NEW YORK – Accelerate Diagnostics reported on Monday that its preliminary fourth quarter revenues rose 94 percent but still fell short of the company's expectations.
For the quarter ended December 30, 2019 Accelerate Diagnostics expects total revenues of $3.5 million, up from $1.8 million in the year-ago quarter. For the full year, total revenue is expected to be $9.3 million, up 63 percent compared to its full-year 2018 revenues of $5.7 million.
The analysts' average estimates were for Q4 revenues of $4.8 million and for full-year revenues of $10.7 million.
The Tucson, Arizona-based company said that it had 137 commercially contracted Pheno instruments in the fourth quarter, and 304 for full-year 2019, within range of the lower end — or 300 to 400 placements — of the firm's targeted placements in 2019 that it guided to earlier.
Despite the sharp year-over-year uptick in Q4 revenues, incoming CEO Jack Phillips said that its still failed to meet expectations. He attributed the shortfall to continued delays of multisite contracted customers going clinically live, delaying their generating consumables revenue. The firm has previously cited delays in getting its instruments up and running in labs as the reason for slower than expected revenue growth.
Nonetheless, Phillips said in a statement that Accelerate is "pleased with our overall placement trajectory after doubling our contracted Phenos in 2019 and we remain confident in our outlook for continued strong adoption in 2020."
The firm's CEO transition was announced last month. Phillips will be replacing current CEO Larry Mehren on February 1, 2020.
Net cash used is expected to be approximately $58 million for full-year 2019, the firm said, resulting in cash on hand of $109 million.
Accelerate Diagnostics' shares fell more than 2 percent to $17.94 in morning trading on the Nasdaq.