Market Overview

Accelerate Diagnostics reports Q2 2018 financial results

Share:

Accelerate Diagnostics reports Q2 2018 financial results

Revenue up 142 Percent, Global install base up 25 Percent

PR Newswire

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.

Accelerate Diagnostics, Inc.

"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 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 December 31, 2017

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


 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/accelerate-diagnostics-reports-q2-2018-financial-results-300692617.html

SOURCE Accelerate Diagnostics

View Comments and Join the Discussion!