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Clarient Generates 52% Revenue Increase in Third Quarter 2007
Date:10/30/2007

ared to the third quarter of 2006.

Gross profit in the third quarter of 2007 was $6.3 million, an increase of 79 percent as compared to $3.5 million in the third quarter of 2006. Gross margin in the third quarter 2007 was 52 percent, as compared to 45 percent in the 2006 third quarter. Andrews noted that gross margins are improving as a result of volume growth and better use of the Company's capacity, a better revenue mix, process efficiencies and improved pricing with vendors.

Total operating expenses were $8.7 million for the third quarter of 2007, an increase of 37 percent compared to $6.4 in the third quarter of 2006. The growth in expense was primarily due to restructuring charges incurred during the quarter relating to changes in management, increased professional fees and increased selling, bad debt and collection expenses due to the Company's revenue growth.

Operating loss was $2.4 million, compared to a loss of $2.8 million in the third quarter 2006, a reduction of 14 percent. Net loss from continuing operations in the 2007 third quarter was $2.9 million or $0.04 loss per share as compared to $3.1 million or $0.05 loss per share in the comparable 2006 period. Net loss, including discontinued operations, for the third quarter of 2007 was $2.8 million, or a net loss per share of $0.04, as compared to a net loss of $4.0 million or net loss per share of $0.06 in the third quarter 2006.

Commenting further, Andrews said, "Another significant milestone in the quarter was the first revenue achieved from services related to our novel marker strategy. Along with continued growth from existing cancer diagnostic services, we believe our novel marker program can provide us with additional high-growth revenue streams, which are the foundation of our new business model. While revenue in novel markers is modest now, we are currently in various stages of development with key programs in each of the areas of cancer in which we have franchises. We expe
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SOURCE Clarient, Inc.
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