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Quotient Fiscal Q4 Revenues Grow 36 Percent

NEW YORK (360Dx) — Quotient Limited reported today that its fiscal 2019 fourth quarter revenues grew 36 percent year over year.

The Jersey, UK-based diagnostics firm said that total revenues for the three months ended March 31 rose to $8.3 million from $6.1 million a year ago. Product sales from original equipment manufacturing customers grew 28 percent year over year to $5.5 million from $4.3 million, while product sales from direct customers and distributors rose 27 percent to $2.3 million from $1.8 million. Other revenues increased to $450,000 from $13,000.

Quotient had an operating loss of $20.3 million in the recently completed quarter compared to a loss of $17.9 million in Q4 2018.

For full-year 2019, Quotient's total revenues rose 18 percent to $29.1 million from $24.7 million. Product sales from OEM customers grew 20 percent to $20.3 million from $16.9 million, and product sales from direct customers and distributors increased 20 percent to $8.4 million from $7.0 million, while other revenues decreased 43 percent to $469,000 from $819,000.

The company said that capital expenditures for full-year fiscal 2019 dropped to $4.8 million from $21.6 million in fiscal 2018 as it completed the construction of its new conventional reagent manufacturing facility near Edinburgh, Scotland in late fiscal 2018.

It ended fiscal 2019 with $94.8 million in available cash and other short-term investments. On May 15, Quotient sold an additional $25 million of its 12 percent senior secured notes due 2024 for net proceeds of $24.1 million. It used $1.5 million of that to increase its restricted cash reserve account.

Earlier this month, the company said that it received CE marking for the first immunohematology microarray designed to run on its MosaiQ high-throughput automated testing platform.

In a statement, it added that following that, it plans to start a "hypercare" launch with eight selected customers during fiscal 2020. Additionally, the firm continues to expect a CE mark submission for its initial serological disease screening microarray on MosaiQ during the first half of calendar year 2019. Expansion of the immunohematology testing menu is planned for the second half of calendar 2019.

The firm anticipates starting US field trials with the expanded immunohematology menu in Q3 of calendar 2019, and it expects to commence US field trials for the initial SDS microarray in Q3 of calendar year 2019.

Lastly, Quotient said it expects to file for US and European regulatory approval for the expanded immunohematology microarray by the end of calendar 2019.

For full-year fiscal 2020, the firm estimated total product sales of between $30 million and $31 million compared to $28.7 million in fiscal 2019. Other revenues are anticipated to be about $1 million, it said. Its operating loss is expected to be in the range of $77 million to $82 million, which would include non-cash charges for depreciation, amortization, and stock compensation of about $18.5 million. Capital expenditures are estimated to be between $5 million and $10 million.

For fiscal Q1 2020, Quotient said that product sales are anticipated to be between $8.3 million and $8.8 million, which would compare with $7.9 million in Q1 2019.