Revenue up 142 Percent, Global install base up 25 Percent
Revenue up 142 Percent, Global install base up 25 Percent
TUCSON, Ariz., Aug. 6, 2018 /PRNewswire/ -- Accelerate Diagnostics, Inc. today announced financial results for the quarter ending June 30, 2018. The company posted revenue of $1.7 million, up 142% from the prior year quarter, and reported a record number of new agreements signed in the quarter bringing the global total to 430 instruments. Contracts for customer evaluations total 312 instruments while commercial placements grew to 118 across the U.S., European, and Middle East regions.
"We're excited to report a record number of new customer agreements this quarter," said Lawrence Mehren, President and CEO. "While not yet fully translated into revenue, this sales momentum, strong customer advocacy, and upcoming clinical outcome data are quite encouraging."
In addition, the company reported securing new agreements with prominent group purchasing organizations during the quarter. The agreements, covering approximately 1,400 hospitals, add additional value to member hospitals and aim to streamline the adoption process.
The company also announced progress on the development of its severe bacterial pneumonia kit including alignment with the U.S. Food and Drug Administration (FDA) on a shorter and less complex, 510(k) regulatory pathway, and clinical trial for the test. The expected start of the U.S. clinical trial is on or before our Q3 conference call.
Mr. Mehren, together with Steve Reichling, the company's Chief Financial Officer, will host a conference call to review the financial results, commercial progress, and development updates at 4:15 p.m. Eastern Time on August 6, 2018.
Second quarter 2018 results
- Global install base increased by 25% during the quarter
- Net sales of $1.7 million for the second quarter and $2.5 million year to date, compared to $699 thousand and $1.2 million, for the same respective periods in the prior year
- Gross margin realized was 58% for the quarter and 52% year to date
- Selling, general, and administrative expenses for the quarter were $15.3M and $29.7M year to date as compared to $11.5M and $22.0M from the respective same periods in the prior year. These year-over-year increases were driven by higher personnel and customer evaluation related costs in the US and EU
- Research and development costs for the quarter were $6.1M and $12.9M year to date as compared to $5.5M and $9.8M from the respective same periods in the prior year. These year-over-year increases are the result of additional investments in the preparation for respiratory clinical trials and expanded scientific affairs activity
- Net loss of $23.2 million in the second quarter and $44.0 million year to date, or $0.43 and $0.80 per share on weighted average basic shares of 54.0 million and 54.8 million shares outstanding, respectively. This net loss includes $3.4 million in non-cash stock-based compensation expense in the second quarter and $9.0 million year to date.
- Net cash used in the quarter was $17.1 million, ending the quarter with total cash, investments, and cash-equivalents from all activities of $197.4 million
Full financial results for the quarter ending June 30, 2018 will be filed on Form 10-Q through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov. The company anticipates filing on August 7, 2018. Investors are cautioned not to place undue reliance on these preliminary and unaudited estimates in the event of material changes.
Audio Webcast and Conference Call
Listen to an audio webcast of the call by visiting the events section of the company's investor relations website at ir.axdx.com. A replay of the audio webcast will be available until August 27, 2018.
To participate in the conference call, dial +1.877.883.0383 and enter the conference ID: 6994802
International participants may dial +1.412.902.6506. Please dial in 10-15 minutes prior to the start of the conference. 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 10120739 until August 27, 2018.
About Accelerate Diagnostics, Inc.
Accelerate Diagnostics, Inc. (Nasdaq:AXDX), is an in vitro diagnostics company dedicated to providing solutions for the global challenges of sepsis, antibiotic resistance and healthcare-associated infections. Every 3-4 seconds someone dies from sepsis. In the United States, sepsis remains a leading cause of death, taking more lives than HIV, breast cancer, and prostate cancer combined. Bacteria are the most common cause of the serious infections that lead to sepsis, and continue to develop resistance to antibiotics. These antibiotic resistant bacteria further complicate the treatment approach for physicians who already wait days for lab results to determine which antibiotics are likely to be effective against the infection.
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 these infections. The FDA cleared system and kit fully automate the sample preparation steps to report phenotypic antibiotic susceptibility results within 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 or technology, visit axdx.com.
