EX-99.1 3 tm2222818d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

Quanterix Corporation Releases Operating Results for Second Quarter 2022, Announces Business Re-Alignment Plan and Revises 2022 Guidance

 

Billerica, Mass. – August 8, 2022 — Quanterix Corporation (NASDAQ: QTRX), a company expanding the limits of exploration with ultrasensitive biomarker detection, today announced operating results for the three months ended June 30, 2022.

 

Second Quarter 2022 Financial Highlights

 

·Q2 total revenue was $23.5M versus prior year Q2 total revenue of $25.4M, a decrease of 7.4%;

 

·Q2 product revenue was $14.8M versus prior year Q2 product revenue of $18.7M, a decrease of 20.8%;

 

·Q2 service and other revenue was $8.5M versus prior year Q2 service and other revenue of $5.6M, an increase of 51.3%; and

 

·Q2 gross margin was 37.1% versus prior year Q2 gross margin of 54.7%, a reduction of 1,760 bps; Q2 pro-forma gross margin was 28.3% versus prior year Q2 pro-forma gross margin of 47.5%, a reduction of 1,920 bps.

 

For additional information on the pro-forma financial measures included in this press release, please see “Use of Pro-Forma Financial Measures” and “Reconciliation of GAAP to Pro-Forma” below.

 

Second quarter revenues were impacted by a reduction in consumable revenue as the Company addressed assay quality challenges and process improvement initiatives. While these challenges are a near-term headwind to revenue growth, the Company believes underlying market demand for the SIMOA® technology remains robust.

 

The reduction in GAAP gross margin reflects the reallocation of resources, principally headcount, to ongoing quality-related activities, resulting in an increase in cost of goods sold and a corresponding decrease in operating expense. Pro-forma gross margin is adjusted to include the portion of product-related freight and shipping costs that are not billed to the customer. These amounts are included in operating expenses on a GAAP basis. The Company expects to report pro-forma gross margin on a go forward basis. The increases to cost of goods sold described above have a corresponding reduction in operating expense, with no overall change to the Company’s total expenses. The Company believes that including these expenses in cost of goods sold reflects the nature of these expenses and will provide better visibility into the Company’s progress toward its quality process improvement initiatives. Gross margins were also impacted by a decrease in sales of higher-margin consumable products as well as a reduction in overall volume.

 

 

 

 

 

 

Strategic Business Re-Alignment Plan

 

Following a strategic review and top-down assessment of its operations, the Company announced a comprehensive plan that includes restructuring and business re-alignment in order to fully realize the potential of its SIMOA platforms and continue its leadership role in ultrasensitive translational biomarker detection. In connection with these changes, the Company has set in motion an assay redevelopment program with the ultimate objective of improving its ability to manufacture and deliver high-quality assays at scale. The company expects to make initial progress toward this initiative in 2022 and that the program will be completed in 2023. The plan also aligns the Company’s investments to best serve the needs of customers, focus innovation efforts on key platforms and provide the foundation for the Company’s entry into translational pharma and clinical markets, which it believes will be required to access new growth categories. The changes will improve the Company’s cost structure by aligning our expenses with anticipated future revenues. These actions will result in a reduction in force affecting approximately 130 employees across the Company’s world-wide operations. The Company also announced that it is reviewing alternatives with respect to additional facility space that it currently leases in Bedford, Massachusetts.

 

The Company expects to incur restructuring and related charges of approximately $7 million to $10 million in Q3 2022. The Company also expects to realize run-rate savings of approximately $25 million on an annualized basis. The Company is currently unable to estimate facility-related charges.

 

FY2022 Guidance and Long-Term Outlook

 

The Company announced that it now expects its total 2022 revenue to be flat compared to 2021. The Company expects to return to double digit revenue growth by 2024 as the benefits of its restructuring and re-alignment plan are fully realized, and to accelerate at a faster pace once new growth categories are unlocked.

 

“We are taking decisive action to focus and improve the quality and scalability of our products, support our customers and open the door to new growth opportunities,” said Masoud Toloue, President and Chief Executive Officer of Quanterix. “By embarking on this next chapter, we will emerge a stronger company, innovating at a faster pace and well-timed to enable new disease modifying therapies expected to come to market in the coming years.”

 

Conference Call

 

In conjunction with this announcement, Quanterix Corporation will host a conference call on August 8, 2022 at 4:30 p.m. EST. Individuals interested in listening to the conference call may do so by pre-registering here and obtaining a dial-in number and passcode.

 

A live webcast will also be available at: https://edge.media-server.com/mmc/p/3yj49myz. You may also access the live webcast by visiting the News & Events page within the Investors section of the Quanterix website at www.quanterix.com. The webcast will be available on the Company’s website for one year following completion of the call.

 

 

 

 

 

 

Financial Highlights

 

Quanterix Income Statement

 

in '000 USD   Q2 2022    Q2 2021    YTD 2022    YTD 2021 
Product Revenue   14,785    18,676    35,441    36,924 
Service and Other Revenue   8,548    5,648    17,358    12,057 
Collaboration and License Revenue   92    105    178    366 
Development Revenue   75    942    75    3,233 
Total Revenue   23,500    25,371    53,052    52,580 
                     
Cost of Product Revenue   9,921    8,114    20,667    15,594 
Cost of Services Revenue   4,868    3,383    9,115    6,763 
Gross Profit   8,711    13,874    23,270    30,223 
Gross Margin %   37.1%   54.7%   43.9%   57.5%
                     
Research and Development   6,625    6,754    13,659    13,437 
Selling, General and Administrative   27,045    20,788    52,757    40,243 
Total Operating Expenses   33,670    27,542    66,416    53,680 
                     
Loss From Operations   -24,959    -13,668    -43,146    -23,457 
Interest Income (Expense), net   552    -165    604    -328 
Other Expense, net   -358    1,977    -575    1,783 
Tax   -137    -41    62    1 
Net Loss   -24,902    -11,897    -43,055    -22,001 

 

Weighted average outstanding shares was 36.9 million for each of Q2 2022 and YTD 2022.

