NorDiag managed to improve operations in the fourth quarter of 2011. Revenue came in at NOK 8.3 million in the quarter, increasing from NOK 5.6 million in Q3 2011. For 2011, the total operating revenue was NOK 30.3 million compared with NOK 30.9 million in 2010. Gross margin in the quarter was 62%, up from 48% in Q3. Operating income (EBITDA) was NOK - 5.9 million compared with NOK  -7.7 million in Q3.
 
The sale of Arrow instruments and kit in the quarter was healthy. In total, the Company sold 30 instruments to direct customers and distributors, and sale of Arrow kit nearly doubled from the previous quarter. A new distribution agreement in the US market with Autogen is expected to contribute to increased sales in this region. There was no new sale or lease of the Bullet instrument, and NorDiag has decided to launch an improved version of the high throughput system called Bullet Pro. This will improve the competitive situation for this product line substantially.
 
The operating expenses for Q4-2011 were NOK - 11.0 million, compared to NOK - 15.9 million in Q4-2010. The Company has initiated a cost reduction program consisting of three phases. Phase 1 is implemented and will reduce the 2012 operating expenses with approximately NOK 7.5 million on a yearly basis. Phase 2 is under implementation and will reduce the 2012 operating expenses with approximately NOK 4.0 million. Furthermore, validation of the automated production line for Arrow kits is completed and in serial production from February 2012. Total production cost including labour and overhead per kit is expected to be reduced with an average of approximately 42% compared to manual production.
 
"We are strongly committed to accelerate the path towards profitability. We are prepared to implement further cost cutting if required, and are continuing our process to attract a strategic partner." says CEO Mårten Wigstøl in a comment.
 
For further information, please contact:
CEO Mårten Wigstøl, Phone: +47 911 65775
CFO Tone Kvål,  Phone: +47 915 19576
 
About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions (instruments and reagents) for sample preparation of DNAfrom difficult biological samples. DNA diagnostics give more rapid and precise answers, and are the fastest growing field within diagnostics. The Company's sample preparation solutions are today used in connection with STI, tuberculosis, MRSA, respiratory pathogens and viruses on instruments for large and small laboratories. NorDiag was founded in 2003 and has its headquarters in Oslo, Norway. The Company has offices and laboratories in Stockholm, Sweden and in Atlanta (GA), USA. The group has today 31.6 man-labour years. NorDiag is listed on the Oslo Stock Exchange with ticker NORD.
 
Q4 Report
Q4 Presentation

Read the notice in Norwegian here.