Forward-Looking Statements
Certain of the statements made in this press release are forward looking, such as those, among others, about our projections as to when certain key business milestones may be achieved, the potential of our products or technology, the growth of the market, our estimates as to the size of our market opportunity and potential pricing, our competitive position and estimates of time reduction to results, and our 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, 2018, and in any other reports that we file with the Securities and Exchange Commission from time to time. 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.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEET
(in thousands)
June 30, December 31,
2018 2017
---- ----
Unaudited
ASSETS
Current assets:
Cash and cash
equivalents $66,810 $28,513
Investments 130,594 80,648
Trade accounts
receivable 1,823 1,946
Inventory 11,317 8,063
Prepaid expenses 1,421 850
Other current
assets 643 468
--- ---
Total current
assets 212,608 120,488
Property and
equipment, net 5,443 4,890
Intellectual
property, net 124 134
Other non-current
assets 78 -
Total assets $218,253 $125,512
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,355 $2,080
Accrued liabilities 5,302 3,636
Deferred revenue
and income 185 1,071
Total current
liabilities 7,842 6,787
Other long term
liabilities 26 21
Convertible notes 115,499 -
Total liabilities $123,367 $6,808
======== ======
Commitments and contingencies
Stockholders' equity:
Preferred shares, $0.001 par value;
5,000,000 preferred
shares authorized
and none
outstanding as of
June 30, 2018 and
December 31, 2017 - -
Common stock, $0.001 par value;
75,000,000 common
shares authorized December 31, 2017
with 54,090,575
shares issued and
outstanding on
June 30, 2018 and
75,000,000
authorized with
55,673,810 shares
issued and
outstanding on 54 56
Contributed capital 426,091 360,620
Treasury Stock (45,067) -
Accumulated deficit (286,058) (241,972)
Accumulated other
comprehensive loss (134) -
Total stockholders'
equity 94,886 118,704
------ -------
Total liabilities
and stockholders'
equity $218,253 $125,512
======== ========
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Unaudited
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2018 2017 2018 2017
---- ---- ---- ----
Net sales $1,692 $699 $2,493 $1,230
Cost of sales 717 135 1,210 161
Gross profit 975 564 1,283 1,069
Costs and expenses:
Research and development 6,060 5,527 12,842 9,815
Sales, general and
administrative 15,330 11,460 29,682 21,988
Total costs and expenses 21,390 16,987 42,524 31,803
------ ------ ------ ------
Loss from operations (20,415) (16,423) (41,241) (30,734)
Other income (expense):
Interest expense (3,205) - (3,363) -
Foreign currency exchange
(loss) (253) (7) (198) (33)
Interest income 774 153 1,075 290
Other expense, net (25) (5) (25) (5)
--- --- --- ---
Total other income
(expense), net (2,709) 141 (2,511) 252
------ --- ------ ---
Net loss before income
taxes (23,124) (16,282) (43,752) (30,482)
Provision for income
taxes (101) (175) (285) (175)
Net loss $(23,225) $(16,457) $(44,037) $(30,657)
======== ======== ======== ========
Basic and diluted net
loss per share $(0.43) $(0.31) $(0.80) $(0.58)
Weighted average shares
outstanding 54,003 53,568 54,821 52,732
Other comprehensive loss:
Net loss $(23,225) $(16,457) $(44,037) $(30,657)
Net unrealized (loss)
gain on available-for-
sale investments (2) 3 (55) 3
Foreign currency
translation adjustment (191) 204 (79) 204
---- --- --- ---
Comprehensive loss $(23,418) $(16,250) $(44,171) $(30,450)
======== ======== ======== ========
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Unaudited
(in thousands)
Six Months Ended
June 30, June 30,
2018 2017
---- ----
Cash flows from operating activities:
Net loss $(44,037) $(30,657)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation 1,072 1,045
Amortization of
intangible assets 10 6
Amortization of
investment
discount (146) 219
Equity-based
compensation 9,011 7,450
Amortization of
debt discount and
issuance costs 2,273 -
Loss on disposal of
property and
equipment 266 5
(Increase) decrease in assets:
Accounts receivable 123 (648)
Inventory (3,138) (5,537)
Prepaid expense and
other (444) (624)
Other current
assets (175) (313)
Other non-current
assets (78) -
Increase (decrease) in liabilities:
Accounts payable 206 528
Accrued liabilities 661 392
Accrued Interest 1,105 -
Deferred revenue
and income (935) 43
Deferred
compensation 5 -
--- ---
Net cash used in
operating
activities (34,221) (28,091)
Cash flows from investing activities:
Purchases of
equipment (1,898) (1,643)
Purchases of
available-for-
sale securities (91,272) (39,342)
Sales of available-
for-sale
securities 3,000 6,522
Maturity of
available-for-
sale securities 38,272 18,449
------ ------
Net cash used in
investing
activities (51,898) (16,014)
Cash flows from financing activities:
Issuance of common
stock net of
issuance costs 276 83,854
Exercise of options
and warrants 2,757 3,418
Proceeds from
issuance of
convertible note 171,499 -
Prepayment of
forward stock
repurchase
transaction (45,069) -
Payment of debt
issuance costs (4,991) -
------ ---
Net cash provided
by financing
activities 124,472 87,272
Effect of exchange
rate on cash: (56) 198
Increase in cash
and cash
equivalents 38,297 43,365
Cash and cash
equivalents,
beginning of
period 28,513 19,244
------ ------
Cash and cash
equivalents, end
of period $66,810 $62,609
======= =======
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SOURCE Accelerate Diagnostics
Company Codes: NASDAQ-SMALL:AXDX
