NEW YORK – NantHealth said Thursday after the close of the market that it posted a marginal year-over-year increase in its third quarter revenues.
For the three months ended Sept. 30, the Culver City, California-based company recorded revenues of $22.4 million, compared to $22.3 million in Q3 2018.
However, NantHealth said that it became cash flow-positive for the first time during the quarter.
In Q3 2019, NantHealth had total software-related revenues of $22.1 million, up 11 percent from $19.9 million a year ago. Software as a service-related revenues grew to $18.3 million from $15.9 million, while software and hardware-related revenues slipped to $1.0 million from $1.5 million. Maintenance revenues increased to $2.7 million from $2.5 million.
Meanwhile, sequencing and molecular analysis revenues decreased by 63 percent to $276,000 in the recently completed quarter from $742,000 a year ago as the company continues to limit the number of GPS molecular diagnostic tests it conducts in the absence of insurance reimbursement.
The firm sold its home health business at the end of Q2 and did not report any revenues for that business in the recently completed quarter compared to $1.6 million a year ago.
NantHealth reported a loss of $16.4 million, or $.15 per diluted share, in Q3 2019 compared to a net loss of $97.5 million, or $0.89 per share, in the same period a year ago.
Adjusted loss per share for Q3 2019 was $.07.
Its SG&A costs declined by 11 percent in Q3 to $15.1 million from $17 million in the previous year. Its R&D expenditures fell by nearly 6 percent year over year to $4.6 million from $4.8 million.
The company exited the third quarter with $9.3 million in cash and cash equivalents.
In a conference call, NantHealth COO Ron Louks said that NantHealth performed fewer than 50 GPS tests for the quarter. That includes the GPS Cancer whole-genome and transcriptome sequencing panel and the Liquid GPS liquid biopsy test.
The US Food and Drug Administration is reviewing the company's 510(k) submission for GPS Cancer. CFO Bob Petrou said that revenue from molecular tests will stay low until the company sees higher payor reimbursement, which is unlikely to happen in the absence of FDA clearance.
NantHealth Chairman and CEO Patrick Soon-Shiong said that the company has been in "constant discussion" with the FDA and is optimistic that the agency will render a decision before the end of the year.
CMO Sandeep "Bobby" Reddy declined to comment on the company's future GPS Cancer and marketing strategy until the FDA review process ends. "We don't want to mislead anyone with guidance," he said.
NantHealth has not had to draw on a $100 million line of credit granted in the summer of 2018 by sister company NantCapital, according to Petrou.
The company faces delisting from the Nasdaq Stock Market on Dec. 23 if it does not meet Nasdaq's requirement that the market value of all publicly held shares top $15 million for 10 consecutive business days.
NantHealth shares opened Friday at $.71, down $.02 from Thursday's close.