Accelerate Diagnostics Reports Fourth Quarter 2019 Financial Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/16/2026

1. AMAT
2. GLOB
3. SPY
4. RDDT
5. HTFL
6. SNDK
7. WDAY
8. ADYEN:NA
9. DVLT
10. ADYYF

February 27, 2020 4:01 PM EST

TUCSON, Ariz., Feb. 27, 2020 /PRNewswire/ -- Accelerate Diagnostics, Inc. (Nasdaq: AXDX) today announced financial results for the fourth quarter and full year ended December 31, 2019.

Accelerate Diagnostics, Inc. (PRNewsfoto/Accelerate Diagnostics)

"Our contracted instrument trajectory continued over the course of 2019 as we doubled our global contracted instrument base by signing 304 instruments, including 137 units during the fourth quarter. Our full-year revenue was short of expectations as multi-site customers in the U.S. have taken longer than anticipated to go live and begin generating consumable revenue," said Jack Phillips, president and chief executive officer of Accelerate Diagnostics, Inc. "One of my initial areas of focus was to evaluate and re-engineer our go-live process, and I am confident the resulting improvements will help relieve our 255 U.S. instrument backlog and make the process quicker and more predictable. For clinically live accounts, I am encouraged that annual annuities are approximately $45k, proving to be predictable, and these customers are enthusiastic about the outcomes they are realizing."

Fourth Quarter 2019 Highlights

  • Added 137 net new commercially contracted instruments, compared to 133 in the fourth quarter of 2018.
  • Net sales of $3.5 million, compared to $1.8 million in the fourth quarter of 2018, or 94% year-over-year growth.
  • Gross margin was 44% for the quarter, compared to 29% in the fourth quarter of 2018. This increase was the result of lower consumable production costs per unit as production volumes increase. Certain perishable raw materials exceeded expiration and required disposal in the quarter. Excluding the impact of this charge, gross margin for the fourth quarter was 51%.
  • Research and development (R&D) costs for the quarter were $6.2 million, compared to $6.9 million in the fourth quarter of 2018. We expected this spend to remain relatively flat on a year-over-year basis, as our R&D programs remain consistent.
  • Selling, general, and administrative expenses for the quarter were $13.6 million, compared to $13.4 million in the fourth quarter of 2018. These expenses remained relatively unchanged on a year-over-year basis.
  • Net loss was $21.3 million in the fourth quarter, or $0.39 per share, which included $3.2 million in non-cash stock-based compensation expense.
  • Net cash used in the quarter was $13.5 million, and the company ended the quarter with total cash, investments, and cash equivalents of $108.5 million.

Full Year 2019 Highlights

  • Added 304 net new commercially contracted instruments year to date, compared to 202 in 2018.
  • Net sales of $9.3 million, compared to $5.7 million in 2018, or 63% year over year growth.
  • Gross margin was 47%, compared to 44% in 2018. This increase was the result of lower consumable production costs per unit as production volumes increase. Certain perishable raw materials exceeded expiration and required disposal in the fourth quarter. Excluding the impact of this charge, gross margin for the year was 53%.
  • Selling, general, and administrative expenses were $51.9 million, compared to $55.2 million in 2018. This decrease was driven by lower stock-based compensation expense in the current year.
  • Research and development (R&D) costs were $25.3 million, compared to $27.6 million in 2018. We expected this spend to remain relatively flat on a year-over-year basis, as our R&D programs remain consistent.
  • Net loss was $84.3 million, or $1.55 per share, which included $12.6 million in non-cash stock-based compensation expense.
  • Net cash used was $58.0 million, and the company ended the year with total cash, investments, and cash equivalents of $108.5 million.

Full financial results for the quarter and year ending December 31, 2019 will be filed on Form 10-K 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 listen to the conference call, dial +1.877.883.0383 and enter the conference ID: 2860141. 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 replay code 10138283 until May 19, 2020.

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 19, 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 those, among others, about the company's placement trajectory, our belief that our re-engineered go-live process will make our implementation process quicker and more predictable, thereby relieving our backlog, our belief that annual annuities will average approximately $45,000, our expectation that customers will be enthusiastic about clinical results, and our expectation that R&D expenses will be relatively flat from 2019 to 2020. 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.

