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Bionano Genomics Q4 Revenues Drop 31 Percent

NEW YORK – Bionano Genomics reported after the close of the market on Thursday a 31 percent year-over-year decrease in its fourth quarter revenues.

The San Diego-based genome mapping firm reported $2.8 million in Q4 revenue, down from $4.0 million a year ago. Revenues consisted of $1.5 million in instrument revenue, down 50 percent from Q4 2018 and consumables revenue of $1.1 million, up 35 percent from the prior year period.

"2019 was a tremendous year for the acceptance, recognition, and support our Saphyr system received from world-class institutions, and we expect to see that trend continue," CEO Erik Holmlin said in a statement. "We are seeing an increase in the number of instruments placed, indicating that Saphyr is being accepted and recognized by leaders in the field." Bionano shipped 11 instruments to customers in the quarter and 39 in 2019 — a 22 percent increase year over year; the Saphyr installed base as of Dec. 31, 2019 was 73.

Revenues were impacted by a shift in business model from capital purchases of instruments to reagent rentals, Holmlin said on a conference call with investors following the release of results. "As [customers] utilize chips, that's the long-term profit driver for the company. So we're comfortable taking that short-term hit, if you will, in the interest of long-term progress and acceptance of the data type," he said. Reagent rental agreements are "very much the norm" in the clinical lab market that the firm is courting, he added.

"With record highs in single-quarter consumable revenues, we believe we are on the cusp of a shift towards broader adoption of our Saphyr system by world-class institutions and we are excited at the trends we see heading into 2020," he said.

Bionano's R&D costs totaled $2.4 million in Q4 2019, down 5 percent from $2.5 million in Q4 2018. Its SG&A costs were $5.9 million, up 27 percent from $4.6 million in Q4 2018.

The firm's net loss for the quarter was $7.9 million, compared to a loss of $6.4 million a year ago.

For full-year 2019, Bionano's revenues decreased 16 percent to $10.1 million from $12 million. Instrument revenue fell 20 percent to $6.7 million and consumables revenues decreased 10 percent to $2.7 million.

The company's R&D expenses for 2019 declined 4 percent to $9.1 million from $9.5 million in 2018, and its SG&A expenses grew 41 percent to $20.2 million from $14.2 million.

Bionano's net loss for 2019 was $29.8 million compared to a loss of $18.5 million in 2018.

As of Dec. 31, 2019 Bionano had $17.3 million in cash and cash equivalents.

Bionano will also be starting a commercial services program to process customer samples either at its own labs or through its network of certified service providers, Holmlin said. The program will provide revenue and "anybody seeking to utilize Bionano data will be able to get it, no matter what," he said.

The company's shares were down 25 percent at $0.86 in Friday morning trading on the Nasdaq.