Cellular Dynamics International said revenues for the quarter that ended June 30 rose nearly 30 percent over the same quarter last year but expenses jumped even more quickly.

The Madison stem cell company reported a net loss of $8.6 million, or 54 cents a share, on $3.6 million in revenues for the most recent quarter compared with a $5.1 million net loss, or $2.92 a share, on revenues of $2.8 million for the same period last year.

Costs rose because of higher research and development expenses related to CDI's contract to set up a stem cell bank with the California Institute for Regenerative Medicine, San Francisco, and to higher expenses resulting from CDI's initial public stock offering in July 2013, the company said.

At the same time, CDI said, it has manufactured stem cells for 179 customers in the past 12 months, up from 136 customers in the previous year, and the largest customers increased their purchases by 45 percent.

"We intend to achieve profitability in the long term," said the company, which was founded in 2004 by UW-Madison stem cell pioneer James Thomson.

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Cellular Dynamics reports higher quarterly revenues and bigger losses