Accelerate Diagnostics Announces First Quarter Financial Results and Provides COVID-19 Business Updates
TUCSON, Ariz., May 7, 2020 /PRNewswire/ -- Accelerate Diagnostics, Inc. (NASDAQ: AXDX), today announced financial results for the quarter ending March 31, 2020 and provided a business update regarding the impact of the ongoing COVID-19 pandemic on the Company's operations.
"Our first quarter got off to a solid start, as sales, new contracts, and go-lives all progressed as anticipated through January and February. As we moved into March, hospitals began shifting their focus toward preparing for and treating COVID-19 patients, and these shifting priorities, along with meaningful restrictions on hospital access, led to lower-than-expected new contracts and go-lives for the quarter," commented Jack Phillips, Chief Executive Officer of Accelerate Diagnostics, Inc. "However, we are adapting our business to maximize our commercial execution in the near term, and we will continue to work diligently on our longer-term initiatives to strengthen our commercial foundation and expand our portfolio of innovative, life-saving products."
2020 First Quarter Financial and Operational Highlights
-- Added 13 net new global commercially contracted instruments, including
21 new U.S. contracted instruments.
-- Live U.S. Pheno instruments at the end of the first quarter were 197,
with another 239 U.S. contracted Pheno instruments not yet live.
-- Net sales for the first quarter of $2.3 million, compared to $1.8
million in the first quarter of 2019.
-- Gross margin was 45% for the quarter, compared to 48% in the first
quarter of 2019.
-- Selling, general, and administrative expenses for the quarter were $12.9
million, compared to $12.7 million in the first quarter of 2019.
-- Research and development (R&D) costs for the quarter were $5.8 million,
compared to $6.9 million in the first quarter of 2019.
-- Net loss was $21.3 million in the first quarter, or $0.39 per share,
which included $4.2 million in non-cash stock-based compensation
expense.
-- Net cash used in the quarter was $16.4 million, and the Company ended
the quarter with total cash, investments, and cash equivalents of $92.0
million.
-- Entered into a commercial collaboration agreement with BioCheck, Inc.,
San Francisco, U.S., including their affiliate, Sophonix Ltd., Beijing,
China, to sell serology-based SARS-COV-2 antibody tests (IgG and IgM) in
the U.S. and EMEA, as disclosed in a press release dated April 14th,
2020.
Full financial results for the quarter ending March 31, 2020 will be filed on Form 10-Q through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov.
First Quarter 2020 Results Conference Call Information
The company will review full financial results for the first quarter of 2020 after the market close on Thursday, May 7, 2020. The company's management will host a conference call at 4:30 p.m. Eastern Time that same day to review the results. To listen to the audio webcast online, visit ir.axdx.com. A replay of the audio webcast will be available until August 7, 2020.
To listen by phone, dial +1.877.883.0383 and enter the conference ID: 8692081
International participants may dial +1.412.317.6506. 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 the replay code 10141855 until May 21, 2020.
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, among others, Mr. Phillips statements about adapting our business to maximize our commercial execution in the near term and our longer-term initiative to strengthen our commercial foundation and expand our portfolio of products. 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 February 27, 2020, 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.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEET
(in thousands, except share data)
March 31, December 31,
2020 2019
Unaudited
ASSETS
Current assets:
Cash and cash
equivalents $
39,487 $
61,014
Investments 52,525 47,437
Trade accounts
receivable 3,143 3,222
Inventory 8,527 8,059
Prepaid expenses 1,771 955
Other current assets 1,291 1,165
Total current assets 106,744 121,852
Property and
equipment, net 8,639 7,905
Right of use assets 3,742 3,917
Other non-current
assets 868 750
Total assets $
119,993 $
134,424
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
3,401 $
2,351
Accrued liabilities 2,428 3,828
Accrued interest 191 1,262
Deferred revenue 186 271
Current operating
lease liability 453 450
Total current
liabilities 6,659 8,162
Non-current operating
lease liability 3,466 3,579
Other non-current
liabilities 93 19
Convertible notes 132,717 130,043
Total liabilities $
142,935 $
141,803
Commitments and contingencies
Stockholders' deficit:
Preferred shares, $0.001 par value;
5,000,000 preferred
shares authorized and
none outstanding as
of March 31, 2020 and
December 31, 2019 -
Common stock, $0.001 par value;
85,000,000 common
shares authorized December 31, 2019
with 54,993,588
shares issued and
outstanding on March
31, 2020 and
85,000,000 common
shares authorized
with 54,708,792
shares issued and
outstanding on 55 55
Contributed capital 457,987 452,344
Treasury stock (45,067) (45,067)
Accumulated deficit (436,067) (414,653)
Accumulated other
comprehensive income
(loss) 150 (58)
Total stockholders'
deficit (22,942) (7,379)
Total liabilities and
stockholders' deficit $
119,993 $
134,424
See accompanying notes to condensed
consolidated financial statements.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Unaudited
(in thousands, except per share data)
Three Months Ended
March 31, March 31,
2020 2019
Net sales $
2,342 $
1,750
Cost of sales 1,287 916
Gross profit 1,055 834
Costs and expenses:
Research and development 5,842 6,933
Sales, general and administrative 12,943 12,723
Total costs and expenses 18,785 19,656
Loss from operations (17,730) (18,822)
Other income (expense):
Interest expense (3,749) (3,459)
Foreign currency exchange loss (128) (59)
Interest income 380 842
Other expense, net (82) (2)
Total other expense, net (3,579) (2,678)
Net loss before income taxes (21,309) (21,500)
Provision for income taxes - (221)
Net loss $
(21,309) $
(21,721)
Basic and diluted net loss per share $
(0.39) $
(0.40)
Weighted average shares outstanding 54,837 54,337
Other comprehensive loss:
Net loss $
(21,309) $
(21,721)
Net unrealized gain on debt securities
available-for-sale 223 121
Foreign currency translation adjustment (15) (76)
Comprehensive loss $
(21,101) $
(21,676)
See accompanying notes to condensed
consolidated financial statements.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Unaudited
(in thousands)
Three Months Ended
March 31, March 31,
2020 2019
Cash flows from operating activities:
Net loss $
(21,309) $
(21,721)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 755 626
Amortization of investment
discount (4) (180)
Equity-based compensation 4,199 3,397
Provision for bad debt expense 8
Amortization of debt discount
and issuance costs 2,674 2,387
Unrealized loss on equity
investments 8
Realized loss (gain) on sale
of investments 3 (2)
Loss on disposal of property
and equipment 432 329
(Increase) decrease in assets:
Accounts receivable (9) (90)
Inventory (1,735) (1,567)
Prepaid expense and other (1,030) (1,041)
Increase (decrease) in liabilities:
Accounts payable 968 1,151
Accrued liabilities, and other (1,475) (1,790)
Accrued interest (1,071) (1,071)
Deferred revenue and income (85) 74
Deferred compensation 74 (7)
Net cash used in operating
activities (17,597) (19,505)
Cash flows from investing activities:
Purchases of equipment (438) (37)
Purchase of marketable
securities (21,582) (12,826)
Proceeds from sales of
marketable securities - 9,000
Maturities of marketable
securities 16,664 28,662
Net cash (used in) provided by
investing activities (5,356) 24,799
Cash flows from financing activities:
Proceeds from issuance of
common stock 111 139
Proceeds from exercise of
options 1,318 3,677
Net cash provided by financing
activities 1,429 3,816
Effect of exchange rate on
cash (3) (61)
(Decrease) increase in cash
and cash equivalents (21,527) 9,049
Cash and cash equivalents,
beginning of period 61,014 66,260
Cash and cash equivalents, end
of period $
39,487 $
75,309
See accompanying notes to condensed
consolidated financial statements.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (CONTINUED)
Unaudited
(in thousands)
Three Months Ended
March 31, March 31,
2020 2019
Non-cash investing activities:
Transfer of instruments
from inventory to
property and equipment $
1,282 $
769
Supplemental cash flow information:
Interest paid $
2,144 $
2,144
Income taxes paid, net of
refunds $
26 $
2
See accompanying notes to condensed
consolidated financial statements.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' DEFICIT
Unaudited
(in thousands)
Three Months Ended
March 31,
2020 2019
Common stock shares
outstanding
Beginning 54,709 54,232
Exercise
of
options 270 215
Issuance
of
common
stock
under
employee
purchase
plan 15 7
Ending 54,994 54,454
Common stock
Beginning $
55 $
54
Ending $
55 $
54
Contributed capital
Beginning $
452,344 $
432,885
Exercise
of
options 1,318 3,677
Issuance
of
common
stock
under
employee
purchase
plan 111 139
Equity
based
compensation 4,214 3,453
Ending $
457,987 $
440,154
See accompanying notes to
consolidated financial statements.
ACCELERATE DIAGNOSTICS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' DEFICIT (CONTINUED)
Unaudited
(in thousands)
Three Months Ended
March 31,
2020 2019
Accumulated deficit
Beginning $
(414,653) $
(330,348)
Cumulative effect of accounting changes (105)
Net loss (21,309) (21,721)
Ending $
(436,067) $
(352,069)
Treasury stock
Beginning $
(45,067) $
(45,067)
Ending $
(45,067) $
(45,067)
Accumulated other comprehensive (loss) income
Beginning $
(58) $
(149)
Net unrealized gain on debt securities
available-for-sale 223 121
Foreign currency translation adjustment (15) (76)
Ending $
150 $
(104)
Total stockholders' (deficit) $
(22,942) $
42,968
See accompanying notes to
consolidated financial statements.
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SOURCE Accelerate Diagnostics, Inc.
