Stock in Action: NanoString Technologies, Inc. (NASDAQ-NSTG)

On Tuesday 21 May, NanoString Technologies, Inc. (NASDAQ-NSTG) shares price traded between $26.89 and $27.69 during the last trading session upbeat/downbeat with +0.63% at $26.97. The shares recorded a trading volume 183,057 million shares as compared to its average volume of 586,487 shares. The company has 35.05M shares outstanding and market value of 945.269M. Over the one year trading period, the stock has a peak price of $31.14 and its down is recorded at $11.12.

NanoString Technologies, Inc. (NSTG) recently stated financial results for the fourth quarter and year ended December 31, 2018.

Fourth Quarter Financial Highlights

  • Product and service revenue of $23.6M, 12% year-over-year growth
  • Consumables revenue of $15.3M, including $2.2M of Prosigna® IVD kits, 15% year-over-year growth
  • Instrument revenue of $5.9M, 1% year-over-year decline
  • Service revenue of $2.5M, 36% year-over-year growth
  • Alliance revenue recognized of $6.4M and cash received from collaborators of $3.8M

Full Year 2018 Financial Highlights

  • Product and service revenue of $83.5M, 16% year-over-year growth
  • Consumables revenue of $53.3M, including $9.4M of Prosigna IVD kits, 18% year-over-year growth
  • Instrument revenue of $21.4M, 3% year-over-year growth
  • Service revenue of $8.8M, 44% year-over-year growth
  • Alliance revenue of $23.2M and cash received from collaborators of $23.6M

Fourth Quarter Financial Results

Product and service revenue for the three months ended December 31, 2018 raised by 12% to $23.6M contrast to $21.0M for the three months ended December 31, 2017. Instrument revenue was $5.9M, a reduction of 1% contrast to the previous year period. Consumables revenue, not including Prosigna, was $13.1M, an raise of 14% contrast to the previous year period, with growth driven primarily by sales of our panel products. Prosigna IVD kit revenue was $2.2M, an raise of 24% contrast to the previous year period, as more testing laboratories commenced providing services and testing volumes raised, most importantly in territories outside of the United States. Service revenue was $2.5M, an raise of 36% contrast to the previous year period, reflecting raised service contracts associated with our growing installed base of nCounter instruments, as well as demand for our GeoMx DSP Technology Access Program. Gross margin on product and service revenue was 54% contrast to 56% in the previous year period, reflecting a greater mix of SPRINT as a percentage of instrument sales in the current quarter.

Alliance revenue totaled $6.4M, contrast to $14.2M for the previous year period, and was derived primarily from our collaborations with Lam Research and Celgene Corporation. The previous year period included, in addition to revenue derived from our Lam and Celgene collaborations, the accelerated recognition of $11.6M of deferred revenue related to our Merck alliance as a result of Merck electing not to pursue a PMA filing for the companion diagnostic under development. Cash received from collaborators totaled $3.8M, primarily reflecting predictable activity relating to our alliance with Lam Research.

Full Year 2018 Financial Results

Product and service revenue for 2018 raised by 16.0% to $83.5M contrast to $72.0M for 2017. Instrument revenue was $21.4M, an raise of 3% contrast to the previous year. Consumables revenue, not including Prosigna, was $43.8M for 2018, an raise of 14% contrast to the previous year. Prosigna IVD kit revenue was $9.4M, an raise of 40% contrast to the previous year. Service revenue was $8.8M, an raise of 44% contrast to the previous year. Alliance revenue totaled $23.2M and cash received from collaborators was $23.6M, contrast to $42.9M and $22.7M, respectively, for the previous year. Gross margin on product and service revenue was 57% contrast to 56% in 2017.

Research and development expense raised by 31% to $61.6M as contrast to $46.9M for the previous year.  Selling, general and administrative expense raised by 5% to $78.2M contrast to $74.3M for the previous year.

Net loss for 2018 was $77.4M, or $2.78 per share contrast with $43.6M, or a loss of $1.84 per share for the previous year.

The company ended 2018 with about $94.0M of cash, cash equivalents, and short-term investments.

NSTG net profit margin of the firm was recorded at -71.90% and operating profit margin was calculated at -64.70% while gross profit margin was measured as 66.50%. Beta factor, which measures the riskiness of the security, was registered at 1.28.

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