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GPS Cancer – Highlights
“We continue to make excellent progress on a number of operational
fronts,” said
Software and Services Highlights:
“We reported a strong fourth quarter with revenues increasing on a
reduced cost base. Importantly, our SaaS business continues to grow and
generate healthy gross margins,” said
Business and Financial Highlights
For the 2017 fourth quarter, total net revenue increased 25% to
Financial results for the 2017 fourth quarter included approximately
For the 2017 full year, total net revenue increased 8% to
Financial results for the 2017 full year included approximately
Conference Call Information and Forward-Looking Statements
Later today, the company will host a conference call at
Discussion during the conference call may include forward-looking statements regarding topics such as the company’s financial status and performance, regulatory and operational developments, and other comments the company may make about its future plans or prospects in response to questions from participants on the conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures,
including adjusted net loss and adjusted net loss per share, which are
financial measures that are not prepared in conformity with
About
About GPS Cancer™
GPS Cancer™ is a unique, comprehensive test available through
GPS Cancer integrates whole genome (DNA) sequencing,
whole transcriptome (RNA) sequencing, and quantitative proteomics
through mass spectrometry, providing oncologists with a comprehensive
molecular profile of a patient’s cancer to inform personalized treatment
strategies. GPS Cancer testing is conducted in CLIA-certified and
CAP-accredited laboratories, and is a key enabler for Cancer
Breakthroughs 2020, the world’s most comprehensive cancer collaborative
initiative seeking to accelerate the potential of combination
immunotherapy as the next generation standard of care in cancer
patients. For more information, visit www.gpscancer.com and
www.cancerbreakthroughs2020.org.
This news release contains certain statements of a forward-looking
nature relating to future events or future business performance. Forward-looking
statements can be identified by the words “expects,” “anticipates,”
“believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and
similar expressions. Forward-looking statements are based on
management’s current plans, estimates, assumptions and projections, and
speak only as of the date they are made. Risks and uncertainties
include, but are not limited to: our ability to successfully integrate a
complex learning system to address a wide range of healthcare issues;
our ability to successfully amass the requisite data to achieve maximum
network effects; appropriately allocating financial and human resources
across a broad array of product and service offerings; raising
additional capital as necessary to fund our operations; achieving
significant commercial market acceptance for our sequencing and
molecular analysis solutions; establish relationships with, key thought
leaders or payers’ key decision makers in order to establish GPS Cancer
as a standard of care for patients with cancer; our ability to grow the
market for our Systems Infrastructure, and applications; successfully
enhancing our Systems Infrastructure and applications to achieve market
acceptance and keep pace with technological developments; customer
concentration; competition; security breaches; bandwidth limitations;
our ability to continue our relationship with
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Consolidated Balance Sheets | |||||||
(Dollars in thousands, except per share amounts) | |||||||
|
|||||||
2017 | 2016 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 61,660 | $ | 157,573 | |||
Accounts receivable, net | 11,491 | 11,673 | |||||
Inventories | 839 | 1,685 | |||||
Deferred implementation costs | 1,960 | 606 | |||||
Related party receivables, net | 585 | 693 | |||||
Prepaid expenses and other current assets | 5,358 | 3,356 | |||||
Current assets of discontinued operations | - | 9,992 | |||||
Total current assets | 81,893 | 185,578 | |||||
Property, plant, and equipment, net | 18,517 | 20,129 | |||||
Deferred implementation costs, net of current | 3,951 | 3,201 | |||||
|
114,625 | 114,625 | |||||
Intangible assets, net | 69,424 | 78,812 | |||||
Investment in related party | 156,863 | 207,197 | |||||
Related party receivable, net of current | 1,727 | 1,971 | |||||
Other assets | 2,195 | 2,195 | |||||
Noncurrent assets of discontinued operations | - | 70,683 | |||||
Total assets | $ | 449,195 | $ | 684,391 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,164 | $ | 6,039 | |||
Accrued and other current liabilities | 18,134 | 20,032 | |||||
Deferred revenue | 10,057 | 9,600 | |||||
Related party payables, net | 4,504 | 8,082 | |||||
