NEW YORK – NanoString Technologies reported after the close of the market on Thursday that its second quarter revenues dropped 5 percent year over year, the second consecutive quarter of revenue decline.
For the three months ended June 30, the company's total revenues were $32.2 million compared to $33.9 million a year ago and below the consensus Wall Street estimate of $32.3 million.
Product and service revenues were down 5 percent to $32.0 million from $33.6 million in Q2 2021.
Instrument revenue fell 19 percent to $9.5 million from $11.8 million in the prior-year period. Q2 instrument revenue included $5.2 million from sales of the GeoMx Digital Spatial Profiler and $4.3 million from nCounter sales.
Consumables revenues were $17.8 million, down slightly from $18.0 million a year ago. GeoMx consumables revenue was about $5.7 million while nCounter consumables revenue was approximately $12.2 million.
The company's collaboration revenues fell 4 percent to $221,000 from $231,000 a year ago.
For Q2 2022, NanoString generated orders for about 50 spatial biology instruments, representing 65 percent year-over-year growth. These orders included more than 25 CosMx Spatial Molecular Imagers, which the company unveiled at this year's Advances in Genome Biology & Technology (AGBT) annual meeting.
"Orders for our CosMx Spatial Molecular Imager are ahead of our expectations and are helping us build a large revenue backlog that we expect will set us up for significant growth in 2023," NanoString President and CEO Brad Gray said in a statement.
NanoString's Q2 R&D expenses were $17.3 million compared to $17.2 million a year ago, while its SG&A costs grew to $36.1 million from $26.9 million a year ago.
The firm's net loss for the quarter was $39.2 million, or $.85 per share, compared to $27.0 million, or $.60 per share, in Q2 last year. NanoString did not report adjusted EPS, but analysts, on average, had expected a loss of $.68 per share.
NanoString finished the quarter with $126.0 million in cash and cash equivalents and $146.3 million in short-term investments.
For full-year 2022, the firm expects total product and service revenue of $140 million to $150 million, down from previous guidance of $150 million to $160 million. NanoString said the change reflects "an order mix that is weighted more heavily to CosMx, with material CosMx revenue recognition expected to begin in 2023." The firm said nCounter revenue is expected to be $90 million to $95 million, consistent with prior guidance.