18 Feb 2011: Sales for NorDiag's sample preparation reached all time high in Q4-2010 as sales of Arrow grew far beyond target.  The segment had a growth Year on Year of 59 per cent in the quarter, and the margins are also moving in the right direction. The Company is on track to break even, and experiences strong interest in its technology from potential partners all over the world. 
 
NorDiag had operating revenues of NOK 29.3 million in Q4-2010, compared with NOK 26.1 million in Q4-2009. The Sample Preparation segment (previous Infectious Diseases segment) had a record quarter again reaching NOK 11.1 million in operating revenues in Q4-2010, compared to NOK 7.0 million in Q4-2009. The HLA Typing segment contributed with NOK 18.1 million, compared to NOK 19.2 million in Q4-2009. For 2010, the total operating revenue was NOK 103.5 million compared with NOK 62.1 million in 2009. Sample preparation segment had a growth of 51% from NOK 20.4 million in 2009 to NOK 30.9 million in 2010.
 
104 Arrow instrument sold in Q4-2010.
NorDiag sold 2 Bullet and 104 Arrow instruments in Q4-2010. Accumulated number of instruments sold/leased by December 31 2010 amounted to 40 Bullet and 244 Arrow instruments. NorDiag's OEM customer Seegene received 128 Arrow instruments in 2010. The primary season for virus (influenza and noro virus) and sale of the Viral kit is from October through March. Bullet kit sales increased from 1.5 million in Q3-2010 to NOK 2.2 million in Q4-2010. 
 
Gross margin related to operating revenues was 31% in Q4-2010, compared with 30% in Q4-2009. The HLA Typing segment had a gross margin of 28% in Q4-2010. The decrease in gross margin for the Sample Preparation segment going from 51% in Q4-2009 to 35% in Q4-2010 is primarily an effect a higher portion of sale of instruments versus kits. Going forward, the margin will gradually be higher for the Sample Preparation segment as both the product mix changes in favor of more kits and the instruments reach full scale production. HLA Typing margins will be relatively stable.
 
NorDiag had NOK 17.9 million in total operating expenses in Q4-2010, compared to NOK 14.3 million in Q4-2009. Some of the increased cost level was temporarily growing challenges, while some were investments necessary to fuel and handle further growth. The cost level is expected to be more normalized in 2011, and run rate down from Q4-2010. Total operating expenses for 2010 were NOK 63.2 million compared to NOK 51.9 million in 2009. Total operating expenses for the sample preparation segment in 2010 was NOK 51.1 million compared to NOK 40.9 million in 2009. Operating expenses (excl. cost of goods sold) were 61% of operating revenues in 2010, compared to 83% in 2009.
 
EBITDA in Q4-2010 was NOK - 8.3 million compared to NOK - 5.7 million in Q4-2009. Sample preparation segment had an EBITDA of NOK - 11.5 million in Q4-2010, and HLA Typing had an EBITDA of NOK 3.1 million in the same period. EBITDA for 2010 was NOK - 30.7 million compared to NOK - 27.3 million in 2009.
 
NorDiag had a net cash position of NOK 35.9 million at the end of Q4-2010.
 
Market opens up
CEO Mårten Wigstøl looks back at 2010 with satisfaction and is optimistic about 2011. "We focused on building an accumulated base of instruments that will consume reagents going forward over several years. In that respect we have achieved more or less what we planned for in 2010, and are now ready for the next step. We have a unique product out there which starts to make its way. Based upon the attention our Arrow technology gets from possible partners all over the world, I am confident that we will reach our targets for 2011, he sums up and continues: "There can also be a possible upside related both to the US market and the "Life Science" market."
 
Wigstøl is now gradually shifting his focus to next step for the company: Reuse the Arrow concept into an integrated desk top system, planned to be in the market in 2012. "This will be a very cost effective solution for laboratories all over the world", he says.
 
Contact:      CEO Mårten Wigstøl                   Phone. +47 911 65775
                      CFO Tone Kvåle                          Phone: +47 915 19576
 
About NorDiag:
NorDiag is a biotechnology company developing, manufacturing and marketing automated solutions (instruments and reagents) for sample preparation of DNA from 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, in West Chester (PA), USA and in Vienna, Austria. The group has today 40 man-labour years. NorDiag is listed on Oslo Stock Exchange with ticker NORD.

For further information - www.nordiag.com.

Read the report here
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Read the notice in Norwegian here