- Record Q3 Revenue of Over $48 Million, 63%
Year on Year Growth, Above Upper End of Q3 Guidance Range -
- Implementing Reorganization of R&D and
Manufacturing Operations to Improve Path to Profitability -
NanoString Technologies, Inc. (NASDAQ:NSTG), a leading provider
of life science tools for discovery and translational research,
today reported preliminary financial and operational highlights for
the third quarter ended September 30, 2023, as well as a
reorganization designed to accelerate the Company’s path to
profitability.
“Our teams delivered strong revenue results for the third
quarter, with preliminary results exceeding consensus estimates and
the high end of our guidance range,” said Brad Gray, President and
CEO of NanoString. “In addition, we began important steps to
deliver on our commitment to improve our financial profile.”
“As part of our Company’s evolution and with a focus toward
achieving profitability, we have decided to reorganize our research
and development and manufacturing operations. As part of this
reorganization, we expect to reduce expenses by more than $15
million on an annualized basis,” continued Mr. Gray. “While we are
confident these changes focus our investments on the activities
that are best for NanoString’s future success, we will have to part
ways with many wonderful colleagues. I would like to thank our team
for their commitment, innovation and hard work.”
“With strong revenue growth and improved working capital, we
were able to reduce our cash burn by about 50% over the prior
quarter,” said Thomas Bailey, Chief Financial Officer of
NanoString. “We expect our reorganization will further reduce our
expenses and net operating loss in the fourth quarter and
2024.”
Preliminary Third Quarter Financial Results
- Revenue is expected to be over $48 million, representing year
on year growth of more than 60%, above the upper end of our
guidance range of $45 to $47 million and above the consensus
revenue estimate of approximately $46 million
- Spatial biology revenue is expected to be approximately $29
million, above the upper end of our guidance range of $27 to $28
million and above the consensus revenue estimate of approximately
$27 million
- nCounter revenue, inclusive of all service and other revenue,
is expected to be approximately $19 million, at the upper end of
our guidance range of $18 to $19 million and in line with the
consensus revenue estimate of approximately $19 million
Third Quarter Highlights
Spatial Biology
- Accelerated CosMx shipments during Q3, resulting in Q3 spatial
biology instrument revenue growth of approximately 348%
year-over-year
- Successfully defended sizeable CosMx SMI instrument order book,
fulfilling or retaining approximately 95% of cumulative orders as
of September 30, 2023
Operating Expenses and
Cash
- Commenced implementing a reorganization of the Company’s
research and development and manufacturing departments and
activities, which is expected to eliminate approximately 110
positions from the Company and reduce expenses by over $15 million
on an annualized basis. A charge of approximately $5 million is
expected to be incurred in the fourth quarter of 2023 primarily as
a result of severance and support being provided to transitioning
employees
- Reduced use of cash to approximately $20 million during the
third quarter, as compared to about $37 million in the second
quarter, with further improvement expected in the fourth quarter
and in 2024
These preliminary results are based on management’s initial
analysis of operations for the quarter ended September 30, 2023 and
are subject to further internal review.
Third Quarter Conference
Call
The Company plans to release full operating results for the
third quarter of 2023 after the close of trading on Monday,
November 6, 2023. Company management will host a conference call
beginning at 4:30pm ET to discuss those results and provide updated
financial guidance.
Investors and other interested parties should register for the
conference call in advance by visiting
https://conferencingportals.com/event/aLWevwch. Following
registration, an email confirmation will be sent that includes
dial-in details and unique conference call codes for entry.
Registration is open throughout the call but to ensure connection
for the full call, registration in advance is recommended.
The link to the webcast and audio replay will be made available
at the Investor Relations website: nanostring.com.
A replay of the call will be available beginning November 6,
2023, at 7:30pm ET through midnight on November 13, 2023. To access
the replay, dial (800) 770-2030 or (647) 362-9199 and reference
Conference ID: 72369. The webcast will also be available on the
Company’s website for one year following the completion of the
call.
About NanoString Technologies, Inc.
NanoString Technologies, a leader in spatial biology, offers an
ecosystem of innovative discovery and translational research
solutions, empowering our customers to map the universe of biology.
The GeoMx® Digital Spatial Profiler is a flexible and consistent
solution combining the power of whole tissue imaging with gene
expression and protein data for spatial whole transcriptomics and
proteomics. The CosMx™ Spatial Molecular Imager is a single-cell
imaging platform powered by spatial multiomics enabling researchers
to map single cells in their native environments to extract deep
biological insights and novel discoveries from one experiment. The
AtoMx™ Spatial Informatics Platform is a cloud-based informatics
solution with advanced analytics and global collaboration
capabilities, enabling powerful spatial biology insights anytime,
anywhere. At the foundation of our research tools is our nCounter®
Analysis System, which offers a secure way to easily profile the
expression of hundreds of genes, proteins, miRNAs, or copy number
variations, simultaneously with high sensitivity and precision. For
more information, visit www.nanostring.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 and the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements regarding our preliminary estimates
of operating and financial results, including cash burn, for the
quarter ended September 30, 2023 and future periods, expectations
for demand for our products and growth in our business, the impact
of new products and expansion into new markets, the growth
trajectory of our nCounter and spatial biology franchises, the
nature, timing and scope of potential workforce reductions, the
expected costs of and expected cost savings from workforce
reductions and the anticipated period time over which such costs
will be paid and cost savings will be realized. Such statements are
based on current assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially.
These risks and uncertainties, many of which are beyond our
control, include the risk that our actual financial results for the
quarter ended September 30, 2023 differ from the estimates
presented in the news release; market acceptance of our products;
adverse conditions in the general domestic and global economic
markets; the effects of ongoing litigation; the impact of
competition; the impact of expanded sales, marketing, and product
development on operating expenses; delays or other unforeseen
problems with respect to manufacturing and product development; the
actual costs of and actual cost savings from the workforce
reductions may differ from our expectations; as well as the other
risks set forth in our filings with the Securities and Exchange
Commission. Furthermore, we are in the process of finalizing our
financial results for the quarter ended September 30, 2023, and
therefore our final results and final analysis of those results are
not yet available. The preliminary expectations regarding third
quarter 2023 financial and operational performance, including third
quarter 2023 revenue, are the responsibility of management and are
subject to management’s review. Actual results could differ from
management’s expectations due to the completion of our quarter-end
closing procedures, final adjustments and developments that may
arise between now and the time our financial and operational
results for the quarter ended September 30, 2023 are finalized. You
should not draw any conclusions as to any other financial or
operational results as of and for the quarter ended September 30,
2023 based on the foregoing estimates and you should read our
unaudited consolidated financial statements for the quarter ended
September 30, 2023 once they become available. These
forward-looking statements speak only as of the date hereof.
NanoString Technologies disclaims any obligation to update these
forward-looking statements.
The NanoString logo, NanoString, NanoString Technologies, GeoMx,
CosMx, AtoMx and nCounter are trademarks or registered trademarks
of NanoString Technologies, Inc., in the United States and/or other
countries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231010836452/en/
Doug Farrell Vice President, Investor Relations & Corporate
Communications dfarrell@nanostring.com Phone: 206-602-1768
NanoString Technologies (NASDAQ:NSTG)
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