NEW YORK (360Dx) – Accelerate Diagnostics said on Sunday that it anticipates its fourth quarter revenues to be down 14 percent year over year.
Accelerate's total fourth quarter revenues are expected to retreat to approximately $1.8 million from $2.1 million a year ago. The figure would miss the analysts' average estimate of $2.7 million.
The company noted that there was a 127 percent increase in instruments placed under commercial contract in the US in Q4 with contracted instruments increasing by 117 and effectively doubling the US base. There were also an additional 16 instruments added in the Europe, Middle East, and Africa region.
"Our fourth quarter momentum reflects the cumulative effects of changes we initiated throughout 2018 to help more hospitals access the only [US Food and Drug Administration]-cleared solution for quantitative [antimicrobial susceptibility testing] direct from positive blood cultures," said Lawrence Mehren, president and CEO of Accelerate. The company had previously described utilizing more of a reagent rental model, rather than outright purchasing of its instruments, as a way to drive uptake.
For full-year 2018 Accelerate said that it expects revenues to be $5.7 million compared to $4.2 million for full-year 2017, an increase of approximately 36 percent, but short of the consensus Wall Street estimate of $6.6 million.
While the firm is "disappointed" with its 2018 revenue performance, Mehren said, it is encouraged by the acceleration in clinical adoption it saw during the fourth quarter, as well as by improvements to patient care that customers have been reporting in independent outcome studies.
"With a more robust commercial strategy now in place, we believe the company is well-positioned to continue building on this momentum in 2019," Mehren added.
The company said that net cash used, excluding financing, is expected to be approximately $14.1 million for the fourth quarter and $64.1 million for full-year 2018.
In afternoon trading on the Nasdaq, Accelerate's shares were up more than 9 percent to $14.27.