Accelerate Diagnostics Reports Second Quarter 2024 Financial Results

TUCSON, Ariz., Aug. 8, 2024 /PRNewswire/ -- Accelerate Diagnostics, Inc. (Nasdaq: AXDX) today announced financial results for the second quarter ended June 30, 2024.

"During the quarter we completed our pre-clinical trial demonstrating strong analytical performance of our WAVE^TM System and Gram-Negative Positive Blood Culture (PBC) assay. We are pleased to announce our pre-clinical trial was a success," commented Jack Phillips, President and CEO of Accelerate Diagnostics, Inc. "Additionally, we were able to raise an additional $15 million with certain existing noteholders, which we anticipate will fund the company through 2025 and provide us runway to further deliver on our Wave strategic milestones," Mr. Phillips continued.

Second Quarter 2024 Operating Highlights

• Notable WAVE program achievements during the quarter included:
  • Conducted a successful pre-clinical trial for our WAVE system and Gram Positive PBC assay with strong analytical performance.
  • 1,570 WAVE results compared to Broth Microdilution (BMD), with overall Essential and Categorical Agreements of approximately 95% and demonstrated strong reliability.
  • Demonstrated system ease-of-use and minimal hands-on-time preanalytical PBC workflow with clinical microbiologists.
• Executed contract extensions with several strategic customers securing approximately 75% of U.S. Pheno^® customer base to longer-term contracts ahead of the WAVE commercial launch.
• In the United States, added five new contracted Pheno instruments during the quarter, ending the quarter with 350 clinically live revenue-generating instruments and another 74 contracted instruments in the process of being implemented.

Subsequent Event Highlights

• Raised $15 million with certain existing noteholders.
• Retained Perella Weinberg Partners to assist with the review of strategic alternatives.

Second Quarter 2024 Financial Highlights 

• Net sales for the quarter were $3.0 million, compared to $2.9 million for the same quarter of the prior year. Revenues from consumable products increased by 12% compared to the same period in the prior year.
• Gross margin was approximately 23% for the quarter, compared to approximately 27% for the same quarter of the prior year. The decline in gross margin resulted from lower capital instrument product sales mix.
• Selling, general, and administrative (SG&A) costs for the quarter were $5.4 million, compared to $7.6 million for the same quarter of the prior year. SG&A costs include non-cash stock-based compensation of $0.8 million and $1.3 million, respectively, for the same periods. The decline in SG&A costs is a result of lower employee-related expenses. 
• Research and development (R&D) costs for the quarter were $3.9 million, compared to $5.8 million for the same quarter of the prior year. R&D costs include non-cash stock-based compensation of $0.2 million and $0.3 million, respectively, for the same periods. The decline in R&D costs is a result of lower third-party development costs for our WAVE system. 
• Net loss was $11.6 million for the quarter, resulting in a net loss per share of $0.50.
• Ended the quarter with total cash and cash equivalents of $9.7 million, compared to $15.8 million at the start of the quarter, which reflects $2.7 million of net proceeds from financing activities, as well as $1.5 million for both the paydown of the company's previously outstanding 2.50% convertible senior notes and a non-recurring payment to a Wave development partner.

Year-to-date Financial 2024 Highlights

• Net sales were $5.9 million year-to-date, compared to $5.7 million for the same period of the prior year. The increase in revenues was driven by higher consumable products sold in the current year period.
• Gross margin was approximately 24% year-to-date, compared to 23% for the same period of the prior year.
• SG&A costs year-to-date were $11.1 million, compared to $17.7 million for the same period of the prior year. SG&A costs include non-cash stock-based compensation of $1.6 million and $1.2 million, respectively, for the same periods. The decline in SG&A costs is a result of lower employee-related expenses.
• R&D costs were $9.1 million year to date, compared to $12.8 million for the same period of the prior year. R&D costs include non-cash stock-based compensation of $0.5 million and $0.9 million, respectively, for the same periods. The decline in R&D costs is a result of lower employee-related expenses as well as lower third-party development costs for our WAVE system.
• Net loss was $25.8 million year-to-date, resulting in a net loss per share of $1.16.

