NanoString Technologies Releases Operating Results For Third Quarter Of 2016

SEATTLE, Nov. 02, 2016 (GLOBE NEWSWIRE) -- NanoString Technologies, Inc. (NASDAQ:NSTG), a provider of life science tools for translational research and molecular diagnostic products, today reported financial results for the third quarter ended September 30, 2016.

Third Quarter Financial Highlights
  • Total revenue of $23.9 million, 53% year-over-year growth
  • Total product and service revenue of $19.2 million, 38% year-over-year growth
  • Consumables revenue of $11.5 million, including $1.1 million of Prosigna® IVD kits, 27% year-over-year growth
  • Instrument revenue of $6.9 million, 62% year-over-year growth
  • Collaboration revenue of $4.8 million

"We continued to execute well during the third quarter, generating strong growth across our business while advancing our product pipeline and partnerships," said president and chief executive officer Brad Gray.  "A highlight of the quarter was the robust demand for our nCounter SPRINT™ Profiler, which helped drive 62% year-on-year growth in instrument revenue and validated that SPRINT's ability to reach new customers is accelerating instrument placement."

Recent Business Highlights
  • Grew installed base to approximately 450 nCounter® Analysis Systems at September 30, 2016
  • Launched new nCounter Vantage 3D™ Solid Tumor Panels for proteins and single nucleotide variations to enable simultaneous analysis of DNA mutations, messenger RNA, fusion genes, and proteins on a single platform
  • Presented data demonstrating the potential workflow advantages of Hyb & Seq™ sequencing chemistry, requiring less than 60 minutes of sample processing to enable initiation of a sequencing run
  • Appointed Kirk Malloy, Ph.D., seasoned life sciences executive, to the company's board of directors

Third Quarter Financial Results

Revenue for the three months ended September 30, 2016 increased by 53% to $23.9 million, as compared to $15.7 million for the third quarter of 2015. Instrument revenue was $6.9 million, up 62% versus the prior year period, with nCounter SPRINT systems representing approximately half of systems sold. Consumables revenue, excluding Prosigna, was $10.3 million for the third quarter of 2016, 23% higher than in the comparable 2015 quarter. Prosigna IVD kit revenue was $1.1 million for the quarter, an increase of 73% over the third quarter of 2015. Collaboration revenue totaled $4.8 million, compared to $1.8 million for the third quarter of 2015. Gross margin on product and service revenue was 58% for the third quarter of 2016, up from 55% for the prior year period.

Research and development expense increased by 50% to $8.7 million for the third quarter of 2016 versus $5.8 million for the third quarter of 2015, reflecting increased costs associated with biopharma collaborations announced earlier this year and new products and technologies under development for the life science research market.  Selling, general and administrative expense increased by 30% to $15.6 million for the third quarter of 2016 compared to $12.0 million for the prior year period.

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