UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 5, 2020
QUANTERIX CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 001-38319 | 20-8957988 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
900 Middlesex Turnpike Billerica, MA |
01821 |
| (Address of principal executive offices) | (zip code) |
Registrant’s telephone number, including area code: (617) 301-9400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging Growth Company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered | ||
| Common Stock, $0.001 par value per share | QTRX | The Nasdaq Global Market |
| Item 2.02 | Results of Operations and Financial Condition. |
On May 5, 2020, Quanterix Corporation issued a press release announcing its financial results for the first quarter ended March 31, 2020. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. | Description |
| 99.1 | Press Release dated May 5, 2020. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| QUANTERIX CORPORATION | ||
| By: | /s/ Amol Chaubal | |
| Amol Chaubal | ||
| Chief Financial Officer | ||
Date: May 5, 2020
Exhibit 99.1
Quanterix Corporation Releases Operating Results for First Quarter 2020
$15.7M revenues, 27% Q1 YOY revenue growth
Billerica, Mass. – May 5, 2019 — Quanterix Corporation (NASDAQ:QTRX), a company digitizing biomarker analysis to advance the science of precision health, today announced financial results for the three months ended March 31, 2020.
“Q1 2020 was yet another strong quarter for Quanterix underscored by strong execution and revenue growth, particularly given the COVID-19 pandemic,” said Kevin Hrusovsky, President, Chairman and Chief Executive Officer, Quanterix. “We are making continuous advances in many neurology, immunity and COVID-19 applications. We are also utilizing our Accelerator Laboratory to run trials and studies for customers experiencing disruptions in their laboratories. Despite the present near-term challenges, we remain positive and committed to the unprecedented market opportunity.”
First Quarter 2020 Financial Highlights
Key financial results for the first quarter of 2020 are shown below:
| · | Q1 revenue was $15.7M versus prior year Q1 of $12.3M, an increase of 27%; |
| · | Q1 product revenue was $9.8M versus prior year Q1 of $9.5M, an increase of 3%; |
| · | Q1 service and other revenue was $5.8M versus prior year Q1 of $2.8M, an increase of 107%; |
| · | Q1 GAAP gross margin was 43.3% versus prior year Q1 of 48.7%; Q1 non-GAAP gross margin was 48.5% versus prior year Q1 of 48.7%. Q1 2020 gross margin includes 200 bps of adverse impact from our successful HD-X trade-in program. |
For additional information on the non-GAAP financial measures included in this press release, please see “Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financials” below.
First Quarter 2020 Business Highlights
| · | Early in the progression of COVID-19, we took aggressive steps to protect our employees and their families, while rapidly implementing a resilience plan to maintain our operations and support our global customer base. As a result, we have successfully maintained our operations and have expanded our Accelerator capacity to support customer disruptions and sustain clinical trials. |
| · | To support the global public health response, we are engaging closely with researchers and KOLs around the world. We have implemented a set of important and differentiated tools for COVID-19 investigators to immediately deploy to study disease progression, life-threatening cytokine release syndrome and patient-treatment response. Researchers are leveraging Simoa’s extreme sensitivity and specificity of cytokine panels to measure levels and profiles in non-critical and critical COVID-19 patients to identify ways to combat the virus and help prevent cytokine storm. We are also working toward developing a SARS-COV-2 quantitative IgG assay, developing an antigen early detection assay in blood and a high-definition SARS-COV-2 assay to enable research pursuits. |
| · | Sponsored a webinar with Powering Precision Health, “Highly Sensitive and Accurate Multiplex Test to Monitor the Immune Response to Viral Infection,” which featured insights from several researchers actively treating COVID-19 patients in Europe and China. Specifically, the webinar discussed capabilities to conduct highly sensitive and accurate multiplexed tests for cytokines and chemokines in serum and plasma. |
| · | Reinforced the growing utility of Simoa in neurology research, including results published in JAMA Network Open, demonstrating the promise of blood biomarkers to serve as clinical tools for objectively identifying and monitoring sports-related concussions (SRCs) and mild traumatic brain injuries (mTBIs), marking a notable advance in the pursuit of a concussion diagnostic test. Conducted as part of the CARE Consortium, and funded by the US Department of Defense (DOD) and the National Collegiate Athletic Association (NCAA), the study used Simoa to evaluate a total of 504 collegiate athletes in what is considered the largest athletic cohort for a biomarker concussion study to date. |
| · | Quanterix’ Simoa technology was highlighted in 53 new publications, bringing total Simoa-specific inclusions to over 789 publications. |
Conference Call
In conjunction with this announcement, Quanterix Corporation will host a conference call on May 5, 2020, at 4:30 p.m., EDT to discuss the Company’s financial results and business outlook. To access this call, dial (833) 686-9351 for domestic callers, or (612) 979-9890 for international callers. Please reference the following conference ID: 4994882.
A live webcast will be accessible on the Investors section of Quanterix’ website: http://www.quanterix.com. The webcast will be available on the Company’s website following completion of the call.
