NEW YORK – Standard BioTools said Wednesday after the close of the market that its second quarter revenues were down 23 percent year over year on a pro forma basis, accounting for combined revenues from the firm and SomaLogic, which it acquired in January.
In response, Standard BioTools revised its full-year revenue guidance to a range of $170 million to $175 million; previously it had guided to revenues in the range of $200 million to $205 million. The news prompted shares of Standard BioTools to plummet 31 percent to $1.56 in midmorning trading on the Nasdaq.
For the three months ended June 30, the South San Francisco, California-based omics research tools company reported total revenues of $37.2 million, down from pro forma revenues of $48.1 million a year ago and missing the Wall Street estimate of $48.3 million. As reported, revenues were up 34 percent year over year from $27.7 million.
"Strong operational execution was offset by weaker-than-anticipated second quarter revenues," CEO Michael Egholm said on a conference call with investors following the release of results. "SomaScan services experienced contract delays, and instrument revenue was down year over year … attributed to headwinds from the ongoing industry-wide restricted capital purchasing environment … combined with the service business variability."
In particular, select customers in Europe, the Middle East, and Africa saw project delays for SomaScan assay services, he said.
"Approximately $9 million of the $11 million decrease in our second quarter revenue was attributed to our assay services business," CFO Jeffrey Black said.
"While our SomaScan service revenues remain concentrated and susceptible to quarterly variability, we are working hard to diversify our customer base, which will help to mitigate this," Black added. "In addition, we are exploring new models to selling SomaScan both with a lower plex, more cost-effective model and single Somamer reagents."
Pro forma product revenue of $22.2 million was down 10 percent year over year, while service revenue of $14.1 million was down 37 percent. Collaboration and other revenues were $989,000, down 13 percent from $1.1 million a year ago.
Instruments accounted for 19 percent of revenues; consumables and kits, 40 percent; instrument support services, 17 percent; and SomaScan services, 21 percent. Proteomics revenues were down 27 percent year over year while genomics revenues were down 6 percent, in line with internal expectations.
The firm also announced that Black will resign, effective Aug. 31, to take a position at another public company. Cofounder and Chief Operating Officer Alex Kim will serve as interim CFO beginning Sept. 1 while the firm searches for a permanent successor.
Net loss for the quarter was $45.7 million, or $.12 per share, compared to a loss of $17.0 million, or $.22 per share, a year ago. On a pro forma basis, loss in the year-ago quarter was $39.6 million.
Standard BioTools' pro forma R&D spending for the quarter was $19.2 million, up 29 percent from $14.9 million year ago while SG&A expenses fell 25 percent to $37.7 million from $50.5 million a year ago.
The firm incurred restructuring and related charges of $5.7 million and transaction and integration expenses of $2.8 million.
"Our team's focus on cost structure and early integration of SomaLogic has accelerated synergy realization in the quarter, and we are now pulling forward the $80 million cost reduction target to the end of 2024, a year ahead of plan," Egholm said.
Standard BioTools repurchased approximately 11.3 million shares of common stock during the second quarter for an aggregate purchase price of approximately $29 million at an average price of $2.57 per share. On May 2, the firm suspended its buyback program, Black said.
The company finished the quarter with $396 million in cash, cash equivalents, restricted cash, and short-term investments.