CONSOLIDATED

BALANCE SHEETS

(in thousands, except share data)

December 31,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

61,014

$

66,260

Investments

47,437

100,218

Trade accounts receivable

3,222

1,860

Inventory

8,059

7,746

Prepaid expenses

955

980

Other current assets

1,165

576

Total current assets

121,852

177,640

Property and equipment, net

7,905

7,303

Right of use assets

3,917

—

Other non-current assets

750

322

Total assets

$

134,424

$

185,265

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

2,351

$

1,322

Accrued liabilities

3,828

4,962

Accrued interest

1,262

1,262

Deferred revenue

271

217

Current operating lease liability

450

—

Total current liabilities

8,162

7,763

Non-current operating lease liability

3,579

—

Other non-current liabilities

19

53

Convertible notes

130,043

120,074

Total liabilities

141,803

127,890

Commitments and contingencies

Stockholders' equity (deficit):

Preferred shares, $0.001 par value;

5,000,000 preferred shares authorized and none outstanding as of December 31, 2019 and 2018

—

—

Common stock, $0.001 par value;

85,000,000 common shares authorized with 54,708,792 shares issued and outstanding on December 31, 2019 and 75,000,000 common shares authorized with 54,231,876 shares issued and outstanding on December 31, 2018

55

54

Contributed capital

452,344

432,885

Treasury stock

(45,067)

(45,067)

Accumulated deficit

(414,653)

(330,348)

Accumulated other comprehensive loss

(58)

(149)

Total stockholders' equity (deficit)

(7,379)

57,375

Total liabilities and stockholders' equity (deficit)

$

134,424

$

185,265

See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share data)

Years Ended December 31,

2019

2018

2017

Net sales

$

9,297

$

5,670

$

4,177

Cost of sales

4,897

3,187

1,002

Gross profit

4,400

2,483

3,175

Costs and expenses:

Research and development

25,345

27,638

22,301

Sales, general and administrative

51,886

55,214

45,058

Total costs and expenses

77,231

82,852

67,359

Loss from operations

(72,831)

(80,369)

(64,184)

Other income (expense):

Interest expense

(14,256)

(10,113)

—

Foreign currency exchange loss

(124)

(450)

(75)

Interest and dividend income

2,809

2,845

908

Other expense, net

(14)

(28)

(184)

Total other income (expense), net

(11,585)

(7,746)

649

Net loss before income taxes

(84,416)

(88,115)

(63,535)

Benefit (provision) for income taxes

111

(211)

(493)

Net loss

$

(84,305)

$

(88,326)

$

(64,028)

Basic and diluted net loss per share

$

(1.55)

$

(1.62)

$

(1.18)

Weighted average shares outstanding

54,506

54,494

54,073

Other comprehensive loss:

Net loss

$

(84,305)

$

(88,326)

$

(64,028)

Net unrealized gain (loss) on available-for-sale investments

193

23

(117)

Foreign currency translation adjustment

(102)

(172)

321

Comprehensive loss

$

(84,214)

$

(88,475)

$

(63,824)

See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands)

Shares

CommonStock Amount

ContributedCapital

AccumulatedDeficit

Treasurystock

AccumulatedOther Comprehensive  Income (Loss)

TotalStockholders' Equity (Deficit)

Balances, January 1, 2017

51,516

$

52

$

255,257

$

(177,289)

$

—

$

(204)

$

77,816

Net loss

—

—

—

(64,028)

—

—

(64,028)

Issuance of common stock

3,085

3

83,221

—

—

—

83,224

Exercise of options and warrants

1,045

1

6,605

—

—

—

6,606

Issuance of common stock under employee purchase plan

28

—

597

—

—

—

597

Unrealized loss on available-for-sale securities

—

—

—

—

—

(117)

(117)

Foreign currency translation adjustment

—

—

—

—

—

321

321

Cumulative impact of accounting change

—

—

—

(655)

—

—

(655)

Equity-based compensation

—

—

14,940

—

—

—

14,940

Balances, December 31, 2017

55,674

56

360,620

(241,972)

—

—

118,704

Net loss

—

—

—

(88,326)

—

—

(88,326)

