A new index listing has Applied DNA Sciences anticipating new growth – and increased exposure to potential financiers.
The Stony Brook-based biotech firm, which provides botanical-DNA-based security and authentication, has joined the Russell Microcap Index, one of several indexes operated by global investor-index publisher FTSE Russell. Applied DNA was named to the Microcap Index June 26 as part of FTSE Russell’s annual index reconstitution.
The Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market, including the smallest 1,000 securities in the small-cap Russell 2000 Index plus the next 1,000 smallest eligible securities by market cap. The small-fry index is designed to provide “a comprehensive and unbiased barometer for the microcap segment,” according to FTSE Russell, a Washington State-based amalgam of London-based global index provider FTSE and Seattle-based U.S. index tracker Frank Russell Co.
Applied DNA’s one-year inclusion on the Microcap Index means automatic listings in FTSE Russell’s other growth and value-style indexes – potentially, a huge score for the Stony Brook firm, according to President and CEO James Heyward.
“We believe inclusion in the Russell Microcap Index will increase our recognition in the financial community,” Heyward said in a written statement.
Through its proprietary SigNature DNA system, Applied DNA used double-stranded plant DNA to create security markers for brand protection, supply chain security and anti-theft purposes. Uses include anti-counterfeiting techniques, consumer safety protocols and the trademarked DNAnet forensic tagging system, used by law enforcement to link criminals to crimes.
Due to issue its next quarterly earnings report in August, Applied DNA in May reported a stronger second quarter than one year ago, including a 138 percent increase in revenues, to $1.5 million. Thanks primarily to lower legal fees and reduced administrative expenses, the company was also able to cut its 2Q expenses to $3.4 million, down from $3.8 million the year prior.
Bottom line: total 2Q losses of $1.9 million, down from $2.8 million one year ago.
The company’s financials will now be counted among the $5.7 trillion in assets benchmarked to the Russell Co.’s U.S. indexes. All told, FTSE Russell calculates thousands of indexes, measuring markets in more than 80 countries and covering 98 percent of global investment markets.
Jericho-based Getty Realty Corp., which operates over 900 gas stations and convenience stores across the country, was also named to the Russell Microcap Index as part of the June 26 reconstitution.