DELRAY BEACH, Fla., Nov. 14, 2017 (GLOBE NEWSWIRE) -- PositiveID Corporation (OTC:PSID), a life sciences company focused on detection and diagnostics, announced today its financial results for the quarter ended September 30, 2017. The Company's Form 10-Q can be found in the Investor Relations section of its website.
Third Quarter Financial Highlights
- Revenue for the quarter ended September 30, 2017 increased 38% to $1.5 million from revenue of $1.1 million for the quarter ended September 30, 2016.
- Operating loss for the quarter ended September 30, 2017 improved by 74% from the quarter ended September 30, 2016.
- Net loss for the quarter ended September 30, 2017 improved by 58% from the quarter ended September 30, 2016.
“We are pleased with both our revenue growth in the 2017 third quarter and the improvement in our operations,” said William J. Caragol, Chairman and CEO of PositiveID. “We believe that these results reflect the continued strength and growth in our sales pipeline and backlog. Our ENG team has worked diligently to build a best-in-class name for itself in the mobile labs industry, and we have a solid pipeline for that business. In addition, our Thermomedics subsidiary has developed a next-generation version of its Caregiver thermometer, which we believe will help drive new opportunities for business expansion,” continued Caragol.
“Finally, we are very enthusiastic about our ExcitePCR subsidiary, which we believe is properly positioned for the right strategic partner to push the FireflyDX products toward completion,” said Caragol. “With each of these businesses ready for the next stage of their growth trajectories, we are committed to ensuring their current performance and future success.”
For the quarter ended September 30, 2017, revenues were $1.5 million, compared to $1.1 million for the quarter ended September 30, 2016. The majority of the Company’s revenues for the quarter ended September 30, 2017 came from its Mobile Labs segment, consisting of its E-N-G Mobile Systems subsidiary (“ENG”), which generated $1.4 million of revenue. Cost of revenue was $0.9 million and $0.5 million for the quarter ended September 30, 2017 and 2016, respectively, due to a change in revenue mix.
The Company’s operating loss for the quarter ended September 30, 2017 improved to a loss of $0.9 million from a loss of $3.4 million in the quarter ended September 30, 2016. Net loss for the quarter ended September 30, 2017 improved to a loss of $1.9 million from a loss of $4.5 million in the quarter ended September 30, 2016.
Revenues for the first nine months of 2017 were $3.9 million, compared to $4.6 million for the first nine months of 2016. The decreased revenue for the first nine months of 2017 compared to the prior year period was driven primarily by the timing of delivery of projects in the Mobile Labs segment, which had a large backlog of business at the time the Company acquired ENG in December 2015. As individual projects may be material in the Mobile Labs segment, revenues from quarter to quarter can vary materially based on the timing of such deliveries. As a result, quarterly revenue may not reflect results projected over an annual period.
PositiveID operates in three segments: Mobile Labs, comprised of its ENG subsidiary, a specialty vehicle manufacturer; Medical Devices, comprised of its Thermomedics subsidiary, which markets the Caregiver® non-contact thermometer; and Molecular Diagnostics, consisting of its FireflyDX family of products for real-time pathogen detection at the point-of-need/point-of-care (“POC/PON”).
ENG designs and builds mobile laboratories, wireless support vehicles (cell-on-wheels and cell-on-light-trucks), radio frequency (“RF”) test platforms, broadcast news vehicles, and other technical vehicles. ENG has delivered more than 1,500 specialty vehicles to customers around the globe, including more than 400 mobile laboratories, 600 broadcast news vehicles, and more than 400 vehicles for cellular, RF, infrared, and other applications. In September 2017, PositiveID sold a 49.8% equity interest in ENG for approximately $1.5 million to Holdings ENG, LLC, an affiliate of East West Resources Corporation.
Thermomedics markets the FDA-cleared Caregiver® thermometer, which is a clinical grade, infrared thermometer for measurement of forehead temperature in adults, children, and infants, without contact. It delivers an oral-equivalent temperature directly from the forehead in one to two seconds. Since there is no skin contact and Caregiver does not require probe cover supplies, it reduces the risk of cross-contamination, which is an increasing concern, and saves healthcare facilities the cost of covers (as much as $0.10 per temperature), storage space, and waste disposal costs.
PositiveID, through its ExcitePCR Corporation subsidiary, is developing the FireflyDX family of products, automated pathogen detection systems for rapid diagnostics at the POC/PON. The FireflyDX family products, consisting of the FireflyDX-Portable™ and the FireflyDX-Handheld™, are designed to be lab quality, real-time devices able to detect pathogens faster and less expensively than existing systems. FireflyDX’s applications include POC/PON detection of pathogenic organisms; agricultural and food screening in both domestic sectors and developing countries; and detection of biological agents associated with weapons of mass destruction.
On August 24, 2017, PositiveID Corporation and its wholly-owned subsidiary PositiveID Diagnostics, Inc. (collectively, the “Seller”), entered into an Asset Purchase Agreement (“APA”) with ExcitePCR. Pursuant to the APA, at closing, the Seller will sell and deliver to ExcitePCR all assets used in connection with the operation of the FireflyDX technology. For more information on the APA, please read PositiveID’s Form 8-K filed on August 28, 2017, which can be found here. The Seller and ExcitePCR have not yet closed the transaction.
About PositiveID Corporation
PositiveID Corporation is a life sciences tools and diagnostics company with an extensive patent portfolio. PositiveID develops biological detection and diagnostics systems, specializing in the development of microfluidic systems for the automated preparation of and performance of biological assays. PositiveID is also a leader in the mobile technology vehicle market, with a focus on the laboratory market and homeland security. For more information on PositiveID, please visit http://www.psidcorp.com, or connect with PositiveID on Twitter, Facebook or LinkedIn.
Statements about PositiveID's future expectations, including the likelihood that these results reflect the continued strength and growth in our sales pipeline and backlog; the likelihood that ENG has a solid pipeline; the likelihood that the next-generation version of the Caregiver thermometer will help drive new opportunities for business expansion; the likelihood that ExcitePCR is properly positioned for the right strategic partner to push the FireflyDX products toward completion; the likelihood that each of these businesses is ready for the next stage of their growth trajectories, and we are committed to ensuring their current performance and future success; constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and PositiveID's actual results could differ materially from expected results. These risks and uncertainties include, without limitation, the Company’s ability to target the specialty vehicle market; the Company’s ability to attract new customers and retain existing customers; the Company’s ability to target the professional healthcare market; the Company’s ability to raise capital; the Company’s ability to complete the testing and development of FireflyDX; the Company’s ability to close the APA; as well as other risks. Additional information about these and other factors that could affect the Company's business is set forth in the Company's various filings with the Securities and Exchange Commission, including those set forth in the Company's 10-K filed on March 31, 2017, and 10-Qs filed on November 13, 2017, August 14, 2017, and May 15, 2017, under the caption "Risk Factors." The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.