Accelerate Diagnostics Reports First Quarter 2019 Financial Results

TUCSON, Ariz., May 9, 2019 /PRNewswire/ -- Accelerate Diagnostics, Inc. (Nasdaq: AXDX) today announced financial results for the first quarter ended March 31, 2019.

“We are pleased with our continued momentum in the first quarter, as we achieved strong consumable test kit revenue growth, along with a six-fold increase in commercial placements compared to the first quarter of 2018,” said Lawrence Mehren, president and CEO of Accelerate Diagnostics, Inc. “During the quarter, we also began pre-clinical testing for our severe bacterial pneumonia assay, and we reached principle alignment on trial design with the Chinese regulatory agency, bringing us one step closer to commercialization in this important geography. Our first quarter accomplishments, combined with additional evidence of the Accelerate Pheno™ system’s clinical and economic benefits that was presented by our customers at ECCMID a few weeks ago, instill optimism that we will continue to build on this operational and financial performance throughout the remainder of the year.”

First Quarter 2019 Highlights

• Added 75 commercially contracted instruments, compared to 11 in the first quarter of 2018.
• Net sales of $1.8 million, compared to $801 thousand in the first quarter of 2018, driven primarily by an increase in the sale of consumable test kits.
• Gross margin was 48% for the quarter, compared to 39% in the first quarter of 2018. This improvement was driven by higher test kit production levels in the first quarter of 2019 and the sale of pre-FDA manufactured inventory previously expensed to R&D. Excluding the effect of this pre-FDA inventory, gross margin was 45% for the quarter.
• Selling, general, and administrative expenses for the quarter were $12.7 million, compared to $14.4 million in the first quarter of 2018.
• Research and development (R&D) costs for the quarter were $6.9 million, compared to $6.8 million in the first quarter of 2018.
• Net loss was $21.7 million in the first quarter, or $0.40 per share, which included $3.5 million in non-cash stock-based compensation expense.
• Net cash used in the quarter was $15.6 million, and the company ended the quarter with total cash, investments, and cash equivalents of $150.9 million.

Full financial results for the quarter ending March 31, 2019 will be filed on Form 10-Q through the Securities and Exchange Commission’s (SEC) website at http://www.sec.gov.

Audio Webcast and Conference Call

The company will host a conference call at 4:30PM ET today to review its first quarter results. To participate in the conference call, dial +1.877.883.0383 and enter the conference ID: 4972793. International participants may dial +1.412.902.6506. Please dial in 10 to 15 minutes prior to the start of the conference call. A replay of the call will be available by telephone at +1.877.344.7529 (U.S.) or +1.412.317.0088 (international) using access code 10130478 until May 30, 2019.

This conference call will also be webcast and can be accessed from the “Investors” section of the company’s website at axdx.com/investors. A replay of the audio webcast will be available until May 30, 2019.

About Accelerate Diagnostics, Inc.

Accelerate Diagnostics, Inc. is an in vitro diagnostics company dedicated to providing solutions for the global challenges of antibiotic resistance and sepsis. The Accelerate Pheno™ system and Accelerate PhenoTest™ BC kit combine several technologies aimed at reducing the time clinicians must wait to determine the most optimal antibiotic therapy for deadly infections. The FDA cleared system and kit fully automate the sample preparation steps to report phenotypic antibiotic susceptibility results in approximately 7 hours direct from positive blood cultures. Recent external studies indicate the solution offers results 1-2 days faster than existing methods, enabling clinicians to optimize antibiotic selection and dosage specific to the individual patient days earlier.

The “ACCELERATE DIAGNOSTICS” and “ACCELERATE PHENO” and “ACCELERATE PHENOTEST” and diamond shaped logos and marks are trademarks or registered trademarks of Accelerate Diagnostics, Inc.

For more information about the company, its products and technology, or recent publications, visit axdx.com.

Forward-Looking Statements

Certain of the statements made in this press release are forward looking, such as those, among others, about the company’s projections as to when certain key business milestones may be achieved, the potential of the company’s products or technology, the growth of the market, the company’s estimates as to the size of its market opportunity and potential pricing, the company’s competitive position and estimates of time reduction to results, and its future development plans and growth strategy. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Information about the risks and uncertainties faced by Accelerate Diagnostics is contained in the section captioned “Risk Factors” in the company’s most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 1, 2019, and in any other reports that the company files with the Securities and Exchange Commission. The company’s forward-looking statements could be affected by general industry and market conditions. Except as required by federal securities laws, the company undertakes no obligation to update or revise these forward-looking statements to reflect new events, uncertainties or other contingencies.

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SOURCE Accelerate Diagnostics, Inc.

Company Codes: NASDAQ-SMALL:AXDX