NanoString Technologies releases operating results for second quarter of 2020

NanoString Technologies, Inc., a leading provider of life science tools for discovery and translational research, today reported financial results for the second quarter of 2020.

Second Quarter Financial Highlights

• Product and service revenue of $21.1 million, 5% year-over-year decline. On a pro forma basis, reflecting the impact of the Veracyte transaction on revenue recorded for Prosigna IVD kits, product and service revenue increased by 2%
• Instrument revenue of $9.8 million, including $6.3 million of GeoMx Digital Spatial Profiler (DSP) instrument revenue, 98% year-over-year growth
• Consumables revenue of $8.4 million, 42% year-over-year decline. Pro forma decline was 34%
• Service revenue of $3.0 million, 2% year-over-year decline

“We extended our spatial genomics market leadership in the second quarter, generating orders for 20 new GeoMx DSP systems. We recently enabled GeoMx DSP with read-out on next generation sequencers, which significantly expands our market opportunity in the large discovery research community,” said Brad Gray, President and CEO of NanoString. “In addition, despite COVID-19 headwinds we had better than expected nCounter instrument placements and consumable pull-through in the second quarter.”

GeoMx DSP Platform

• GeoMx Orders: Received orders for 20 GeoMx DSP instruments in the second quarter, bringing cumulative orders received to more than 125 instruments since launch
• GeoMx Shipments and Installs: Shipped 24 and installed 11 GeoMx DSP instruments in the second quarter, bringing cumulative shipments to 93 and cumulative installs to 69 instruments since launch
• Launch of Next Generation Sequencing (NGS) Read-out and Cancer Transcriptome Atlas (CTA): Announced the launch of GeoMx DSP compatibility with Illumina’s next generation sequencers, as well as the commercial availability of the CTA, the first in a portfolio of GeoMx DSP products that will utilize NGS read-out
• NGS Read-Out Collaboration with Illumina: Announced collaboration with Illumina to co-develop software solutions for GeoMx DSP data readout using NGS technology to be processed using Illumina’s powerful DRAGEN Bio-IT platform, providing a compute engine for rapid, turnkey spatial biology
• Expanded Bio-Techne/Advanced Cell Diagnostics (ACD) Partnership: Announced an expanded menu of RNAscope probes that are validated for off-the-shelf use with NGS read-out of GeoMx to enable seamless selection of molecularly guided regions-of-interest
• Publications: Sharp acceleration of peer-reviewed publications utilizing GeoMx DSP technology, with 6 new publications in the second quarter, bringing the cumulative total to 23 peer-reviewed publications. A majority of the publications highlight the use of spatial biology, demonstrating our continued and growing leadership in the translational and discovery research markets
• COVID-19 Research Assays: Announced a new GeoMx COVID-19 Immune Response Atlas to offer novel insights into the pathology of the SARS-CoV-2 virus

nCounter Platform

• nCounter Installed Base: Grew installed base to approximately 890 nCounter Analysis Systems at June 30, 2020, as compared to approximately 790 systems at June 30, 2019
• nCounter Publications: Surpassed 3,500 cumulative peer-reviewed publications utilizing nCounter technology
• nCounter Software: Announced collaboration with OnRamp Bioinformatics, a provider of cloud-based genomic analysis tools, for the development of new analysis tools for data generated on nCounter Analysis Systems

Financial

• Balance Sheet Position: Concluded the quarter with approximately $250 million in cash, cash equivalents and short-term investments

Second Quarter Financial Results
The Company has elected to present selected non-GAAP, or adjusted, financial measures, including Adjusted EBITDA. These adjusted financial measures are calculated excluding certain items that may make it more challenging to compare the Company’s GAAP operating results across periods. Such items may include collaboration revenue, stock-based compensation, depreciation and amortization, or one-time charges such as transaction related fees and expenses or restructuring charges and severance costs. A reconciliation of adjusted financial measures to the nearest comparable GAAP financial measure can be found in the notes and table at the end of this press release.

Fiscal Year 2020

On April 6, 2020, as a result of ongoing disruption relating to the COVID-19 pandemic and uncertainty as to the timing with which we expect customer order activity to normalize, the Company announced it was withdrawing its financial guidance for fiscal year 2020. As of the date of this release, management cannot predict the extent or the duration of the impact of the COVID-19 outbreak on the Company’s full year operating results.

-BusinessWire