Accelerate Diagnostics(US:AXDX)2023-05-12 02:36Financial Data and Key Metrics Changes - In Q1 2023, net sales were approximately $2.8 million, a slight decrease from approximately $3 million in Q1 2022, attributed to a lack of new Pheno contracting [5][6] - Cost of goods sold was $1.8 million, resulting in a gross margin of 36%, compared to a gross margin of 27% in the same period in 2022 [6][7] - The net loss was $16.2 million excluding non-cash stock-based compensation, with a GAAP net loss of $16.8 million, resulting in a net loss per share of $0.17 [7] Business Line Data and Key Metrics Changes - The company contracted three new Pheno instruments and brought another 10 live, ending the quarter with a revenue-generating install base of 338 Pheno instruments and a backlog of 62 instruments pending implementation [5] - Selling, general and administrative expenses (SG&A) were $10.2 million, up from $8.2 million in Q1 2022, primarily due to debt restructuring expenses [6] - Research and development costs were $6.4 million, an increase from $5.7 million in the prior year, reflecting further investment in the next generation susceptibility instrument, Wave [7] Market Data and Key Metrics Changes - The partnership with Becton Dickinson (BD) has improved commercial reach, with nearly as many new Pheno opportunities added in Q1 2023 as in all of 2022 [10][11] - The global bloodstream infection campaign was launched in EMEA, generating customer enthusiasm for end-to-end workflow solutions [12] Company Strategy and Development Direction - The company is focused on three strategic priorities: building financial strength, growing market share through the BD partnership, and delivering innovation with the Wave platform [4][8] - The restructuring support agreement (RSA) aims to lower overall debt and simplify the capital structure, with $24 million in new capital secured for development efforts [9][16] - The Wave platform is expected to provide rapid susceptibility test results and significantly improve platform economics, expanding revenue opportunities [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2023, highlighting the positive momentum from the BD partnership and ongoing innovation efforts [16][46] - The company is focused on reducing cash burn and improving operational efficiency while navigating the debt restructuring process [9][38] Other Important Information - The company ended Q1 2023 with cash and investments of $31.9 million [7] - The RSA is pending finalization, with ongoing dialogues with note holders and a shareholder meeting scheduled to facilitate the transaction [30] Q&A Session Summary Question: Momentum with BD on commercialization - Management noted good activity and momentum with BD, particularly in accounts where BD has strong relationships, leading to rapid progression through the sales funnel [20][21] Question: Critical steps for Wave development - The Wave platform is progressing well, with over 25 systems live in clinical labs, and plans for beta units and pre-clinical studies are on track [25][26] Question: Confidence in RSA completion - Management highlighted ongoing documentation and agreements with note holders, with productive dialogues and a shareholder meeting to facilitate the transaction [30] Question: OpEx increase and future outlook - Management acknowledged higher operational expenses due to debt restructuring but anticipates streamlining in subsequent quarters as the company focuses on cash burn and operational efficiency [34][36] Question: Customer base in the sales funnel - The sales funnel includes a mix of existing BD customers and new opportunities, with significant tenders and upgrades occurring in both EMEA and the U.S. [41][42]