NEW YORK – Singular Genomics Systems said Monday that it has cut its workforce by 20 percent to reduce operating expense and extend its cash runway.
The cuts are meant to help the company "focus resources more heavily on our spatial sequencing product roadmap," CEO and Cofounder Drew Spaventa said on a conference call with investors following the release of Singular's fourth quarter financial results.
"We have also taken actions to reduce our non-personnel-related operating expenses in 2024 to further decrease our cash burn," CFO Dalen Meeter said, noting these cuts are in addition to cost savings implemented in October 2023. "In total, we estimate the combined savings from these actions will reduce annualized operating expenses by approximately $20 million and extend our cash runway to late 2026."
For the three months ended Dec. 31, the San Diego-based sequencing technology firm reported revenues of $1.1 million, up 41 percent from $765,000 a year ago and in line with analysts' average estimate. Instrument revenue was approximately $900,000, Meeter said, while consumables revenues were approximately $200,000.
The firm shipped eight G4 sequencers in the quarter, bringing the installed base to 24 as of Dec. 31.
Singular's net loss for the quarter was $23.2 million, or $.32 per share, compared to a loss of $21.1 million, or $.29 per share, in Q4 2022, beating the consensus Wall Street estimate of a $.34 loss per share.
The firm reported $11.7 million in R&D spending for the quarter, up 8 percent from $10.8 million a year ago. SG&A expenses rose 12 percent to $13.1 million from $11.7 million a year ago.
For the full year, revenues were $2.9 million, up from $765,000 in 2022.
Singular's net loss for the year totaled $94.8 million, or $1.30 per share, compared to a loss of $90.9 million, or $1.28 per share, in 2022.
The firm reported $47.8 million in 2023 R&D expenses, up 3 percent from $46.2 million a year ago. SG&A expenses were $54.5 million, up 15 percent from $47.3 million in the prior year. Increased operating expenses were driven by headcount and infrastructure to support growth, including the G4 commercial launch.
As of Dec. 31, Singular had $16.2 million in cash and cash equivalents and $157.7 million in short-term investments.
In Tuesday morning trading on the Nasdaq, shares of Singular were down 2 percent at $.54.