Applied DNA Sciences, a provider of DNA-based anti-counterfeiting technology and product authentication solutions and services, has reported an 88% growth in revenue for the first fiscal quarter of 2014 compared with the same period last year.

The company’s revenues amounted to $597,354 compared with $317,670 for the fiscal quarter of 2013. The increase in revenues of $279,684 was primarily due to increases in sales to suppliers of the United States Defense Logistics Agency (DLA) and in the textile industry, the company reports.

Dr James Hayward, President, CEO and Chairman of APDN said: “Our sales pipeline and the strength of our customer base continue to grow. Our investments in R&D have provided an enviable patent estate. With a strong infrastructure in place and an experienced team of employees and management, we are delivering against stronger demands.”

Financial highlights

The figures for the first fiscal quarter 2014 represent the highest first quarter in the company's history. The revenues have been on the increase for each of the last four fiscal years.

Operating expenses for the first quarter were $4,410,097 compared with $2,689,828 for the year-ago first quarter. Research and development expenses increased to $459,304 for the fiscal quarter ended 31 December 2013 from $147,666 for the fiscal quarter ended 31 December 2012.

The increase of $311,638 or 211% is attributable to the increased laboratory space with the company’s new corporate headquarters, as well as an increase in research and development to support the expansion of the company’s business and markets.

Losses

Loss from operations for the first fiscal quarter was $3,812,743 compared with $2,372,158 in the first fiscal quarter of 2013. Loss from change in fair value of warrant liability during the three months ended 31 December 2013 and 2012 was $2,634,758 and $6,332,599, respectively.

Net loss for the first fiscal quarter of 2014 decreased to $6,291,650 from a net loss of $8,704,757 in first fiscal quarter of 2013.

Applied DNA Sciences

The company is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion.

SigNature DNA, SigNature T, fiberTyping, DNANet and digitalDNA, are the company’s principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, APDN reports. They are said to provide a forensic chain of evidence and can be used to prosecute perpetrators.

“Our military and electronics programmes broaden each quarter, and the demand for textile marking has called for shipments of quantities of DNA that we believe are unprecedented in the history of biotechnology,” commented Dr Hayward. “We believe the penetration of SigNature DNA markers in these vertical markets will positively affect future revenues as the demand for DNA authentication continues to rise. We have carefully timed our expansion to match growth. We remain steadily focused on sales.”

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