Accelerate Diagnostics Reports Second Quarter 2021 Financial Results

TUCSON, Ariz., Aug. 5, 2021

"Second quarter and year to date financial results were consistent with our expectations," commented Jack Phillips, Chief Executive Officer of Accelerate Diagnostics, Inc. "We also launched our AST focused test kit, concluded our multi-hospital registry study with compelling new data, and advanced other key commercial and product development priorities during the quarter."

Second Quarter 2021 Highlights

• Added 15 contracted instruments and brought 24 instruments live in the U.S. in the quarter.
• Ended the second quarter with 298 U.S. clinically live and revenue-generating instruments, with another 102 U.S. contracted instruments in the process of being implemented and not yet revenue-generating.
• Net sales were $2.8 million, compared to $2.1 million in the second quarter of 2020, or an 32% increase. Instrument revenue remained consistent while consumable revenue grew by 35%.
• Gross margin was 38% for the quarter, compared to 45% in the second quarter of 2020. The decline in gross margins resulted from inflation to manufacturing costs and other factors.
• Selling, general, and administrative (SG&A) costs for the quarter were $12.9 million, compared to $11.3 million from the same quarter of the prior year. SG&A costs for the quarter excluding non-cash stock-based compensation were $7.7 million, compared to $8.3 million from the same quarter of the prior year. This decrease was the result of the ongoing benefits from cost-cutting efforts put in place during 2020. 
• Research and development (R&D) costs for the quarter were $5.7 million, compared to $5.4 million from the same quarter of the prior year. R&D costs excluding non-cash stock-based compensation expense for the quarter were $4.4 million, compared to $5.0 million from the quarter of the prior year. This decrease was the result of improved internal efficiencies and lower external study-related costs. 
• Net loss was $21.7 million in the second quarter, resulting in $0.36 net loss per share. Net loss excluding non-cash stock-based compensation expense for the second quarter was $15.1 million.
• Net cash used in the quarter excluding financing was $9.3 million

Year-to-date 2021 Highlights

• Net sales were $5.3 million year-to-date, compared to $4.5 million from the same period of 2020, or an 18% increase. Instrument revenue remained constant while consumable revenue grew by 24%.
• Gross margin was 37% year-to-date, compared to 45% from the same period in 2020. The decline in gross margins resulted from ongoing pandemic-related impacts to manufacturing costs and other factors.
• Selling, general, and administrative (SG&A) costs year-to-date were $26.9 million, compared to $24.3 million from the same period of the prior year. SG&A costs excluding non-cash stock-based compensation were $15.8 million year to date, compared to $18.2 million from the same period of the prior year. This decrease was the result of the ongoing benefits from cost-cutting efforts put in place during 2020. 
• Research and development (R&D) costs were $12.6 million year to date, compared to $11.2 million from the same period of the prior year. R&D costs excluding non-cash stock-based compensation expense were $8.6 million year to date, compared to $9.7 million from the same period of the prior year. This decrease was the result of improved internal efficiencies and lower external study-related costs. 
• Net loss was $45.9 million year to date, resulting in $0.77 net loss per share. Net loss excluding non-cash stock-based compensation expense was $30.5 million.
• Net cash used excluding financing was $21.6 million
• Closed on two of three equal $10.7 million tranches of previously announced insider financing for $21.4 million.
• Closed a single transaction of $0.8 million against our ATM financing vehicle.
• Ended the quarter with total cash, investments, and cash equivalents of $68.8 million.

Full financial results for the quarter ending June 30, 2021 will be filed on Form 10-Q through the Securities and Exchange Commission's (SEC) website at http://www.sec.gov.

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