Accelerate Diagnostics, Inc.

Net sales were approximately $3 million in Q3 2024 versus approximately $3.3 million in the prior-year quarter. Gross margin was approximately 29% versus approximately 3% a year ago. SG&A was approximately $5.6 million versus $7.8 million, and R&D was $3.8 million versus $7 million. Net loss was approximately $14.6 million, or $0.59 per share. Cash used was approximately $5.5 million net of financing activity, and management said its cash burn target remains approximately $5 million per quarter. For forward guidance, management expects to submit WAVE to the FDA in Q1 2025 with an approximate nine-month review timeline, and said current cash should be sufficient through year-end 2025 assuming contingent contractual payments related to an on-market third-party product partnership.

Jack Phillips framed the quarter around three strategic priorities: advancing WAVE, launching Arc, and strengthening commercial positioning in rapid positive blood culture AST and isolate susceptibility testing. He said the WAVE trial is progressing as planned, customers are reacting positively to the system’s ease of use and workflow, and the recent Arc clearance creates a timely opportunity to offer automated sample preparation for rapid PBC ID. His tone was upbeat and confident, emphasizing long-term market leadership, conversion of current Pheno customers to WAVE, and expansion into new markets and applications.

David Patience focused on improved operating efficiency and cash discipline. He cited Q3 net sales of approximately $3 million, gross margin of approximately 29%, SG&A of approximately $5.6 million including about $1 million of non-cash stock comp, and R&D of $3.8 million including about $200,000 of non-cash stock comp. He said cash used was approximately $5.5 million net of financing activity, noted strong working capital gains and that cash used from operations was down over $2 million quarter-over-quarter, and reiterated a $5 million-per-quarter burn target without including Arc contribution yet.

Analysts asked how quickly the installed Pheno base could be transitioned to WAVE, and management said conversion work is already underway through customer education and contract extensions, with expectations to convert the majority of existing Pheno customers after WAVE launches. They also asked about the Arc commercial ramp, and management said it is too early to provide revenue guidance, but sales training and marketing are in place and market interest is strong. On cash usage, management reiterated a $5 million quarterly burn target, said Arc is not yet included in the forecast, and pointed to better working-capital performance and lower operating cash use in the quarter.