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WaferGen Reports Second Quarter 2010 Financial Results
Date:8/16/2010

ix months of 2009.

Net income/loss for the three and six months ended June 30, 2010, was significantly impacted by warrant derivative revaluations.  Net gains from warrant derivative revaluations for the three months ended June 30, 2010 were $3.6 million, compared to $34 thousand for the three months ended June 30, 2009; and $1.7 million for the six months ended June 30, 2010 compared to $48 thousand for the six months ended June 30, 2009.  These non-cash gains are attributed to revaluations of warrants and result primarily from a decrease in the company's stock price in the period.

Operating Expenses For the three months ended June 30, 2010, research and development expenses increased $282,000 as compared to the three months ended June 30, 2009.  For the six months ended June 30, 2010, research and development expenses increased $864,000, as compared to the six months ended June 30, 2009.  The increase resulted primarily from increases in salaries, wages and facilities costs, which arose due to an increase in the head count of employees and an expansion in space occupied in conjunction with the development of SmartChip products and services.  The increase was partially offset by a reduction in depreciation expense.

For the three months ended June 30, 2010, sales and marketing expenses increased by $295,000, as compared to the three months ended June 30, 2009.  For the six months ended June 30, 2010, sales and marketing expenses increased by $409,000, as compared to the six months ended June 30, 2009.  The increase resulted primarily from increases in salaries and wages, including commissions, non-cash stock compensation expense, consulting fees, trade shows and travel, which arose due to an increase in the head count of sales and marketing employees and consultants, and increases in promotional activities in conjunction with the commercialization and early-access sales of SmartChip products and services.'/>"/>

SOURCE WaferGen Biosystems, Inc.
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