Full financial results for the quarter ended June 30, 2024 will be filed on Form 10-Q through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov.

Audio Webcast and Conference Call

Management will host a conference call on Thursday, August 8, 2024, at 4:30 p.m. Eastern Time to review second quarter 2024 results.

To listen to the audio webcast online, visit ir.axdx.com. A replay of the audio webcast will be available for 30 days.

To listen by phone, dial +1.877.883.0383 and enter the Elite Entry Number: 9884567. International participants may dial +1.412.902.6506. 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 1377013 until August 29, 2024.

Use of Non-GAAP Financial Measures

This press release contains certain financial measures that are not recognized measures under accounting principles generally accepted in the United States of America ("GAAP"), which include SG&A, R&D, and operating income (loss) amounts excluding stock-based compensation expenses. 

Our management and board of directors use expenses excluding the cost of stock-based compensation and certain impairment transactions to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short-term and long-term operating and financing plans. Accordingly, we believe that expenses excluding the cost of stock-based compensation and certain impairment transactions provides useful information for investors in understanding and evaluating our operating results in the same manner as our management and our board of directors. Expenses excluding the cost of stock-based compensation and certain impairment transactions is a non-GAAP financial measure and should be considered in addition to, not as superior to, or as a substitute for, SG&A expenses, R&D expenses, and operating income (loss) reported in accordance with GAAP. The following tables present a reconciliation of SG&A expenses, R&D expenses and operating income (loss) excluding stock-based compensation and certain impairment transactions to comparable GAAP measures for the periods indicated:

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 "ACCELERATE ARC" and "ACCELERATE WAVE" 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 https://acceleratediagnostics.com/.

Forward-Looking Statements 

Certain of the statements made in this press release and the related conference call are forward-looking or may have forward-looking implications within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the company intends that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements, which can be identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "estimate," or "continue," or variations thereon or comparable terminology, include but are not limited to, statements about: the company's results for the quarter ended June 30, 2024, the company's future development plans and growth strategy, including plans and objectives relating to its future operations, products and performance; projections as to when certain key business milestones may be achieved; expectations regarding the potential or benefits of the company's products and technologies, including the Accelerate Wave system, such as the expectation of the performance of the Wave system based on pre-clinical trials; projections of future demand for the company's products; the company's continued investment in new product development to both enhance its existing products and bring new ones to market; the company's expectations relating to current supply chain impacts and inflationary pressures; the company's expectations regarding its commercial partnerships, including anticipated benefits from such collaborations; the company's intentions and plans relating to regulatory approvals; and the company's liquidity and capital requirements, including the company's expectation that its recent $15 million of incremental  debt will help fund the company through 2025 and provide it runway to further deliver on its Wave strategic milestones. Actual results or developments may differ materially from those projected or implied in these forward-looking statements due to significant risks and uncertainties, including, but not limited to: volatility throughout the global economy and the related impacts to the businesses of the company's suppliers and customers, whether due to customer demand fluctuations, supply chain constraints and inflationary pressures or otherwise; difficulties in resolving the company's continuing financial condition and ability to obtain additional capital to meet its financial obligations; the company's ability to obtain any regulatory approvals; and less than expected operating and financial benefits resulting from cost cutting measures. Other important factors that could cause the company's actual results to differ materially from those in its forward-looking statements include those discussed in the company's filings with the Securities and Exchange Commission (the "SEC"), including in the "Risk Factors" sections of the company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. These forward-looking statements are also based on certain additional assumptions, including, but not limited to, that the company will retain key management personnel; the company will be successful in the commercialization of its products; the company will obtain sufficient capital to commercialize its products and continue development of complementary products; the company will be successful in obtaining marketing authorization for its products from the FDA and other regulatory agencies and governing bodies; the company will be able to protect its intellectual property; the company's ability to respond effectively to technological change; the company's ability to accurately anticipate market demand for its products; and that there will be no material adverse change in the company's operations or business and general market and industry 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. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the company's plans and expectations as of any subsequent date.

SOURCE Accelerate Diagnostics, Inc.