Financial Highlights (in thousands)
| Quanterix Income Statement | ||||||||
| in '000 USD | Q1 2020 | Q1 2019 | ||||||
| Product Revenue | 9,833 | 9,547 | ||||||
| Service and Other Revenue | 5,762 | 2,790 | ||||||
| Collaboration Revenue | 132 | 0 | ||||||
| Total Revenue | 15,727 | 12,337 | ||||||
| Cost of Product Revenue | 6,186 | 4,248 | ||||||
| Cost of Services Revenue | 2,728 | 2,082 | ||||||
| Gross Profit | 6,813 | 6,007 | ||||||
| Gross Margin % | 43.3 | % | 48.7 | % | ||||
| Research and Development | 4,268 | 3,852 | ||||||
| Selling, General and Administrative | 14,273 | 11,512 | ||||||
| Total Operating Expenses | 18,541 | 15,364 | ||||||
| Loss from Operations | -11,728 | -9,357 | ||||||
| Interest Income (Expense), net | 161 | 21 | ||||||
| Other Income (Expense), net | -167 | -47 | ||||||
| Tax | 124 | -22 | ||||||
| Net Loss | -11,610 | -9,405 | ||||||
Weighted average shares outstanding was 28.2 million for Q1 2020.
| Quanterix Balance Sheet | ||||||||
| in '000 USD | At 3/31/20 | At 12/31/19 | ||||||
| Cash and Cash Equivalents | 96,359 | 109,155 | ||||||
| Accounts Receivable | 12,065 | 10,906 | ||||||
| Inventory | 11,392 | 10,463 | ||||||
| Prepaid Expenses and Other | 2,722 | 2,137 | ||||||
| Total Current Assets | 122,538 | 132,661 | ||||||
| Restricted Cash | 1,000 | 1,026 | ||||||
| Property and Equipment, Net | 11,992 | 12,047 | ||||||
| Intangible Assets, Net | 13,115 | 14,307 | ||||||
| Goodwill | 8,914 | 9,353 | ||||||
| Right-of-Use Assets | 12,221 | 0 | ||||||
| Other Non-Current Assets | 525 | 557 | ||||||
| Total Assets | 170,305 | 169,951 | ||||||
| Accounts Payable & Accrued Expenses | 12,083 | 14,845 | ||||||
| Deferred Revenue | 5,438 | 4,697 | ||||||
| Current Portion of Long Term Debt | 0 | 75 | ||||||
| Lease Liabilities | 305 | 0 | ||||||
| Other Current Liabilities | 184 | 216 | ||||||
| Total Current Liabilities | 18,010 | 19,833 | ||||||
| Deferred Revenue, Net of Current Portion | 396 | 466 | ||||||
| Long Term Debt, Net of Current Portion | 7,608 | 7,587 | ||||||
| Lease Liabilities, Net of Current Portion | 22,741 | 0 | ||||||
| Other Non-Current Liabilities | 2,504 | 13,407 | ||||||
| Total Liabilities | 51,259 | 41,293 | ||||||
| Total Stockholders’ Equity | 119,046 | 128,658 | ||||||
| Total Liabilities and Stockholders’ Equity | 170,305 | 169,951 | ||||||
Use of Non-GAAP Financial Measures
To supplement the Company’s financial statements presented on a GAAP basis, the Company has provided certain non-GAAP financial measures, including non-GAAP gross margin. Management uses these non-GAAP 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 non-GAAP 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 non-GAAP measures to their most directly comparable GAAP financial measures set forth below.
Reconciliation of Non-GAAP Financials
(in thousands)
(unaudited)
| 2020 | 2019 | |||||||
| Three months ended | ||||||||
| March 31 | ||||||||
| Total revenue | $ | 15,727 | $ | 12,337 | ||||
| Gross profit | $ | 6,813 | $ | 6,007 | ||||
| Acquisition-related purchase accounting charges (Note 1) | $ | 820 | $ | – | ||||
| Non-GAAP gross profit | $ | 7,633 | $ | 6,007 | ||||
| GAAP gross margin % | 43.3 | % | 48.7 | % | ||||
| Non-GAAP gross margin % | 48.5 | % | 48.7 | % | ||||
Note 1: During the three months ended March 31, 2020, we incurred $438 thousand of acquisition-related amortization of inventory valuation in connection with our acquisition of UmanDiagnostics. Also during the three months ended March 31, 2020, we incurred $382 thousand of acquisition-related amortization of intangible assets in connection with our acquisition of UmanDiagnostics.
About Quanterix
Quanterix is a company that’s digitizing biomarker analysis with the goal of advancing the science of precision health.
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. 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 are discussed in Quanterix’ filings with the U.S. Securities and Exchange Commission,
including the "Risk Factors" sections contained therein. 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:
Quanterix, Inc.
Amol Chaubal, CFO, 617-301-9495
achaubal@quanterix.com
PAN Communications
Staci Didner, 617-502-4300
quanterix@pancomm.com