Solexa announced its financial results for the quarter ended June 30, 2006 and provided an update on the Early Access programme for its first-generation Solexa genome analysis system
"We began shipping the Solexa Genome Analysis System on schedule during the second quarter, marking the achievement of a major milestone," said John West, chief executive officer of Solexa.
"To date, we have placed multiple early access instrument systems in leading genome centres.
"We are pleased with the enthusiastic response we have received from our customers, including the decision by one customer, after working with the system for approximately one month, to take delivery of a second unit.
"We will invoice customers when we have met the early access product specifications, which we anticipate will occur later this year.
"Our early Access programme is designed to better prepare us for broad commercial launch of the Solexa genome analysis system.
"We are gaining valuable customer feedback that we expect to use to further enhance our system's performance and robustness, and we are honing our operations and field support activities.
"We continue to anticipate making the Solexa genome analysis system more broadly available this fall and are pleased with our growing order backlog".
Other significant progress in Solexa's preparations for full commercialisation includes the hiring of key management positions in sales, manufacturing and genomics services operations, as well as entering into reagent supply arrangements with Invitrogen and New England Biolabs.
Solexa remains focused on key activities necessary for broad commercial release of the product, including further refining the technical performance of the system, ramping up instrument and consumable manufacturing capacity and building out field operations to provide sales and technical support.
Financial results.
Revenue for the quarter ended June 30, 2006 was $1.1 million, compared with $1.4 million for the quarter ended June 30, 2005.
Revenue during the quarter was derived primarily from services fees generated from Solexa's legacy MPSS technology and does not yet reflect any contribution from the Solexa genome analysis system, Solexa's reversible-terminator chemistry and Clonal Single Molecule Array DNA sequencing platform.
Solexa intends to discontinue performing MPSS services in 2006, and the decrease in revenues is primarily due to the wind-down of these activities.
Other revenue in the second quarter of 2006 was related to a government grant.
