NEW YORK – Cue Health on Wednesday afternoon announced a 36 percent decline in revenues during the second quarter of 2022.
For the three months ended June 30, the San Diego-based diagnostics company posted $87.7 million in revenues, exceeding the company's guidance but down compared to $137.4 million in Q2 2021. Analysts' average estimate was $52.9 million.
Product revenues were $84.4 million compared to $137.4 million in Q2 2021, while grant and other revenues were $3.3 million in Q2 versus no such revenue in the comparable period a year ago.
Cue posted $80.5 million in private sector revenue, up from $32.4 million in the prior year second quarter, and accounting for 92 percent of total revenue.
Disposable test cartridge revenue in Q2 2022 was $82.9 million.
In a statement, the company noted that its pipeline beyond COVID-19 continues to be developed, with plans to submit its standalone test for influenza to the US Food and Drug Administration for de novo approval in Q3. The firm's multiplex COVID-19 and influenza test is also on track for FDA submission for Emergency Use Authorization in Q3, and the company plans to begin clinical trials for its respiratory syncytial virus test also in Q3. Clinical studies for the multiplex chlamydia and gonorrhea test are planned for the second half of 2022, it noted.
Cue Health had a net loss of $99.1 million, or $.67 per share, in the recently completed quarter compared to net income of $19.8 million, or $.14 per share, in Q2 a year ago. Its adjusted loss per share was $.37, beating the consensus Wall Street estimate of $.46.
The company's R&D costs skyrocketed year over year to $44.0 million from $4.7 million. Total operating expenses including R&D rose due to product development, software technology, and menu expansion investments, the company said. There was also a one-time restructuring charge of $1.9 million related to a reduction in the manufacturing workforce.
Cue Health exited the third quarter with $363.1 million in cash and cash equivalents and entered a $100 million secured revolving credit facility on June 30 with East West Bank.
The company said Q3 revenues are expected to be in the range of $55 million to $60 million.
In Thursday morning trading on the Nasdaq, Cue's share price was up about 1 percent to $4.92. On Wednesday, the company's stock price rose 12 percent throughout the day, closing at $4.88.