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“We had an excellent start to fiscal 2019,” said
Software and Services Highlights:
Business and Financial Highlights
For the 2019 first quarter, total net revenue was
Financial results for the first quarter of 2019 included non-cash
charges for loss from related party equity method investment and
For the 2019 first quarter, on a non-GAAP basis, adjusted net loss from
continuing operations was
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
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
and Liquid GPS 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
|
|||||||||
Condensed Consolidated Balance Sheets | |||||||||
(Dollars in thousands) | |||||||||
2019 |
2018 |
||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 12,444 | $ | 18,305 | |||||
Accounts receivable, net | 15,288 | 15,286 | |||||||
Inventories | 416 | 496 | |||||||
Related party receivables, net | 735 | 1,007 | |||||||
Prepaid expenses and other current assets | 5,264 | 4,350 | |||||||
Total current assets |
34,147 | 39,444 | |||||||
Property, plant, and equipment, net | 20,673 | 22,978 | |||||||
|
115,930 | 115,930 | |||||||
Intangible assets, net | 62,416 | 64,703 | |||||||
Investment in related party | 37,810 | 40,000 | |||||||
Related party receivable, net of current | 1,603 | 1,611 | |||||||
Operating lease right-of-use assets | 11,099 | — | |||||||
Other assets | 1,566 | 1,671 | |||||||
Total assets | $ | 285,244 | $ | 286,337 | |||||
Liabilities and Stockholders' Equity (Deficit) | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 2,335 | $ | 1,650 | |||||
Accrued and other current liabilities | 15,293 | 13,832 | |||||||
Deferred revenue | 16,892 | 16,263 | |||||||
Related party payables, net | 4,856 | 4,791 | |||||||
Total current liabilities | 39,376 | 36,536 | |||||||
Deferred revenue, net of current | 7,091 | 6,704 | |||||||
Related party liabilities | 19,313 | 17,708 | |||||||
Related party promissory note | 112,666 | 112,666 | |||||||
Related party convertible note, net | 8,494 | 8,378 | |||||||
Convertible notes, net | 80,674 | 79,433 | |||||||
Operating lease liabilities | 12,404 | — | |||||||
Other liabilities | 21,589 | 22,081 | |||||||
Total liabilities | 301,607 | 283,506 | |||||||
Stockholders' equity (deficit) | |||||||||
Common stock, |
11 | 11 | |||||||
Additional paid-in capital | 887,963 | 887,289 | |||||||
Accumulated deficit | (904,045 | ) | (884,122 | ) | |||||
Accumulated other comprehensive loss | (292 | ) | (347 | ) | |||||
Total stockholders' equity (deficit) | (16,363 | ) | 2,831 | ||||||
Total liabilities and stockholders' equity (deficit) | $ | 285,244 | $ | 286,337 | |||||
|
||||||||
Condensed Consolidated Statements of Operations | ||||||||
(Dollars in thousands, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three Months Ended
|
||||||||
2019 | 2018 | |||||||
Total net revenue | $ | 23,729 | $ | 22,263 | ||||
Total cost of revenue | 11,290 | 11,068 | ||||||
Gross Profit | 12,439 | 11,195 | ||||||
Operating Expenses: | ||||||||
Selling, general and administrative | 16,789 | 20,737 | ||||||
Research and development | 5,080 | 5,151 | ||||||
Amortization of acquisition-related assets | 1,054 | 1,054 | ||||||
Total operating expenses | 22,923 | 26,942 | ||||||
Loss from operations | (10,484 | ) | (15,747 | ) | ||||
Interest expense, net | (4,414 | ) | (4,197 | ) | ||||
Other (expense) income, net | (2,505 | ) | 180 | |||||
Loss from related party equity method investment | (2,210 | ) | (3,261 | ) | ||||
Loss from continuing operations before income taxes | (19,613 | ) | (23,025 | ) | ||||
Provision for (benefit from) income taxes | 226 | (1,050 | ) | |||||
Net loss from continuing operations | (19,839 | ) | (21,975 | ) | ||||
Loss from discontinued operations, net of tax | (84 | ) | (193 | ) | ||||
Net loss | $ | (19,923 | ) | $ | (22,168 | ) | ||
Net loss per share: | ||||||||
Continuing operations | ||||||||
Basic and diluted - common stock | $ | (0.18 | ) | $ | (0.20 | ) | ||
