Cord Blood America’s quarterly profit increases

Rising revenues in Argentina and lower overhead helped produce a rare quarterly profit at Cord Blood America.

Second-quarter revenues rose 26 percent compared to the same period a year ago, to $1.8 million, with the bulk of the improvement coming from the Biocordcell division in Argentina. Coupled with a one-fourth reduction in overhead, the company produced a net income of $148,000, or zero cents a share, compared to a loss last year of $1 million, or 1 cent a share.

Cord Blood stores umbilical cord blood collected at a child's birth because it is rich in stem cells. The hope is that medical research will discover cures for certain diseases that would use the stem cells, in addition to a few already available, so the stored blood could be used if the child needs it.

The lower overhead, according to the company's quarterly report, came from a companywide effort to cut spending as well as a reduced marketing budget.

For the six months to date, the revenues of $3.4 million were up 16.3 percent, while the loss fell to $1.1 million, or zero cents a share, from $2.8 million, or 4 cents a share.

Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.