NEW YORK – NantHealth said Thursday after the close of the market that its second quarter revenues declined 12 percent to $17.6 million from $20.1 million in Q2 2019
The Culver City, California-based company had total software-related revenues of $17.5 million, down 4 percent from $18.3 million in Q2 2019. All software-related revenues now come from software-as-a-service (SaaS) offerings.
In an earnings call Thursday, CFO Bob Petrou said that the company sacrificed some revenue by offering its NaviNet payor platform for free during the month of May to help struggling healthcare providers manage the COVID-19 pandemic.
Petrou also said that NantHealth booked new SaaS business in Q2 with a nonprofit medical center in New York City and expanded a contract with a major commercial health insurance company. He did not name the clients.
Revenue from sequencing and molecular analysis slipped by 87 percent to $64,000 from $491,000 a year earlier. NantHealth has said many times before that it expects to sequencing revenues to lag until the firm receives a positive coverage determination from the US Centers for Medicare and Medicare Services.
"It will be a while" before GPS Cancer will contribute to revenues, COO Ron Louks said Thursday, referring to the company's flagship whole-genome and transcriptome sequencing test.
Louks did say that the firm in May received a positive coverage determination notice from a molecular diagnostics service for NantHealth's Omics Core technology, a whole-exome tumor-normal in vitro diagnostic that measures overall tumor mutational burden in cancer tissue and reports somatic mutations in 468 cancer-relevant genes. NantHealth gained US Food and Drug Administration clearance in November for Omics Core.
The firm sold its home health business in June 2019 and reported no revenues in that segment in Q2. Home health accounted for $1.3 million in revenues a year earlier.
NantHealth's net loss widened during the quarter to $48.3 million, or $.44 per share, from $14.7 million, or $.13 per share, in the same period a year earlier.
The firm had reported its first-ever quarterly profit in Q1 2020.
NantHealth also said that SG&A expenses decreased by 13 percent in the quarter ended June 30 to just under $12 million from $13.8 million a year earlier. R&D costs grew 24 percent to $4.2 million from the previous year's $4 million.
As of June 30, NantHealth had $37.5 million in cash and equivalents.
On July 22, NantHealth acquired the OpenNMS Group, an open-source network management company, for about $6.1 million.
The company's stock price opened trading Friday morning at $4.70, down 8 percent from Thursday's close at $5.12.