Arrayit Corp (OTCMKTS:ARYC) submitted Form 10-Q wherein it stated that gross revenue for the quarter ending June 30, 2015 came at $573,361 compared to $1.949 million in the comparable period, a year earlier. It represents a sharp 70.6% drop in gross revenue YOY.
The highlights
The decline in revenue was a result of company invoicing Avant Diagnostics, Inc. in June 2014 for its work completed toward FDA permission of OvaDx. The sales to unrelated clients surged by $174,166 during the quarter completed June 30, 2015 over the same period in FY2014.The orders backlog stood at nearly $850,000 compared to $634,000 for the quarter ending June 30, 2014.
Arrayit stated that the cost of sales came at $243,439 compared to cost of sales of $271,921 in the three months ended June 30, 2014. The cost of sales is varies according to the product mix. During 2Q2015, the gross margin came at 57.5% against 52.5% for 1Q2014. The sales of premium substrate slides and high-throughput laboratory tools surged in the reported quarter resulting in an improved gross margin in 2Q2015.
The expenses
Arrayit reported that S, G&A expenses in 2Q2015 narrowed to $449,546 compared to $2 million in the same period, a year earlier. The decline in S, G&A expenses can be attributed to the company’s initiatives to cut general and administrative costs. Also, Arrayit created a $1.55 million allowance for doubtful accounts. The legal expenses of $25,341 in 2Q2015 can be attributed to the expenses related with lawsuit against Reuben Taub, and settling the suit with Recap Marketing and Consulting.
The net loss in the quarter came at $146,226 against $414,440 for the quarter ended June 30, 2014. This decline in net loss can be attributed to improved profit margins and lower costs in 2Q2015.
In last trading session, the stock price of Arrayit Corp (OTCMKTS:ARYC) declined more than 18% to close the trading session at $0.00470. The decline came at a share volume of 18.22 million compared to average monthly share volume of 17.06 million.
