NEW YORK – NantHealth said Friday after the close of the market that its fourth quarter revenues increased 6 percent year over year to $24.2 million.
In Q4 2019, NantHealth had total software-related revenues of $24.0 million, up 17 percent from $20.5 million in Q4 2018. Software as a service-related revenues grew to $18.4 million from $17.3 million, while software and hardware-related revenues nearly quadrupled to $2.9 million from $744,000. Maintenance revenues increased to $2.7 million from $2.5 million.
Revenue from sequencing and molecular analysis slipped to $152,000 , a 76 percent decline from $622,000 in Q4 2018. In a conference call Friday, CFO Bob Petrou reiterated the company's position 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.
NantHealth did get a boost in Q4 from the November decision by the US Food and Drug Administration to grant 510(k) clearance to the firm's Omics Core technology, a whole-exome tumor-normal in vitro diagnostic that measures overall tumor mutational burden in cancer tissue and reports somatic mutations in 468 cancer-relevant genes. Now, the company is going through the process of obtaining a CPT code for the test so it can seek payor reimbursement, Founder and CEO Patrick Soon-Shiong said in a conference call.
"Until we get this reimbursement in place and make it a sustainable-growth business, we are not going to be continuing the pace that we had before with regard to the tests that we are doing," Soon-Shiong said.
NantHealth sold its home health business in June 2019 and reported no revenues in that segment in the recently completed quarter. That compares to $1.7 million a year ago.
The Culver City, California-based firm trimmed its net loss in the quarter by 76 percent, to $11.8 million, or $.11 per share, from $49.1 million, or $.45 per share in Q4 2018.
SG&A costs in the quarter declined by 5 percent to $13.9 million from $14.6 million in the previous year. NantHealth's R&D expenditures fell by 4 percent year over year to $4.8 million from $5 million.
The company ended the year with $5.2 million in cash and cash equivalents.
For the full year, revenue increased 7 percent to $96.0 million from $89.5 million in 2018.
NantHealth trimmed its net loss in 2019 to $62.8 million, or $.57 per share, from $192.2, or $1.76 per share in 2018.
Full-year SG&A expenses fell 14 percent to $61.0 million from $70.8 million, while R&D outlay declined less than 1 percent to $19.1 million from $20.9 million.
NantHealth said that it closed on its $47.3 million sale of its connected care division to Masimo in February. The 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 transaction has improved our capital position and financial flexibility and allows us to explore growth opportunities," COO Ron Louks said.
The firm has still not had to touch its $100 million line of credit granted in 2018 by sister company NantCapital. With the proceeds of the sale of the connected care unit, NantHealth does not anticipate needing that funding in the near future, Petrou said.