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NantHealth Q4 Revenues Increase 3 Percent

NEW YORK – NantHealth reported after the close of the market Thursday that its fourth quarter revenues increased nearly 3 percent to $22.9 million from $22.3 million a year earlier.

The Culver City, California-based company posted a net loss of $49.1 million, or $.45 per share, compared to a net loss of $21.6 million, or $.20 per share, in Q4 2017.

NantHealth realized $17.3 million in revenues from its software-as-a-service operations in Q4, a 10 percent improvement than the $15.8 million in the year-earlier quarter. Software and hardware-related sales totaled $744,000, two-thirds lower than the $2.2 million posted in Q4 2017.

Revenue from sequencing and molecular analysis grew by 9 percent during the three months ended Dec. 31, to $622,000 from $569,000. In home healthcare services, NantHealth posted revenue of $1.7 million in 4Q 2018, 16 percent higher than the prior year's total of just under $1.5 million.

The company said that it sold 539 CPS Cancer and 482 Liquid GPS tests in the fourth quarter. The 1,021 total molecular tests ordered were 10 percent more than in Q3 2018.

NantHealth's R&D expenditures declined by 43 percent to $5.0 million from $8.8 million in the comparable period in 2017. SG&A spending fell 29 percent to $14.6 million from $20.8 million.

At the end of 2018, the company had $18.3 million in cash and equivalents.

For the full year, NantHealth posted $89.5 million in revenues, up 3 percent from $86.7 million in 2017.

Annual net loss widened by about 10 percent to $192.2 million, or $1.76 per share, compared to $175.2 million, or the previous year.

Full-year R&D expenses fell 38 percent to $20.9 million from $33.9 million, while SG&A outlay fell nearly 6 percent to $70.8 million from $75.0 million.

"Looking ahead, our well-developed sales pipeline bodes well for the company's top line, and our entire team is focused on further growing the business, managing costs, and driving meaningful improvement in our financial performance," CFO Bob Petrou said in a statement.