NEW YORK – Quanterix plans to wrap up its ongoing restructuring efforts at the end of the year, President and CEO Masoud Toloue said Tuesday morning during a conference call following the release of the firm's Q3 2023 financial results.
The restructuring, which the company undertook last year to streamline and scale its assay production capabilities, "is expected to be substantially complete by year-end, with assays rolling off our new scalable production platform in January," Toloue said, noting that "incremental improvements" made through the restructuring program "have been positively reflected in our financial results."
For the three months ended Sept. 30, the Billerica, Massachusetts-based company posted revenues of $31.3 million, up 18 percent from $26.6 million in Q3 2022 and beating the consensus Wall Street estimate of $27.6 million.
Q3 product revenues rose 11 percent to $19.7 million from $17.7 million in Q3 2022. Service and other revenues rose 30 percent to $10.9 million from $8.4 million, collaboration and license revenue fell 21 percent to $237,000 from $301,000, and grant revenue was $499,000, up 77 percent from $282,000 the year before.
While overall revenues were up, instrument sales were down 53 percent year over year, which CFO Vandana Sriram attributed to capital expenditure constraints that are negatively impacting the life science tools space more broadly.
Toloue highlighted Quanterix's Alzheimer's business, noting the company's recent agreement with Johnson and Johnson to develop research-use-only Simoa phosphorylated-tau 217 immunoassay kits and laboratory-developed tests using Johnson and Johnson's p-tau 217 antibodies and assay designs.
In October, Quanterix launched its LucentAD p-Tau 217 LDT, a blood-based test for assessing brain amyloid pathology in patients suspected of having Alzheimer's disease. Toloue said the company plans to submit the test to the US Food and Drug Administration "within the next several quarters."
Quanterix posted a Q3 net loss of $7.8 million, or $.21 per share, compared to a net loss of $35.1 million, or $.95 per share, a year ago. It beat the consensus Wall Street estimate of a $.37 per share loss.
The company's R&D spending during the quarter was $7.2 million, up 9 percent from $6.6 million in Q3 2022. Its SG&A expenses were up 18 percent to $23.6 million from $20.0 million a year ago.
The firm ended the quarter with $201.3 million in cash and cash equivalents, $126.4 million in marketable securities, and $2.6 million in restricted cash.
Quanterix increased its full-year 2023 revenue guidance to between $118 million and $120 million, up from its previous guidance of $110 million to $116 million.
In Tuesday morning trading on the Nasdaq, Quanterix shares were up 12 percent to $24.78.