On April 12, 2022 NanoString Technologies, Inc. (NASDAQ:NSTG), a leading provider of life science tools for discovery and translational research, reported preliminary total product and service revenue of approximately $31 million for the first quarter (Press release, NanoString Technologies, APR 12, 2022, View Source [SID1234612058]). This unaudited estimate, based on management’s preliminary financial analysis, is lower than the company’s previous guidance for product and service revenue of $34 million to $38 million for the first quarter of 2022.
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Preliminary First Quarter Financial Results
•Product and service revenue of $31 million
•GeoMx Digital Spatial Profiler (DSP) revenue of $10 million. GeoMx DSP revenue includes:
◦Instrument revenue of $5 million, 31% year-over-year decline
◦Consumables revenue of $5 million, 78% year-over-year growth, annualized pull-through of approximately $76,000 per installed system
•nCounter revenue, inclusive of all service revenue, of $21 million. nCounter revenue includes:
◦Instrument revenue of $4 million, 11% year-over-year decline
◦Consumables revenue of $13 million, 5% year-over-year decline, annualized pull-through of approximately $48,000 per installed system
◦Service revenue of $4 million, 16% year-over-year growth
•CosMx Spatial Molecular Imager (SMI): Generated orders for more than 15 CosMx SMI systems, bringing total orders to date to more than 35 systems
"Our first quarter revenue fell short of our expectations. After reviewing the preliminary results with the benefit of hindsight, we believe our Q1 revenue was impacted primarily by two factors. First, uneven sales execution resulted in an imbalance between capturing fourth quarter revenue and developing our Q1 2022 funnel of opportunities. Second, we believe this was compounded by the impact of changes made to re-align our expanded commercial team early in the year," said Brad Gray, President and CEO of NanoString. "Customer interest in spatial biology continues to be strong, and we remain confident in our long-term prospects. We’re currently evaluating our financial outlook for the full year and plan to provide an update on our earnings call on May 10th."
Conference Call
The Company plans to host a conference call on Tuesday April 12, at 5:00pm ET to discuss these preliminary results and provide more details. Investors and other interested parties should register for the conference call in advance by visiting View Source 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 live webcast and audio replay will be made available at the Investor Relations website: www.nanostring.com.
A replay of the call will be available beginning April 12, 2022 around 7:30pm ET through midnight on April 19, 2022. To access the replay, dial (866) 813-9403 or (929) 458-6194 and reference Conference ID: 508842. The webcast will also be available on the Company’s website for one year following the completion of the call.
The Company plans to release full operating results for first quarter of 2022 after the close of trading on Tuesday, May 10, 2022. Company management will host a conference call beginning at 4:30pm ET to discuss those results and provide updated financial guidance.