Company Update (NASDAQ:NSPH): Nanosphere, Inc. Announces Record Q3 2015 Results


Nanosphere, Inc. (NASDAQ:NSPH), a company enhancing medicine through targeted molecular diagnostics, today reported financial and operating results for the third quarter ended September 30, 2015.

Nanosphere achieved record revenues for the third quarter of 2015 of $4.9 million compared to $3.7 million in the third quarter of 2014. This 33% year-over-year revenue growth for the quarter ended September 30, 2015 was driven by our expanding customer base and associated infectious disease microbiology test revenue, which grew more than 69% over Q3 2014. The Company also confirmed full year revenue guidance for 2015 of $18-20 million.

“We are pleased to report another consecutive quarter of record revenue. Our continued progress is driven by a clear focus on execution and continued adoption of our Verigene system and its expanding menu though our U.S. customer base. In addition, we continue to make significant progress on our next generation Verigene Flex System and expect to start clinical trials at year end,” said Michael McGarrity, Nanosphere’s president and chief executive officer.

Gross margins were 20% in the three months ended September 30, 2015 compared to 36% in the same period of 2014. This decrease of 16% is due to an increase to our warranty and inventory reserves of $0.5 million due to recent experience, and additional expense of $0.25 million related to leased evaluation equipment held at customer locations.

Net of these non-cash accounting adjustments, gross margin for the three months ended September 30, 2015 was 36%, and flat when compared with the same period in 2014.

Sales, general and administrative expenses in the third quarter of 2015 increased to $5.4 million from $5.1 million in the prior year period. Research and development expenses decreased to$3.5 million in the third quarter of 2015 as compared to $5.5 million in the third quarter of 2014 due to the timing of clinical studies.

Net loss for the third quarter of 2015 was $8.8 million, as compared to $9.6 million in the third quarter of 2014.

Cash at September 30, 2015 was $16.3 million, with $4 million of this being restricted cash. Cash used in operations during the quarter ended September 30, 2015 was $6.9 million, compared to $7.7 million for the same period in 2014 due to a lower net operating loss. (Original Source)

Shares of Nanosphere are up 22.86% to $2.15 in after-hours trading . NSPH has a 1-year high of $9.60 and a 1-year low of $1.58. The stock’s 50-day moving average is $1.86 and its 200-day moving average is $2.82.

On the ratings front, Nanosphere has been the subject of a number of recent research reports. In a report issued on September 8, Chardan analyst Keay Nakae initiated coverage with a Buy rating on NSPH and a price target of $3.30, which implies an upside of 90.8% from current levels. Separately, on August 12, Piper Jaffray’s William Quirk maintained a Hold rating on the stock and has a price target of $2.60.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Keay Nakae and William Quirk have a total average return of -22.7% and 0.1% respectively. Nakae has a success rate of 23.5% and is ranked #3731 out of 3829 analysts, while Quirk has a success rate of 51.5% and is ranked #2497.

Nanosphere Inc develops, manufactures and markets molecular diagnostics platform, the Verigene System, which enables sensitive genomic and protein testing on a single platform.