Completed recent IPO raising $23.7 million in gross proceeds
23% increase in product revenue for the first nine months of 2018
SAN DIEGO, Nov. 07, 2018 (GLOBE NEWSWIRE) -- Bionano Genomics, Inc. (NASDAQ: BNGO), a life sciences instrumentation company that develops and markets Saphyr, a platform for ultra-sensitive and ultra-specific structural variation detection in genome analysis, today announced financial results for the three and nine months ended September 30, 2018.
Recent Accomplishments and Business Highlights
- Completed an Initial Public Offering in August 2018, raising $23.7 million of gross proceeds (including the exercise of the underwriters’ over-allotment option) before underwriting discounts and commissions and other offering expenses
- Expanded its global commercialization presence with the addition of key senior executives, including a head of commercial operations and a seasoned sales team in China
- Announced a new platform, through collaboration with Genoox, that seamlessly combines next-generation sequencing (NGS) data with structural variant calls, allowing for the potential to enhance research in the area of rare diseases
- Reached over 140 papers published in peer-reviewed journals that collectively validates Saphyr technology as industry-leading
- Presented a record number of posters at American Society of Human Genetics (ASHG) demonstrating critical structural variants identified with Saphyr
“With the completion of our IPO this August, we are excited to set the stage for the next evolution in the Bionano story,” said Erik Holmlin, Ph.D., CEO of Bionano. “We are seeing increasing interest in our Saphyr system, as our differentiated capabilities, including long-read and structural variant data continues to drive demand. Additionally, we continue to innovate and improve our systems, increasing our Saphyr instrument sample throughput and ease of use, also helping to drive interest and adoption. We look forward to placing additional systems as we execute upon our strategy.”
Third Quarter 2018 Financial Results
Total Revenue. Total revenue for the third quarter of 2018 was $2.8 million compared to $2.7 million for the same period last year, an increase of 3%.
Product Revenue. Product revenue for the third quarter of 2018 was $2.7 million compared to $2.6 million in the third quarter of 2017, an increase of 4%.
Cost of Revenues. Cost of revenues for the third quarter of 2018 was $3.1 million compared to $1.7 million for the same period last year. The cost of revenue was meaningfully higher during the third quarter of 2018 due in part to a $1.3 million write-off of inventory of Irys, Bionano’s prior-generation instrument. None of this inventory write-off is applicable to the inventory of Saphyr, the only instrument that Bionano sells today. Excluding the $1.3 million inventory write-off, cost of revenues for the third quarter of 2018 would be $1.8 million.
Operating Expenses. Operating expenses for the third quarter of 2018 were $5.7 million compared to $6.1 million in the same period last year, a decrease of 6%. The decrease in operating expense is due in part to the cost-saving initiatives begun late last year.
Operating Loss. Operating loss for the third quarter of 2018 was $6.0 million compared to $5.0 million for the same period last year. Excluding the $1.3 million inventory write-off, operating loss for the third quarter of 2018 would be $4.7 million, a decrease of 7% relative to the same period last year.
Year-to-Date 2018 Financial Results
Total Revenue. Total revenue for the first nine months of 2018 was $8.0 million compared to $6.7 million for the same period last year, an increase of 20%.
Product Revenue. Product revenue for the first nine months of 2018 was $7.6 million compared to $6.2 million for the same period last year, an increase of 23%.
Cost of Revenues. Cost of revenues for the first nine months of 2018 was $5.7 million compared to $4.5 million for the same period last year. Excluding inventory write-offs of $1.3 million in the third quarter of 2018 and $0.4 million in the second quarter of 2017, cost of revenues for the first nine months of 2018 would be $4.4 million compared to $4.1 million for the same period last year.
Operating Expenses. Operating expenses for the first nine months of 2018 were $16.6 million compared to $20.1 million for the same period last year, a decrease of 18%.
Operating Loss. Operating loss for the first nine months of 2018 was $14.3 million compared to $18.0 million for the same period last year. Excluding the inventory write-offs, operating loss for the first nine months of 2018 would be $13.0 million compared to $17.6 million for the same period last year, a decrease of 26%.
Cash and Cash Equivalents Balance on September 30, 2018
The cash and cash equivalents balance on September 30, 2018 was $20.7 million, inclusive of the proceeds from the IPO which includes the exercise of the underwriters’ full overallotment option in August 2018.
Conference Call & Webcast Details
The company will host a conference call and live webcast on Wednesday, November 7, 2018 at 4:30pm Eastern Time to report financial results for the third quarter ended September 30, 2018 and provide a business update. Dial-in details are as follows:
Wednesday, November 7 @ 4:30pm Eastern Time
Domestic: 888-394-8218
International: 323-701-0225
Passcode: 9054397
Webcast (Audio Only): http://public.viavid.com/index.php?id=132057
To access the call, participants should dial the applicable telephone number above at least 10 minutes prior to the start of the call. An archived version of the webcast will be available for replay in the Investors section of the Bionano website until November 21, 2018.
