Corporate Highlights and Guidance:
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Record fourth quarter and fiscal year revenues of $4.6 million, and $14.3 million, respectively
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47 new customer placements in the fourth quarter
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Revenue guidance for 2015 set at $18 million to $20 million
- Next Generation system progress advanced in the fourth quarter
NORTHBROOK, Ill., Feb. 11, 2015 (GLOBE NEWSWIRE) -- Nanosphere, Inc. (Nasdaq:NSPH), a company enhancing medicine through targeted molecular diagnostics, today reported financial results for the fourth quarter and fiscal year ended December 31, 2014, and provided guidance for 2015.
As the Company previously announced, Nanosphere achieved record revenues for the fourth quarter and full year of 2014. Revenues for the fourth quarter and full year 2014 were $4.6 million and $14.3 million, respectively, compared to $3.4 million and $10.0 million in the fourth quarter and full year 2013. This 43% growth of year-over-year revenue growth was driven predominantly by U.S. based microbiology laboratories continued adoption of our blood culture BCGP and BCGN tests.
"As we noted in our preliminary release, we are pleased to report continued growth in our core infectious disease consumable business," said Michael McGarrity, Nanosphere's president and chief executive officer. "In addition, we believe there is significant leverage in our growing customer base which will enable us to achieve accelerated growth reflected in our 2015 guidance."
For the fiscal year ending December 31, 2015, the Company currently expects to recognize between $18 million to $20 million in annual revenue.
Costs of sales increased to $8.5 million in 2014 from $6.4 million in 2013, driven by increased volume. Gross margins increased to 41% in 2014 from 36% in 2013. Sales, general and administrative expenses in 2014 increased to $21.8 million from $18.7 million as field sales and customer support teams were expanded. Research and development expenses increased to $21.7 million from $18.6 million in 2013 primarily due to additional clinical trials related to the FDA submission of the Enteric and RP flex assays.
Net loss for 2014 was $39.1 million, compared with $34.6 million in 2013. Net loss for the fourth quarter of 2014 was $9.5 million compared with $8.8 million for the same period in 2013.
McGarrity continued, "We continue to evaluate strategic alternatives that will best allow us to advance our commercial and development initiatives to drive continued revenue growth and leadership position in the market. We are very excited about the progress made in the fourth quarter on our Next Generation Verigene system. This project will enhance our customer experience, advance our competitive position while utilizing our proven chemistry and we look forward to providing additional updates as we move through 2015."
Cash at December 31, 2014 was $21.1 million in 2014 compared to $41.5 million for the same period in 2013. Cash used in operations of $34.9 million for the year ended December 31, 2014 was up $0.9 million as compared to $34.0 million at December 31, 2013 due to a slightly higher net operating loss.
Conference Call & Webcast
| Wednesday, February 11, 2015 @ 5 pm Eastern Time/2 pm Pacific Time | |
| Domestic: | 888-510-1786 |
| International: | 719-325-2491 |
| Passcode: | 9393370 |
| Webcast: | http://www.nanosphere.us/investors |
| Replays – Available through February 25, 2015 | |
| Domestic: | 877-870-5176 |
| International: | 858-384-5517 |
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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. | |||
| Statements of Operations and Comprehensive Loss | |||
| (dollars and shares in thousands, except per share data) | |||
| (unaudited) | |||
| Years Ended December 31, | |||
| 2014 | 2013 | 2012 | |
| Revenue: | |||
| Product sales | $14,290 | $10,002 | $5,034 |
| Grant and contract revenue | — | — | 44 |
| Total revenue | 14,290 | 10,002 | 5,078 |
| Costs and Expenses: | |||
| Cost of sales | 8,496 | 6,418 | 3,541 |
| Research and development | 21,667 | 18,572 | 19,700 |
| Sales, general and administrative | 21,817 | 18,733 | 14,742 |
| Total costs and expenses | 51,980 | 43,723 | 37,983 |
| Loss from operations | (37,690) | (33,721) | (32,905) |
| Other Income (Expense): | |||
| Foreign exchange gain (loss) | (2) | (5) | (8) |
| Interest expense | (1,386) | (943) | (13) |
| Interest income | 8 | 22 | 54 |
| Total other income (expense) | (1,380) | (926) | 33 |
| Net Loss and Comprehensive Loss | $(39,070) | $(34,647) | $(32,872) |
| Net loss per common share — basic and diluted | $(0.47) | $(0.56) | $(0.67) |
| Weighted average number of common shares outstanding — basic and diluted | 83,581 | 62,134 | 49,193 |
| Nanosphere, Inc. | ||
| Balance Sheets | ||
| (dollars in thousands, except per share data) | ||
| (unaudited) | ||
| As of December 31, | ||
| 2014 | 2013 | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 21,053 | $ 41,467 |
| Accounts receivable - Net of allowance for doubtful accounts | 4,292 | 2,821 |
| Inventories | 9,387 | 8,452 |
| Other current assets | 380 | 248 |
| Total current assets | 35,112 | 52,988 |
| Non-current Assets: | ||
| Property and Equipment - Net of accumulated depreciation | 5,072 | 3,673 |
| Intangible Assets - Net of accumulated amortization | 2,080 | 2,406 |
| Other Assets | 183 | 284 |
| Total Assets | $ 42,447 | $ 59,351 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $ 1,827 | $ 1,958 |
| Accrued compensation | 943 | 910 |
| Other current liabilities | 3,173 | 1,534 |
| Long-term debt – current portion | 9,824 | 2,081 |
| Total current liabilities | 15,767 | 6,483 |
| Long-Term Liabilities | ||
| Long-term debt | — | 9,734 |
| Total liabilities | 15,767 | 16,217 |
| Stockholders' Equity: | ||
| Common stock, $0.01 par value; 150,000,000 shares and 100,000,000 shares authorized; 117,295,106 shares and 76,222,606 shares issued and outstanding as of December 31, 2014 and 2013, respectively | 1,173 | 762 |
| Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued | — | — |
| Additional paid-in capital | 447,167 | 424,962 |
| Warrants to acquire common stock | 246 | 246 |
| Accumulated deficit | (421,906) | (382,836) |
| Total stockholders' equity | 26,680 | 43,134 |
| Total Liabilities and Stockholders' Equity | $ 42,447 | $ 59,351 |