wave reported total revenues of $7.9 million and a net loss of $4.4 million, or ($0.11) a diluted share, for the first quarter. That compares to total revenues of $7.1 million and a net loss of $4.4 million, or ($0.11) a diluted share, for the same period of 2005.

The company, which develops and markets molecular diagnostic reagents for DNA and RNA analysis, reported clinical molecular diagnostic revenue of $4.7 million during the first quarter, including $4.4 million in U.S. revenue. The first quarter 2006 performance is an increase from the $4.3 million reported for the previous quarter and the $3.1 million reported during the first quarter of 2005, which means molecular diagnostic revenue has grown 52 percent in the past year.

Third Wave also generated $3 million in research revenue, which includes a growing contribution from its agricultural biotech business.

Total operating expenses were $12.6 million for the first quarter, compared to $11.6 million for the same period of 2005. Third Wave resolved all but one of its outstanding patent lawsuits during the quarter, and as a result its first-quarter operating expenses included $1.0 million in litigation expense.

The company also is investing in the development of genetic tests to enable personalized medical treatment, including a new blood test designed to help doctors make individual drug treatment decisions for some patients. It ended the quarter with cash, cash equivalents, and short-term investments of $35.6 million, compared to $38.7 million on Dec. 31, 2005.