Exercise of options and restricted stock awards issued

382

—

3,749

—

—

—

3,749

Issuance of common stock under employee purchase plan

35

—

583

—

—

—

583

Unrealized gain on available-for-sale securities

—

—

—

—

—

23

23

Foreign currency translation adjustment

—

—

—

—

—

(172)

(172)

Repurchase of common stock under Prepaid Forward contract

(1,859)

(2)

—

—

(45,067)

—

(45,069)

Issuance of convertible note

—

—

53,283

—

—

—

53,283

Cumulative impact of accounting change

—

—

—

(50)

—

—

(50)

Equity-based compensation

—

—

14,650

—

—

—

14,650

Balances, December 31, 2018

54,232

54

432,885

(330,348)

(45,067)

(149)

57,375

Net loss

—

—

—

(84,305)

—

—

(84,305)

Issuance of common stock

56

—

1,000

—

—

—

1,000

Exercise of options and restricted stock awards issued

396

1

5,364

—

—

—

5,365

Issuance of common stock under employee purchase plan

25

—

458

—

—

—

458

Unrealized gain on available-for-sale securities

—

—

—

—

—

193

193

Foreign currency translation adjustment

—

—

—

—

—

(102)

(102)

Equity-based compensation

—

—

12,637

—

—

—

12,637

Balances, December 31, 2019

54,709

$

55

$

452,344

$

(414,653)

$

(45,067)

$

(58)

$

(7,379)

See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENT OF CASH FLOWS

(in thousands)

Years Ended December 31,

2019

2018

2017

Cash flows from operating activities:

Net loss

$

(84,305)

$

(88,326)

$

(64,028)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

2,602

2,561

2,196

Amortization of investment discount

(427)

(621)

326

Equity-based compensation expense

12,618

14,422

13,933

Amortization of debt discount and issuance costs

9,969

6,849

—

Loss on disposal of property and equipment

837

678

240

(Increase) decrease in assets:

Accounts receivable

(1,362)

86

(1,912)

Inventory

(3,655)

(4,223)

(7,759)

Prepaid expense and other assets

(752)

(250)

(459)

Increase (decrease) in liabilities:

Accounts payable

988

(748)

1,064

Accrued liabilities

(1,327)

1,426

596

Accrued interest

—

1,262

—

Deferred revenue and income

54

(904)

36

Deferred compensation

(34)

32

21

Net cash used in operating activities

(64,794)

(67,756)

(55,746)

Cash flows from investing activities:

Purchases of equipment

(330)

(998)

(2,966)

Purchase of marketable securities

(50,226)

(120,556)

(82,333)

Proceeds from sales of marketable securities

14,500

3,000

11,522

Maturities of marketable securities

88,867

98,416

48,049

Net cash provided by (used in) investing activities

52,811

(20,138)

(25,728)

Cash flows from financing activities:

Proceeds from issuance of common stock

1,458

583

83,821

Proceeds from exercise of options and warrants

5,365

3,749

6,606

Proceeds from issuance of convertible note

—

171,500

—

Prepayment of forward stock repurchase transaction

—

(45,069)

—

Payment of debt issuance costs

—

(4,992)

—

Net cash provided by financing activities

6,823

125,771

90,427

Effect of exchange rate on cash

(86)

(130)

316

Increase (decrease) in cash and cash equivalents

(5,246)

37,747

9,269

Cash and cash equivalents, beginning of period

66,260

28,513

19,244

Cash and cash equivalents, end of period

$

61,014

$

66,260

$

28,513

See accompanying notes to consolidated financial statements.

 

ACCELERATE DIAGNOSTICS, INC.

CONSOLIDATED

STATEMENT OF CASH FLOWS (CONTINUED)

(in thousands)

Years Ended December 31,

2019

2018

2017

Non-cash investing activities:

Transfer of instruments from inventory to property and equipment

$

3,361

$

4,767

$

—

Supplemental cash flow information:

Interest paid

$

4,288

$

2,001

$

—

Income taxes paid, net of refunds

$

41

$

651

$

—

See accompanying notes to consolidated financial statements.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/accelerate-diagnostics-reports-fourth-quarter-2019-financial-results-301012978.html

SOURCE Accelerate Diagnostics, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

PRNewswire, Press Releases

Related Entities

Dividend, Stock Buyback, Earnings, FDA