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Sequenom, Inc. Reports Financial Results For The Third Quarter Of 2013
Date:11/7/2013

ared to gross margin of 23% for the third quarter of 2012. This improvement is attributable primarily to the positive contribution from the Sequenom Laboratories business resulting from collections for tests performed in the current and prior quarters and improved efficiencies in processing patient samples. Gross margin for the Sequenom Laboratories business in the third quarter of 2013 was approximately 30%, as compared to a negative gross margin in the third quarter of 2012. Gross margin for the Sequenom Bioscience business for the third quarter of 2013 was 64%, flat as compared to the prior year period.

Selling and marketing expenses declined to $12.4 million for the third quarter of 2013 from $12.7 million year-over-year, resulting primarily from lower compensation costs. Research and development expenses of $10.4 million for the third quarter of 2013 were $1.8 million lower than the $12.2 million in the third quarter of 2012, and down sequentially from research and development expenses of $13.0 million for the second quarter of 2013. The decline was primarily due to the completion of Sequenom Laboratories' facility in North Carolina in the second quarter, which was used for commercial testing for all of the third quarter, with expenses included in cost of revenues.

General and administrative expenses for the third quarter of 2013 were $14.1 million, as compared to $10.1 million for the third quarter of 2012, primarily due to increased legal expenses associated with patent litigation, increased internal billing costs due to the growth in test volume and increased collection efforts required to collect revenues. General and administrative expense was up sequentially from $12.7 million from the second quarter of 2013.  

During the third quarter of 2013, a restructuring charge of $6.0 million was recorded in connection with the elimination of approximately 75 positions, the related exit from a facility the Company had planned to occupy for
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SOURCE Sequenom, Inc.
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