NEW YORK – NantHealth said Thursday after the close of the market that its first quarter revenues fell 10 percent year over year to $18.2 million from $20.2 million.
For the quarter ended March 31, NantHealth had total software-related revenues of $18.1 million, up 2 percent from $17.8 million in Q1 2019. All software-related revenues now come from software-as-a-service (SaaS) offerings.
Revenue from sequencing and molecular analysis slipped 93 percent to $59,000 from $814,000 a year earlier.
Culver City, California-based NantHealth has said before that it expects to see a decline in sequencing revenues until it receives a positive coverage determination from the US Centers for Medicare and Medicare Services. Lack of reimbursement has been an ongoing problem for the company for several years.
The firm sold its home health business in June 2019 and reported no revenues in that segment in Q1. That compares to $1.6 million a year earlier.
The firm posted its first-ever quarterly profit, with net income of $23 million, or $.21 per share, compared to a net loss of $20.0 million, or $.18 per share in Q1 2019, thanks to sales of some underperforming assets and continued cutbacks in the provision of unreimbursed molecular tests On an adjusted basis, NantHealth's net loss was $6.1 million, or $.06 per share.
SG&A costs in the quarter declined 19 percent to $12.4 million from $15.3 million in the previous year. NantHealth's R&D expenditures fell 8 percent year over year to $3.6 million from $3.9 million.
The company ended Q1 with $47.5 million in cash and cash equivalents.
NantHealth previously said that it closed on its $47.3 million sale of its connected care division to Masimo in February. These medical device interoperability assets include the DCX device connectivity system (formerly known as DeviceConX), VCX patient vitals software (formerly known as VitalsConX), the HBox connectivity hub, and the Shuttle interface cable.
"The divestiture of this business significantly strengthened our balance sheet, further streamlined our operations, and, along with the sale of home healthcare services business last June, allows us to focus our energies and resources on our primary SaaS business," COO Ron Louks said Thursday in a conference call.
Louks also said that the COVID-19 pandemic had no significant impact on 1Q revenues, but said that it has been difficult to close deals with so many physician offices closed for routine visits since mid-March. However, he said that NantHealth is able to implement its software remotely.
NantHealth shares were down 18 percent at market open on Friday, trading at $2.34 on the Nasdaq.