NEW YORK – Accelerate Diagnostics reported after the close of the market on Monday that its first quarter revenues rose 20 percent year over year.
For the three months ended March 31, the Tucson, Arizona-based firm posted revenues of $3.0 million compared to $2.5 million in Q1 2021. The growth was driven by a 29 percent increase in recurring revenues, the company said in a statement.
Instrument revenues, however, decreased during the quarter, Steve Reichling, the firm's CFO, said on a conference call to discuss the firm's financial results.
Accelerate added two contracted instruments and brought five instruments live in the US during the quarter. It ended the quarter with 313 US revenue-generating instruments, with another 76 contracted instruments in the process of being implemented but not yet generating revenues. Accelerate CEO Jack Phillips said on the call that 70 percent of the company's revenue-generating customer base has been secured with long-term contracts.
He added that at the end of the quarter, the company launched its Accelerate Arc platform as a research-use-only device. The platform enables the automated, rapid microbial identification of positive blood cultures across the installed base of MALDI mass spec systems. In a separate announcement on Monday, the company said it has filed in vitro diagnostic registration with the US Food and Drug Administration for the Accelerate Arc Module and BC Kit.
The company has inked deals for "numerous Arc evaluations" and seen the rate of contracting accelerate in the second quarter, he said. The firm expects In Vitro Diagnostic Regulation approval in Europe for the platform later this year.
Phillips noted that Accelerate saw improvement in commercial access globally in the second half of the quarter as COVID-19 hospitalizations have declined.
As for the planned Pheno II instrument, a next-generation version of Accelerate's current Pheno system, the company has locked in its consumable design and finalized the design for the development instruments, which are currently being manufactured. It expects to conduct clinical trials for the system in 2023, with a US launch targeted for 2024, Phillips said.
Accelerate recorded a Q1 net loss of $14.2 million, or $.21 per share, compared to a net loss of $24.2 million, or $.41 per share, in Q1 2021.
The company's R&D expenses fell 13 percent year over year to $6.0 million from $6.9 million, and its SG&A expenses dropped 24 percent year over year to $10.7 million from $14.0 million. Phillips said the company is on track to meet or beat all of its key product development milestones for 2022.
Accelerate ended the quarter with $13.7 million in cash and cash equivalents and $36.7 million in investments. The company raised $4.0 million in an insider financing round in Q1 2022 and decreased debt by $14.0 million via an equity exchange with a principal bond holder, it added.
Phillips reiterated Accelerate's revenue guidance for full-year 2022 revenues of $13 million to $14 million.