NEW YORK – NanoString Technologies said on Tuesday that it plans to eliminate approximately 110 positions while expecting third quarter revenues to grow 63 percent year over year.
The Seattle-based spatial biology firm said the workforce reduction is a result of the "reorganization of the company's research and development and manufacturing departments and activities" and is expected to reduce expenses by more than $15.0 million on an annualized basis.
As a result of the layoffs, a charge of approximately $5.0 million is expected to be incurred in the fourth quarter, the company said, primarily to provide severance payments and support to affected employees.
The company also announced preliminary financial results for Q3 2023. For the three months ending Sept. 30, the firm expects to book more than $48.0 million in revenues, compared to $29.5 million a year ago. This surpasses the company's revenue guidance of $45.0 million to $47.0 million and the Wall Street consensus estimate of $46.2 million.
Of this, spatial biology revenues are estimated to be approximately $29.0 million, higher than the company's previous guidance of $27.0 million to $28.0 million and the consensus revenue estimate of approximately $27.0 million.
Meanwhile, nCounter revenues, inclusive of all service and other revenue, are expected to be around $19.0 million, at the upper end of the guidance range of $18.0 million to $19.0 million, the company said.
NanoString said it has "accelerated" CosMx shipments during Q3, resulting in a spatial biology instrument revenue growth of approximately 348 percent, compared to the same period last year.
Additionally, the company said it "successfully defended sizable CosMx Spatial Molecular Imager instrument order book" against the backdrop of its ongoing patent litigation with 10x Genomics. By the end of Q3, the company fulfilled or retained approximately 95 percent of cumulative orders, it said.