About Bionano Genomics
Bionano is a life sciences instrumentation company in the genome analysis space. Bionano develops and markets the Saphyr system, a platform for ultra-sensitive and ultra-specific structural variation detection that enables researchers and clinicians to accelerate the search for new diagnostics and therapeutic targets and to streamline the study of changes in chromosomes, which is known as cytogenetics. The Saphyr system comprises an instrument, chip consumables, reagents and a suite of data analysis tools.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "plan," "anticipate," "estimate," "intend" and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this news release are based on Bionano’s expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Factors that may cause Bionano’s actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Bionano’s filings with the U.S. Securities and Exchange Commission, including the "Risk Factors" sections contained therein. Except as required by law, Bionano assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.
Contacts
Company Contact:
Mike Ward, CFO
Bionano Genomics, Inc.
+1 (858) 888-7600
mward@bionanogenomics.com
Investor Relations Contact:
Ashley R. Robinson
LifeSci Advisors, LLC
+1 (617) 535-7742
arr@lifesciadvisors.com
Media Contact:
Kirsten Thomas
The Ruth Group
+1 (508) 280-6592
kthomas@theruthgroup.com
-Financial tables follow-
Bionano Genomics, Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Revenues: | |||||||||||||||
| Product revenue | $ | 2,700,162 | $ | 2,604,215 | $ | 7,618,407 | $ | 6,213,496 | |||||||
| Other revenue | 128,542 | 138,841 | 368,791 | 446,424 | |||||||||||
| Total revenue | 2,828,704 | 2,743,056 | 7,987,198 | 6,659,920 | |||||||||||
| Cost of revenue: | |||||||||||||||
| Cost of product revenue | 3,064,661 | 1,643,504 | 5,708,704 | 4,462,365 | |||||||||||
| Cost of other revenue | 3,671 | 46,719 | 14,507 | 71,975 | |||||||||||
| Total cost of revenue | 3,068,332 | 1,690,223 | 5,723,211 | 4,534,340 | |||||||||||
| Operating expense: | |||||||||||||||
| Research and development | 2,505,137 | 2,967,073 | 6,962,696 | 9,551,687 | |||||||||||
| Selling, general and administrative | 3,224,075 | 3,116,922 | 9,617,814 | 10,553,348 | |||||||||||
| Total operating expense | 5,729,212 | 6,083,995 | 16,580,510 | 20,105,035 | |||||||||||
| Loss from operations | (5,968,840 | ) | (5,031,162 | ) | (14,316,523 | ) | (17,979,455 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (404,437 | ) | (145,308 | ) | (1,114,053 | ) | (431,403 | ) | |||||||
| Change in fair value of preferred stock warrants and expirations | 1,520,159 | 154,469 | 3,991,081 | 1,108,362 | |||||||||||
| Other expense | (75,957 | ) | (68,189 | ) | (639,137 | ) | (125,324 | ) | |||||||
| Total other income (expense) | 1,039,765 | (59,028 | ) | 2,237,891 | 551,635 | ||||||||||
| Loss before income taxes | (4,929,075 | ) | (5,090,190 | ) | (12,078,632 | ) | (17,427,820 | ) | |||||||
| Benefit (provision) for income taxes | 2,978 | 4,738 | (6,304 | ) | (17,620 | ) | |||||||||
| Net loss | $ | (4,926,096 | ) | $ | (5,085,452 | ) | $ | (12,084,936 | ) | $ | (17,445,440 | ) | |||
Bionano Genomics, Inc.
Condensed Balance Sheets
| September 30, 2018 | December 31, 2017 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 20,657,038 | $ | 1,021,897 | ||
| Accounts receivable, net | 4,000,924 | 3,352,214 | ||||
| Inventory | 2,614,812 | 1,693,742 | ||||
| Prepaid expenses and other current assets | 1,347,774 | 1,071,512 | ||||
| Total current assets | 28,620,548 | 7,139,365 | ||||
| Property and equipment, net | 2,049,256 | 3,005,788 | ||||
| Total assets | $ | 30,669,804 | $ | 10,145,153 | ||
| Liabilities and stockholders’ equity (deficit) | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 2,363,752 | $ | 2,302,964 | ||
| Accrued expenses | 2,815,290 | 3,508,894 | ||||
| Deferred revenue | 335,604 | 211,697 | ||||
| Preferred stock warrant liability | - | 3,898,944 | ||||
| Current portion of long-term debt | - | 6,729,752 | ||||
| Total current liabilities | 5,514,646 | 16,652,251 | ||||
| Long-term debt, net of current portion | 9,008,337 | - | ||||
| Long-term deferred revenue | 144,602 | 142,929 | ||||
| Other non-current liabilities | 767,197 | 567,047 | ||||
| Total liabilities | 15,434,782 | 17,362,227 | ||||
| Total stockholders’ equity (deficit) | 15,235,022 | (7,217,074 | ) | |||
| Total liabilities and stockholders’ equity (deficit) | $ | 30,669,804 | $ | 10,145,153 | ||