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NanoString Technologies Q2 Revenues Soar 37 Percent on Strong Instrument Sales

NEW YORK – NanoString Technologies reported Thursday after the close of the market a 37 percent increase in second quarter revenues, in line with preliminary revenues announced last month.

"Strong growth in our spatial biology business and continued durability in our nCounter business helped us generate record revenue during the second quarter," NanoString President and CEO Brad Gray said in a statement. "We expect to continue to benefit from substantial CosMx instrument order backlog through the back half of the year and into 2024, providing visibility into revenue growth and anticipated reductions in our working capital requirements, cash burn, and operating loss."

For the quarter ended June 30, the Seattle-based company reported $44.2 million in revenues, up from $32.2 million in the year-ago period and falling just shy of the Wall Street estimate of $42.5 million. Instrument revenue rose 85 percent in Q2 to $17.6 million from $9.5 million, while consumables revenue grew 20 percent to $21.3 million from $17.8 million. Services and other revenue was $5.3 million, up from $4.8 million in Q2 of 2022.

Spatial biology revenue came in at $23.3 million, while nCounter revenue, including service and other revenue, totaled $20.9 million for the quarter.

The installed base of GeoMx and CosMx spatial biology systems grew to 445 system during the quarter, while the installed base of nCounter instruments increased to 1,135 systems.

The firm recorded a Q2 net loss of $43.7 million, or $.92 per share, compared to a net loss of $39.2 million, or $.85 per share, in Q2 of 2022. Analysts, on average, had expected a net loss of $.67 per share.

R&D costs for the quarter totaled $18.2 million, up 5 percent from $17.3 million last year, and SG&A expenses amounted to $39.1 million, up 8 percent from 36.1 million.

NanoString reiterated its previous revenue guidance for 2023 of $175 million to $185 million, including spatial biology revenue of $100 million to $105 million and nCounter revenue of $75 million to $80 million. The firm also continues to expect an adjusted loss of $65 million to $75 million for the year.

The company ended the quarter with $114.3 million in cash and cash equivalents, $3.3 million in short-term investments, and $625,000 in restricted cash and equivalents.

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