Current liabilities of discontinued operations | - | 13,496 | |||||
Total current liabilities | 35,859 | 57,249 | |||||
Deferred revenue, net of current | 7,126 | 11,127 | |||||
Related party liabilities | 11,500 | 5,612 | |||||
Related party promissory note | 112,666 | 112,666 | |||||
Related party convertible note, net | 7,947 | 7,564 | |||||
Convertible notes, net | 74,845 | 70,810 | |||||
Other liabilities | 5,950 | 820 | |||||
Noncurrent liabilities of discontinued operations | - | 6,949 | |||||
Total liabilities | 255,893 | 272,797 | |||||
Stockholders' equity | |||||||
Common stock, |
10 | 12 | |||||
Additional paid-in capital | 886,669 | 886,334 | |||||
Accumulated deficit | (693,233 | ) | (475,273 | ) | |||
Accumulated other comprehensive (loss) income | (144 | ) | 521 | ||||
Total stockholders' equity | 193,302 | 411,594 | |||||
Total liabilities and stockholders' equity | $ | 449,195 | $ | 684,391 | |||
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||||||||||||||||
Consolidated and Combined Statements of Operations |
||||||||||||||||
(Dollars in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended
|
Year Ended |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Unaudited) | ||||||||||||||||
Total net revenue | $ | 22,298 | $ | 17,846 | $ | 86,676 | $ | 80,404 | ||||||||
Total cost of revenue | 8,880 | 10,893 | 41,522 | 44,107 | ||||||||||||
Gross profit | 13,418 | 6,953 | 45,154 | 36,297 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Selling, general and administrative | 20,795 | 16,398 | 74,976 | 105,258 | ||||||||||||
Research and development | 8,811 | 10,792 | 33,862 | 47,310 | ||||||||||||
Amortization of acquisition-related assets | 1,054 | 1,055 | 4,216 | 4,217 | ||||||||||||
Total operating expenses | 30,660 | 28,245 | 113,054 | 156,785 | ||||||||||||
Loss from operations | (17,242 | ) | (21,292 | ) | (67,900 | ) | (120,488 | ) | ||||||||
Interest expense, net | (4,119 | ) | (1,669 | ) | (16,168 | ) | (6,429 | ) | ||||||||
Other income, net | 492 | 3,052 | 800 | 3,593 | ||||||||||||
Loss from related party equity method investment including impairment loss | (3,981 | ) | (33,101 | ) | (50,334 | ) | (40,994 | ) | ||||||||
Loss from continuing operations before income taxes | (24,850 | ) | (53,010 | ) | (133,602 | ) | (164,318 | ) | ||||||||
Provision for (benefit from) income taxes | (2,288 | ) | (4,594 | ) | (2,203 | ) | (23,797 | ) | ||||||||
Net loss from continuing operations | (22,562 | ) | (48,416 | ) | (131,399 | ) | (140,521 | ) | ||||||||
Loss from discontinued operations, net of tax | 928 | (11,535 | ) | (43,812 | ) | (43,581 | ) | |||||||||
Net loss | $ | (21,634 | ) | $ | (59,951 | ) | $ | (175,211 | ) | $ | (184,102 | ) | ||||
Basic and diluted net income (loss) per share (1): | ||||||||||||||||
Continued operations - common stock | $ | (0.21 | ) | $ | (0.40 | ) | $ | (1.12 | ) | $ | (1.30 | ) | ||||
Discontinued operations - common stock | $ | 0.01 | $ | (0.09 | ) | $ | (0.37 | ) | $ | (0.39 | ) | |||||
Total net loss per common stock | $ | (0.20 | ) | $ | (0.49 | ) | $ | (1.49 | ) | $ | (1.69 | ) | ||||
Basic and diluted net income per redeemable common stock | N/A | N/A | N/A | $ | 0.99 | |||||||||||
Weighted average shares outstanding (1): | ||||||||||||||||
Basic and diluted - common stock | 107,810,546 | 121,242,627 | 116,737,860 | 111,600,650 | ||||||||||||
Basic and diluted - redeemable common stock | N/A | N/A | N/A | 5,005,855 | ||||||||||||
(1) |
The net income (loss) per share and weighted average shares
outstanding have been computed to give effect to the LLC
conversion that occurred on
The net loss per common share for the years ended |
|
|
|||||||||||
Supplemental Revenue Schedule | |||||||||||
(Dollars in thousands) | |||||||||||
Three Months Ended
|
Year Ended |
||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
(Unaudited) | |||||||||||
Revenue: | |||||||||||
Software-as-a-service | $ | 15,844 | $ | 14,401 | $ | 60,707 | $ | 56,210 | |||
Software and hardware | 1,685 | 673 | 6,093 | 6,750 | |||||||
Total software-related revenue |
17,529 | 15,074 | 66,800 | 62,960 | |||||||
Maintenance | 2,239 | 2,110 | 10,421 | 9,089 | |||||||
Sequencing and molecular analysis | 569 | 482 | 2,554 | 604 | |||||||
Other services | 1,961 | 180 | 6,901 | 7,751 | |||||||
Total net revenue | $ | 22,298 | $ | 17,846 | $ | 86,676 | $ | 80,404 | |||
Cost of Revenue: | |||||||||||
Software-as-a-service | $ | 4,652 | $ | 5,092 | $ | 21,795 | $ | 19,883 | |||
Software and hardware | 64 | 148 | 660 | 816 | |||||||
Total software-related cost of revenue | 4,716 | 5,240 | 22,455 | 20,699 | |||||||
Maintenance | 185 | 177 | 748 | 798 | |||||||
Sequencing and molecular analysis | 1,222 | 1,058 | 6,029 | 1,987 | |||||||
Other services | 1,614 | 2,822 | 7,118 | 12,131 | |||||||
Amortization of developed technologies | 1,143 | 1,596 | 5,172 | 8,492 | |||||||
Total cost of revenue | $ | 8,880 | $ | 10,893 | $ | 41,522 | $ | 44,107 | |||
|
|||||||||||||||
Non-GAAP Net Loss and Non-GAAP Net Loss Per Share | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Three Months Ended
|
Year Ended |
||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Net loss from continuing operations | $ | (22,562 | ) | $ | (48,416 | ) | $ | (131,399 | ) | $ | (140,521 | ) | |||
Adjustments to GAAP net loss: | |||||||||||||||
Corporate restructuring from continuing operations (3) | 17 | 246 | 2,422 | 2,544 | |||||||||||
Acquisition related compensation expense | - | - | - | 4,814 | |||||||||||
Acquisition related sales incentive | 671 | 939 | 2,732 | 2,966 | |||||||||||
Intangible amortization from continuing operations | 2,197 | 2,651 | 9,388 | 12,709 | |||||||||||
Loss from related party equity method investment including impairment loss | 3,981 | 33,101 | 50,334 | 40,994 | |||||||||||
Non-cash interest expense related to convertible notes | 1,157 | 108 | 4,417 | 108 | |||||||||||
Change in fair value of derivatives liability | (19 | ) | (1,228 | ) | (264 | ) | (1,228 | ) | |||||||
Stock-based compensation expense from continuing operations | 8,586 | 3,599 | 8,102 | 44,048 | |||||||||||
BP settlement | - | (842 | ) | - | (842 | ) | |||||||||
Securities litigation costs | 92 | - | 777 | - | |||||||||||
The impact of intangible amortization, impact of the "Tax Act" of 2017, and the conversion from a limited liability company to a corporation on provision for (benefit from) income taxes | (1,909 | ) | (4,509 | ) | (1,796 | ) | (23,797 | ) | |||||||
Total adjustments to GAAP net loss from continuing operations | 14,773 | 34,065 | 76,112 | 82,316 | |||||||||||
Net loss - Non-GAAP from continuing operations | $ | (7,789 | ) | $ | (14,351 | ) | $ | (55,287 | ) | $ | (58,205 | ) | |||
Weighted average shares outstanding (1) | 107,810,546 | 121,242,627 | 116,737,860 | 111,600,650 | |||||||||||
Weighted average Series F/redeemable stock (1) (2) | — | — | — | 5,005,855 | |||||||||||
Shares outstanding - Non-GAAP (1) | 107,810,546 | 121,242,627 | 116,737,860 | 116,606,505 | |||||||||||
Net loss per share from continuing operations - Non-GAAP (1) | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.47 | ) | $ | (0.50 | ) | |||
Reconciliation of Net Loss per Common Share to Net Loss per Common Share - Non-GAAP: |
|||||||||||||||
Three Months Ended
|
Year Ended |
||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
Net loss per common share from continuing operations - GAAP | $ | (0.21 | ) | $ | (0.40 | ) | $ | (1.12 | ) | $ | (1.30 | ) | |||
Adjustments to GAAP net loss per common share from continuing operations: | |||||||||||||||
Corporate restructuring from continuing operations (3) | — | — | 0.02 | 0.02 | |||||||||||
Acquisition related compensation expense | — | — | — | 0.04 | |||||||||||
Acquisition related sales incentive | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
Intangible amortization from continuing operations | 0.02 | 0.03 | 0.08 | 0.12 | |||||||||||
Loss from related party equity method investment including impairment loss | 0.04 | 0.27 | 0.43 | 0.37 | |||||||||||
Non-cash interest expense related to convertible notes | 0.01 | — | 0.04 | — | |||||||||||
Change in fair value of derivatives liability | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Stock-based compensation expense from continuing operations | 0.08 | 0.03 | 0.07 | 0.39 | |||||||||||
BP settlement | — | (0.01 | ) | — | (0.01 | ) | |||||||||
Securities litigation costs | — | — | 0.01 | — | |||||||||||
The impact of intangible amortization, impact of the "Tax Act" of 2017, and the conversion from a limited liability company to a corporation on provision for (benefit from) income taxes | (0.02 | ) | (0.04 | ) | (0.02 | ) | (0.21 | ) | |||||||
Accretion to redemption value of Series F/redeemable common stock | — | — | — | 0.04 | |||||||||||
Dilution from Series F/redeemable common stock | — | — | — | 0.02 | |||||||||||
Total adjustments to GAAP net loss per common share from continuing operations | 0.14 | 0.28 | 0.65 | 0.80 | |||||||||||
Net loss per common share from continuing operations - Non-GAAP (1) | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.47 | ) | $ | (0.50 | ) |
(1) |
The net loss per common share from continuing operations - non-GAAP,
weighted-average shares outstanding, weighted average Series F
units/redeemable stock and shares outstanding - non-GAAP, have been
computed to give effect to the LLC conversion that occurred |
|
(2) |
The weighted-average shares outstanding have been further adjusted
to account for the redeemable Series F units (converted to common
stock in conjunction with the LLC conversion), whose put right
expired on |
|
(3) |
Corporate restructuring includes accrued bonus reversal of |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180314006114/en/
Investor Contact:
rjaffe@rjaffeco.com
Source: