NORTHBROOK, Ill., May 16, 2016 (GLOBE NEWSWIRE) -- Nanosphere, Inc. (NASDAQ:NSPH), a company enhancing medicine through targeted molecular diagnostics, today reported financial results for the first quarter March 31, 2016.
Nanosphere achieved record revenues for the first quarter of 2016. Revenues for the first quarter of 2016 were $6.6 million, compared to $4.6 million for the first quarter of 2015. This 43% year-over-year revenue growth was driven predominantly by U.S. based microbiology laboratories continued adoption of our expanding infectious disease menu evidenced by a 55% growth rate in test consumables in the first quarter of 2016 as compared to the prior year period.
Gross margins for the first quarter of 2016 were 46.3%, and remained flat when compared to the prior year period due to depreciation expense of $0.25 million in 2016 related to evaluation equipment held at customer locations.
Research and development expenses in the first quarter of 2016 were $3.7 million, as compared to $3.6 million for the same period in 2015. Sales, general and administrative expenses in the first quarter of 2016 decreased to $4.9 million from $5.2 million during the same period in 2015. This reduction in expenses was due to the repeal of the medical device tax which reduced costs by $0.1 million, a decrease in equity compensation expense related to the reduction in fair value of options granted in recent years compared to prior years of $0.1 million, and a decrease in bad debt expense of $0.1 million.
Net loss for the first quarter of 2016 was $6.6 million compared with $7.5 million for the same period in 2015.
Cash at March 31, 2016 was $18.4 million, with $5 million of this being restricted cash. Cash used in operations during the first quarter of 2016 was $5.3 million, compared to $5.6 million for the same period in 2015, an improvement of $0.3 million.
On January 31, 2016, the company achieved both (i) trailing six month revenue of greater than $12,000,000 in a consecutive six month period, and (ii) greater than 100 cumulative new unit placements during a consecutive 12 month period after January 1, 2015, pursuant to which, on February 5, 2016, the Company was able to draw a second tranche under its term loan facility in the amount of $5 million and is included in our cash balance at March 31, 2016.
About the Verigene® System
The Verigene System uses Nanosphere’s core proprietary gold nanoparticle chemistry to offer highly sensitive, highly specific molecular diagnostic results through low-cost multiplexing. The Verigene System rapidly and accurately detects infectious pathogens and drug resistance markers by targeting conserved genetic regions of a bacterium or virus. Currently, the multiplexed Verigene assays target infections of the blood, respiratory tract and gastrointestinal tract. The information gathered from Verigene test results enables clinicians to make informed patient treatment decisions more quickly, which may result in improved patient outcomes, reduced costs, optimized antibiotic therapy, and reduced spread of antibiotic resistance.
About Nanosphere, Inc.
Nanosphere is enhancing medicine through targeted molecular diagnostics that result in earlier disease detection, optimal patient treatment and improved healthcare economics. The Company’s versatile technology platform, the Verigene ® System, enables clinicians to rapidly detect the most complex, costly and deadly infectious diseases through a low cost and simple-to-use multiplexed diagnostic test. The combination of this innovative technology and Nanosphere’s customer-driven solutions keeps commitment to the patient at the forefront of its business. Nanosphere is based in Northbrook, IL. Additional information is available at: http://www.nanosphere.us.
Except for historical information, the matters discussed in this press release are “forward-looking statements” and are subject to risks and uncertainties. Actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (i) Nanosphere’s ability to develop commercially viable products; (ii) Nanosphere’s ability to achieve profitability; (iii) Nanosphere’s ability to produce and market its products; (iv) Nanosphere’s ability to obtain regulatory approval of its products; (v) Nanosphere’s ability to protect its intellectual property; (vi) competition and alternative technologies; and (vii) Nanosphere’s ability to obtain additional financing to support its operations. Additional risks are discussed in the Company’s current filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
| Nanosphere, Inc. | |||||||
| Condensed Statements of Operations and Comprehensive Loss | |||||||
| (in thousands except per share amounts) | |||||||
| (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2016 | 2015 | ||||||
| Revenue: | |||||||
| Product sales | $ | 6,589 | $ | 4,618 | |||
| Total revenue | 6,589 | 4,618 | |||||
| Costs and Expenses: | |||||||
| Cost of sales | 3,540 | 2,486 | |||||
| Research and development | 3,744 | 3,640 | |||||
| Sales, general, and administrative | 4,911 | 5,226 | |||||
| Restructuring costs | — | 513 | |||||
| Total costs and expenses | 12,195 | 11,865 | |||||
| Loss from Operations | (5,606 | ) | (7,247 | ) | |||
| Other income (expense): | |||||||
| Interest expense | (971 | ) | (287 | ) | |||
| Other income | 9 | 1 | |||||
| Total other expense | (962 | ) | (286 | ) | |||
| Net Loss and Comprehensive Loss | $ | (6,568 | ) | $ | (7,533 | ) | |
| Deemed dividend on Series C convertible preferred stock, due to beneficial conversion feature | $ | (117 | ) | $ | — | ||
| Loss Attributable to Common Shareholders | $ | (6,685 | ) | $ | (7,533 | ) | |
| Net loss per common share - basic and diluted | $ | (0.55 | ) | $ | (1.29 | ) | |
| Weighted average number of common shares outstanding - basic and diluted | 12,114 | 5,842 | |||||
| Nanosphere, Inc. | |||||||
| Condensed Balance Sheets | |||||||
| (in thousands, except share and per share amounts) | |||||||
| (Unaudited) | |||||||
| March 31, 2016 | December 31, 2015 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 13,400 | $ | 15,107 | |||
| Restricted cash | 5,000 | 4,000 | |||||
| Accounts receivable - net of allowance for doubtful accounts | 4,248 | 4,266 | |||||
| Inventories | 5,831 | 6,061 | |||||
| Other current assets | 588 | 403 | |||||
| Total Current Assets | 29,067 | 29,837 | |||||
| Property and equipment - net of accumulated depreciation | 8,899 | 8,895 | |||||
| Intangible Assets - net of accumulated amortization | 1,744 | 1,823 | |||||
| Other Assets | 75 | 75 | |||||
| Total Assets | $ | 39,785 | $ | 40,630 | |||
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 2,209 | $ | 1,769 | |||
| Accrued compensation | 1,377 | 1,628 | |||||
| Other current liabilities | 3,355 | 3,313 | |||||
| Debt - net | 20,552 | 15,340 | |||||
| Total Current Liabilities | 27,493 | 22,050 | |||||
| Total Liabilities | 27,493 | 22,050 | |||||
| Commitments and contingencies | |||||||
| Stockholders' Equity: | |||||||
| Convertible preferred stock, $0.01 par value; 10,000,000 shares authorized; | |||||||
| Series C: 8,384.8, and 8,431.8 shares issued and outstanding as of March 31, 2016, and December 31, 2015, respectively | 3,791 | 4,003 | |||||
| Common stock, $0.01 par value; 150,000,000 shares authorized; 12,270,248 shares and 11,570,248 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 123 | 116 | |||||
| Additional paid-in capital | 467,443 | 466,958 | |||||
| Accumulated deficit | (459,065 | ) | (452,497 | ) | |||
| Total Stockholders’ Equity | 12,292 | 18,580 | |||||
| Total Liabilities and Stockholders' Equity | $ | 39,785 | $ | 40,630 | |||