 

Quanterix Balance Sheet 

 

in '000 USD   At 6/30/22    At 12/31/21 
Cash and Cash Equivalents   361,293    396,465 
Accounts Receivable   19,683    23,786 
Inventory   21,985    22,190 
Prepaid Expenses and Other   10,237    6,514 
Total Current Assets   413,198    448,955 
Restricted Cash   2,594    2,577 
Property and Equipment, Net   22,295    17,960 
Intangible Assets, Net   8,527    10,534 
Goodwill   8,675    9,632 
Right-of-Use Assets   32,935    11,491 
Other Non-Current Assets   377    378 
Total Assets   488,601    501,527 
Accounts Payable & Accrued Expenses   21,420    28,947 
Deferred Revenue   12,157    6,361 
Current Portion of Long Term Debt   0    0 
Lease Liabilities   2,696    1,428 
Other Current Liabilities   396    241 
Total Current Liabilities   36,669    36,977 
Deferred Revenue, Net of Current Portion   1,531    1,099 
Lease Liabilities, Net of Current Portion   43,135    20,464 
Other Non-Current Liabilities   1,810    2,035 
Total Liabilities   83,145    60,575 
           
Total Stockholders’ Equity   405,456    440,952 
           
Total Liabilities and Stockholders’ Equity   488,601    501,527 

 

 

 

 

 

 

Use of Pro-Forma Financial Measures

 

To supplement the Company’s financial statements presented on a GAAP basis, the Company has provided certain pro-forma financial measures, including pro-forma gross profit, pro-forma gross margin percentage, pro-forma operating expenses and pro-forma loss from operations. Management uses these pro-forma measures to evaluate the Company’s operating performance in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. Management believes that such measures are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing the Company’s operating performance. The pro-forma financial information presented here should be considered in conjunction with, and not as a substitute for, the financial information presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these pro-forma measures to their most directly comparable GAAP financial measures set forth below.

 

 

 

 

 

 

Reconciliation of GAAP to Pro Forma

 

Reconciliation of GAAP to Pro Forma                                
(In thousands USD)                                
   2022   2021   2022   2021 
                 
   Three months ended   Six months ended 
   June 30   June 30 
Gross profit   8,711    13,874    23,270    30,223 
Distribution Costs (Note 1)   (2,065)   (1,827)   (3,929)   (3,562)
Pro forma gross profit   6,646    12,047    19,341    26,661 
GAAP gross margin %   37.1%   54.7%   43.9%   57.5%
Pro forma gross margin %   28.3%   47.5%   36.5%   50.7%
                     
GAAP total operating expenses   33,670    27,542    66,416    53,680 
Distribution Costs (Note 1)   (2,065)   (1,827)   (3,929)   (3,562)
Pro forma total operating expenses   31,605    25,715    62,487    50,118 
                     
GAAP loss from operations   (24,959)   (13,668)   (43,146)   (23,457)
Pro forma loss from operations   (24,959)   (13,668)   (43,146)   (23,457)

 

Note 1: Distribution costs, which include freight and other activities costs associated with product shipments, net of charges passed on to the customer, are captured within operating expenses in our consolidated statements of operations. During the three and six months ended June 30, 2022, we incurred $2.1 million and $3.9 million, respectively, of distribution costs recorded within operating expenses. During the three and six months ended June 30, 2021, we incurred $1.8 million and $3.6 million, respectively, of distribution costs recorded within operating expenses.

 

About Quanterix

 

Quanterix is a company that’s expanding the limits of exploration with ultrasensitive biomarker detection. The Company’s digital health solution, Simoa, has the potential to change the way in which healthcare is provided today by giving researchers the ability to closely examine the continuum from health to disease. Quanterix’ technology is designed to enable much earlier disease detection, better prognoses and enhanced treatment methods to improve the quality of life and longevity of the population for generations to come. The technology is currently being used for research applications in several therapeutic areas, including oncology, neurology, cardiology, inflammation and infectious disease. The Company was established in 2007 and is located in Billerica, Massachusetts. For additional information, please visit https://www.quanterix.com.

 

 

 

 

 

 

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. These forward-looking statements include, but are not limited to, statements about Quanterix’ financial performance, including anticipated benefits and costs associated with Quanterix’ plan of restructuring and realignment, and are subject to a number of risks, uncertainties and assumptions. Forward-looking statements in this news release are based on Quanterix’ 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 Quanterix’ actual results to differ from those expressed or implied in the forward-looking statements in this press release include, but are not limited to, those described in Part II, Item 1A, “Risk Factors” and elsewhere in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, and in “Part I, Item 1A, “Risk Factors” in Quanterix’ Annual Report on Form 10-K for the year ended December 31, 2021, or other filings that we make with the SEC, as well as the risk that Quanterix’ plan of restructuring and realignment results in unexpected costs, the risk that Quanterix is unable to implement the plan of restructuring and realignment as intended and the risk that implementation of the plan of restructuring and realignment is delayed. Except as required by law, Quanterix assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

 

Contacts

 

Media Contact:

PAN Communications

Lauren Force, 617-502-4366

pan.quanterix@pancomm.com