NEW YORK – Cue Health said after the close of the market on Wednesday that its first quarter revenues fell 86 percent year over year.
For the three months ended March 31, the San Diego-based diagnostic test developer posted $24.8 million in revenues compared to $179.4 million in Q1 2022 and beat the analysts' average estimate of $23.0 million.
Product revenues were $24.5 million, also down 86 percent compared to $177.5 million in Q1 2022, while grant and other revenues were $271,000 compared to $2.0 million a year ago. Private sector revenue was $24.2 million, or 98 percent of total revenue. Public sector revenue was $600,000 and disposable test cartridge revenue was $22.4 million.
Cue Chairman and CEO Ayub Khattak said in a statement that the firm is "executing our strategic plan including expanding the menu on the Cue Health Monitoring System as well as expanding the offering for the Cue Integrated Care Platform. We have cut our annualized costs by an expected $150 million to weather the macroeconomic climate as we make significant progress on our plan."
Earlier this week, the company announced that it has made a de novo submission to the FDA for its molecular respiratory syncytial virus test, which is designed for use at the point of care and at home.
The company also noted that clinical studies for its Cue Strep Molecular Test and Cue Chlamydia + Gonorrhea Molecular Test are ongoing and FDA submissions are expected in the second half of 2023.
Last week, the firm said it would be implementing a cost reduction plan that includes laying off 326 employees, about 30 percent of its global workforce. In January, it announced it would be laying off 388 employees, and last June the firm laid off 170 people.
Cue Health reported a Q1 net loss of $94.2 million, or $.62 per share, compared to net income of $2.8 million, or $.02 per share, in Q1 a year ago, and barely missed the consensus Wall Street estimate for a loss of $.61 per share.
Cue Health exited Q1 with $178.2 million in cash and cash equivalents and $800,000 in restricted cash.
The company said it expects second quarter revenues of $8 million to $10 million, reflecting an expected shift to seasonal respiratory patterns for COVID-19 testing volumes.