Discontinued operations | ||||||||
Basic and diluted - common stock | $ | — | $ | — | ||||
Total net loss per share | ||||||||
Basic and diluted - common stock | $ | (0.18 | ) | $ | (0.20 | ) | ||
Weighted average shares outstanding: | ||||||||
Basic and diluted - common stock | 109,904,336 | 108,579,271 | ||||||
|
||||||
Supplemental Revenue Schedule | ||||||
(Dollars in thousands) | ||||||
(Unaudited) | ||||||
Three Months Ended
|
||||||
2019 | 2018 | |||||
Revenue: | ||||||
Software-as-a-service related | $ | 17,802 | $ | 16,166 | ||
Software and hardware related | 1,027 | 1,455 | ||||
Maintenance | 2,493 | 2,446 | ||||
Total software-related revenue | 21,322 | 20,067 | ||||
Sequencing and molecular analysis | 814 | 840 | ||||
Home health care services | 1,593 | 1,356 | ||||
Total net revenue | $ | 23,729 | $ | 22,263 | ||
Cost of Revenue: | ||||||
Software-as-a-service related | $ | 5,752 | $ | 6,602 | ||
Software and hardware related | 785 | 885 | ||||
Maintenance | 270 | 215 | ||||
Amortization of developed technologies | 1,233 | 1,173 | ||||
Total software-related cost of revenue | 8,040 | 8,875 | ||||
Sequencing and molecular analysis | 2,427 | 1,431 | ||||
Home health care services | 823 | 762 | ||||
Total cost of revenue | $ | 11,290 | $ | 11,068 | ||
|
||||||||
Non-GAAP Net Loss from Continuing Operations and
Non-GAAP Net Loss Per Share from Continuing Operations |
||||||||
(Dollars in thousands, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three Months Ended
|
||||||||
2019 | 2018 | |||||||
Net loss from continuing operations | $ | (19,839 | ) | $ | (21,975 | ) | ||
Adjustments to GAAP net loss: | ||||||||
Loss from related party equity method investment | 2,210 | 3,261 | ||||||
Stock-based compensation expense from continuing operations | 650 | 2,718 | ||||||
Acquisition related sales incentive | — | 145 | ||||||
Change in fair value of derivatives liability | — | (1 | ) | |||||
Change in fair value of Bookings Commitment | 2,494 | — | ||||||
Noncash interest expense related to convertible notes | 1,357 | 1,194 | ||||||
Intangible amortization from continuing operations | 2,287 | 2,227 | ||||||
Securities litigation costs | — | 73 | ||||||
Tax provision (benefit) resulting from certain noncash tax items | 111 | (1,123 | ) | |||||
Total adjustments to GAAP net loss from continuing operations | 9,109 | 8,494 | ||||||
Net loss - Non-GAAP from continuing operations | $ | (10,730 | ) | $ | (13,481 | ) | ||
Weighted average shares outstanding | 109,904,336 | 108,579,271 | ||||||
Net loss per share from continuing operations - Non-GAAP | $ | (0.10 | ) | $ | (0.12 | ) | ||
Reconciliation of Net Loss from Continuing Operations per Common
Share
to Net Loss per Common Share from Continuing Operations - Non-GAAP (Unaudited): |
||||||||
Three Months Ended
|
||||||||
2019 | 2018 | |||||||
Net loss per common share from continuing operations | $ | (0.18 | ) | $ | (0.20 | ) | ||
Adjustments to GAAP net loss per common share from continuing operations: | ||||||||
Loss from related party equity method investment | 0.02 | 0.03 | ||||||
Stock-based compensation expense from continuing operations | 0.01 | 0.03 | ||||||
Acquisition related sales incentive | — | — | ||||||
Change in fair value of derivatives liability | — | — | ||||||
Change in fair value of Bookings Commitment | 0.02 | — | ||||||
Noncash interest expense related to convertible notes | 0.01 | 0.01 | ||||||
Intangible amortization from continuing operations | 0.02 | 0.02 | ||||||
Securities litigation costs | — | — | ||||||
Tax provision (benefit) resulting from certain noncash tax items | — | (0.01 | ) | |||||
Total adjustments to GAAP net loss per common share from continuing operations | 0.08 | 0.08 | ||||||
Net loss per common share from continuing operations - Non-GAAP | $ | (0.10 | ) | $ | (0.12 | ) | ||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190509005875/en/
Investor Contact:
rjaffe@rjaffeco.com
424.288.4098
Source: