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Nanosphere Q1 Revenues Improve 38 Percent

NEW YORK (GenomeWeb) – Nanosphere today reported a 38 percent jump in its first quarter revenues, but fell short of the consensus Wall Street estimates on the top and bottom lines.

For the three months ended March 31, Nanosphere said that revenues increased to $3.3 million from $2.4 million on 56 percent growth in consumables sales. The company failed to meet the average analyst estimate of $3.7 million.

It had 48 new placements of the Verigene System during the first quarter and reaffirmed prior guidance of 200 new placements for full-year 2014.

"We continue to see adoption of our Verigene System across the full spectrum of microbiology labs from community-based to regional integrated delivery networks to academic medical centers," Nanosphere President and CEO Michael McGarrity said in a statement. "Our expanding menu will continue to drive broader market penetration and accelerate revenue growth."

During the quarter, the US Food and Drug Administration cleared the company's 14-target Verigene Gram-Negative Blood Culture Test, which detects gram-negative bacteria that cause bloodstream infections. It also submitted an application to the agency for the Verigene Enteric Pathogens Test, designed to help hospitals more efficiently and cost effectively diagnose patients with community-acquired diarrhea.

The Northbrook, Ill.-based company's net loss rose to $10.0 million, or $.13 per share, in the first quarter from a net loss of $8.5 million, or $.15 per share, a year ago and fell short of the average analyst estimate of $.12 per share.

It increased its R&D spending 4 percent year over year to $5.2 million from $5.0 million and its SG&A spending 27 percent to $5.6 million from $4.4 million. SG&A costs rose as Nanosphere expanded its sales and customer support operations, it said.

Cash and cash equivalents were $33.0 million at the end of the quarter. In March, it announced a deal to sell up to $30 million of shares of its common stock to investment fund Aspire Capital.

The company reaffirmed guidance of between $19 million and $21 million in revenues for full-year 2014.