NEW YORK (GenomeWeb) – NanoString Technologies reported after the close of the market Monday that revenues for the fourth quarter rose 43 percent year over year.
Total revenues for the three months ended Dec. 31, 2015 increased to $22.3 million from $15.6 million in 2014, beating the average Wall Street estimate of $21.1 million as well as its own recent revenue projections.
The firm said its instrument revenues increased 25 percent to $7.9 million, driven by sales of nCounter Sprint Profiler systems. Consumables revenue rose 38 percent from Q4 2014 to $9.9 million from $7.2 million, excluding the Prosigna breast cancer testing panel. Revenues from Prosigna totaled $822,000 for the quarter.
On a conference call with analysts, NanoString CFO James Johnson said that foreign exchange effects reduced growth in instrument and consumables revenue by approximately 4 percent. CEO Brad Gray added that instrument sales in the Asia Pacific region recovered from slowness in the third quarter of 2015 and that Prosigna sales outside of the US continue to drive that revenue stream.
NanoString placed 14 nCounter SPRINT systems in the quarter, the firm said in a statement, bringing the total number of systems sold during the year to 20.
NanoString's net loss for the quarter narrowed to $8.8 million or $.44 per share, from $12.4 million, or $.68 per share in Q4 2014, beating the Wall Street estimate of $.54 loss per share.
R&D spending rose 32 percent to $7.1 million, up from $5.4 million in 2014, driven by increased investment in the life science research market and higher costs for diagnostics development. SG&A spending fell 5 percent to $14.2 million from $15.0 million in the prior-year period, reflecting efficiencies from streamlining sales and marketing, the firm said.
For full-year 2015, NanoString reported revenues rose 32 percent to $62.7 million, up from $47.6 million in 2014, and beating analysts' consensus estimates of $61.7 million.
Instrument revenue rose 16 percent to $21.0 million from $18.1 million in 2014, and consumables revenue rose 29 percent to $30.6 million from $23.8 million, excluding Prosigna. Prosigna revenue was $2.5 million for the year.
The firm said its installed base of nCounter instruments had grown to more than 350 placements as of Dec. 31, 2015, with approximately 100 new placements during the year.
NanoString posted a net loss of $45.6 million, or $2.40 loss per share, compared to a net loss of $50.0 million, or $2.80 loss per share in 2014, beating the Wall Street estimate for a loss of $2.48 per share.
"We had a successful year in 2015 achieving virtually all of our strategic objectives, and closing the year with an expanded product line-up, substantially larger addressable markets, increased momentum in diagnostic commercialization, and multiple biopharma collaborations," said President and CEO Brad Gray in a statement. "Simultaneously, our business model delivered another year of strong and consistent revenue growth."
The firm's R&D spending increased 15 percent to $24.6 million, compared to $21.4 million in 2014. SG&A spending increased slightly to $53.2 million, up 4 percent from $51.1 million a year ago.
The firm ended the year with $21.9 million in cash and cash equivalents and $27.2 million in short-term investments.
For 2016, the company said it expects total revenues of $86 million to $90 million, and a net loss of $2.30 to $2.45 per share. NanoString officials said that the guidance would likely change due to additional collaborations and associated revenue; the firm will update the guidance as it announces new collaborations. Wall Street estimates for 2016 are for revenues of $81.6 million and a net loss of $2.35 per share.