Diagnostics darling Foundation Medicine ($FMI) generated a large increase in revenue during its 2014 first quarter. But the Cambridge, MA, outfit also faced much higher net losses as it continued to pour more money into expanding its commercial and business development operations. Revenue hit $11.5 million, up from $9.7 million in the 2013 first quarter. Net losses reached $12.2 million in the 2014 first quarter, a big jump over $7.2 million in net losses during the same period last year. Foundation Medicine, known for its signature FoundationOne test for solid tumors and FoundationOne Heme test for hematologic cancers, sarcomas and pediatric cancers, said it handled 4,702 clinical tests in the 2014 first quarter, up from 3,752 in the 2013 fourth quarter. Foundation Medicine raised $106 million in a September 2013 IPO. Release