SALT LAKE CITY--(BUSINESS WIRE)--Great Basin Scientific, Inc. (Nasdaq:GBSN), a molecular diagnostics company, today announced preliminary revenue results for the second quarter of 2016. For the second quarter of 2016, revenue was $728,957, an increase of 38.7% over the second quarter of 2015. Great Basin’s installed customer base is 260 as of June 30, 2016, an increase of 126.1% over the second quarter of last year.
Second Quarter 2016 Highlights:
- Entered into a $75MM convertible note financing
38 new customers added (see Exhibit 1)
- 260 total customers
- 253 C. diff customers
- 78 Group B Strep customers
- Group B Strep penetration increased to 30% of customers
- 516 Result Reporting Instruments at customer sites
- Revenues at existing customer sites declined seasonally from the first quarter to second quarter in 2016 due to decline in C. diff testing that occurs with the end of flu season
- Revenues at customer sites using the Great Basin system for at least one full year increased by 12% year-over-year, primarily due to a modest increase in C. diff testing and adoption of our Group B Strep test
- Commercial launch of Shiga Toxin Direct Test and Staph ID/R Panel delayed due to manufacturing validation, on-track to launch in the third quarter of this year
- Continued listing compliance plan accepted by Nasdaq’s Listing Qualifications Panel and an extension to regain compliance with the $35 million market value of listed securities requirement to October 10, 2016 was granted
“We are thrilled with our continued success in 2016 and are pleased to be ahead of plan for the year in securing revenue-producing customer sites,” said Ryan Ashton, co-founder and chief executive officer of Great Basin. “Our recently closed financing allows us to be more aggressive in both our instrument manufacturing plans and the expansion of our sales team, therefore we are raising our guidance for customer acquisition for both 2016 and 2017. As we look to double our menu of commercially available assays from two to four in the third quarter of 2016, we anticipate we will more than double our potential revenue per customer from $15,000 to approximately $35,000, with the caveat that not all our customers will use all our assays. We expect to see our revenue growth trajectory increase over the coming months, particularly in the second half of 2017 as our customers evaluate and add these assays to their diagnostic services.”
The Company will host a business update call to provide further details on its operational progress to-date and further guidance on corporate objectives today at 4:30 PM EDT. Great Basin invites all interested parties to join this call by dialing (877) 407-0789. For those who are not able to listen live, the transcript of the prepared remarks has been filed on a form 8-K with the securities and exchange commission and is also on the Investor Relations section of the Company’s website, www.gbscience.com.
About Great Basin Scientific
Great Basin Scientific is a molecular diagnostics company that commercializes breakthrough chip-based technologies. The Company is dedicated to the development of simple, yet powerful, sample-to-result technology and products that provide fast, multiple-pathogen diagnoses of infectious diseases. The Company's vision is to make molecular diagnostic testing so simple and cost-effective that every patient will be tested for every serious infection, reducing misdiagnoses and significantly limiting the spread of infectious disease.
This press release includes forward-looking statement regarding events, trends and business prospects, which may affect our future operating results and financial position, including statements regarding the Company’s potential revenue growth, expected customer acquisitions, anticipated new commercially available assays, instrument manufacturing plans, and increases in sales staff. Forward-looking statements involve risk and uncertainties, which could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risk and uncertainties include, but are not limited to: (i) our limited operating history and history of losses; (ii) our ability to develop and commercialize new products and the timing of commercialization; (iii) our ability to obtain capital when needed; and (iv) other risks set forth in the Company's filings with the Securities and Exchange Commission, including the risks set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. These forward-looking statements speak only as of the date hereof and Great Basin Scientific specifically disclaims any obligation to update these forward-looking statements, except as required by law.
|Customers* and Total Assays Placed|
|Qtr 1||Qtr 2||Qtr 3||Qtr 4||Qtr 1||Qtr 2|
|Customers at Qtr End**||101||115||143||186||222||260|
|C. diff Customers||101||115||142||185||219||253|
|Group B Strep Customers||0||0||25||47||61||78|
|Total Assays Placed at Qtr End||101||115||167||232||280||331|
*Company counts as “Customers” only labs that regularly place revenue-generating orders and use our assays to report results to clinicians
**30% of Customer sites are using more than one Assay