In This Article:
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Net Sales: Approximately $3 million for Q2 2024, compared to $2.9 million in the same period of the prior year.
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Gross Margin: Approximately 23% for the quarter, down from 27% in the prior year.
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Selling, General and Administrative Expenses (SG&A): Approximately $5.4 million, down from $7.6 million in the prior year.
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Research and Development Expenses (R&D): Approximately $3.9 million, down from $5.8 million in the prior year.
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Net Loss: Approximately $11.6 million, with a net loss per share of $0.5.
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Cash Used: Approximately $8.7 million for the quarter, net of financing.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Accelerate Diagnostics Inc (NASDAQ:AXDX) successfully completed a preclinical trial for its WAVE platform, achieving approximately 95% central and categorical agreement across 20 antibiotics.
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The WAVE platform offers same shift results in 4.5 hours on average, which is unmatched by current emerging AST platforms.
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The company has secured additional funding to support operations through 2025, allowing focus on achieving critical WAVE operational and development milestones.
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Approximately 75% of the US customer base is signed to longer-term contracts ahead of the WAVE commercial launch.
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Significant reductions in operating expenses and cash burn have been achieved, with a target to further reduce operating cash burn to about $5 million.
Negative Points
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Net sales for the quarter were approximately $3 million, showing only a slight increase from $2.9 million in the same period the prior year.
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Gross margin declined to approximately 23% from 27% in the prior year, driven by product mix.
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The company reported a net loss of approximately $11.6 million for the quarter.
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Cash used for the quarter was approximately $8.7 million, including notable one-time and nonrecurring payments.
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There is a reliance on achieving further critical WAVE milestones and securing FDA clearance to ensure future success and partnerships.
Q & A Highlights
Q: What levels of central agreement and categorical agreement are needed to drive uptake in the rapid AST field, and what results should be expected from the clinical trial? A: Jack Phillips, President and CEO, stated that the FDA requires a performance above 89.9% for approval. The preclinical trial showed performance in the mid-90s, which gives confidence for a successful clinical trial.
Q: Can you provide more details on the decision to focus on achieving milestones before working with a strategic partner? A: Jack Phillips explained that securing funding through 2025 allows the company to conduct clinical trials and seek FDA clearance for the WAVE system. This strategy is believed to maximize value for stakeholders, and ongoing discussions with strategic partners will continue.