Telesis Bio sees Q4 revenue $7M vs. $9.5M last year

Telesis Bio announced certain preliminary, unaudited financial results for the fourth quarter and year ended December 31, 2023. The results are subject to the completion of the Company’s year-end financial reporting processes, reviews, and audit. BioXp kit revenue for the fourth quarter of 2023 is expected to exceed $1.0 million, the highest level in the history of the Company and an increase of 59.6% from the prior quarter and 25.9% compared to the same quarter last year. This increase was driven by rapid adoption of highly differentiated mRNA workflows, which grew at more than 300% compared to the same quarter last year. For the full 2023 fiscal year, BioXp kit sales increased 10% compared to the prior year. Total consolidated revenue for the 2023 fiscal year is expected to be $27.5 million, up slightly from $27.4 million achieved in 2022. Total revenue for the fourth quarter of 2023 is expected to be $7.0 million, a 26.3% reduction from $9.5 million for the same period in 2022 due primarily to capital spending weakness in end markets and the resulting mix-shift toward lower-priced BioXp 3250 instruments. Total revenue, excluding BioXp instrument sales and discontinued BioFoundry Services operations, were $20.9 million for the full fiscal-year period, an increase of 12.4% compared to $18.6 million for the same categories in the prior year period. Collaboration revenue for the year, driven in part by the successful achievement of several key technology milestones, is expected to be $8.7 million, an increase of 30.7% above the prior year’s collaboration revenue of $6.7 million. Gross margin for the 2023 fiscal year is expected to exceed 60.0%, an increase from 56.8% in 2022. This increase was driven by improving product mix, an increase in high margin collaboration revenue, and early contribution from oligo insourcing which achieved production status in the fourth quarter and demonstrated the capacity to internally fulfill more than 70% of the company’s oligo supply needs. Fourth quarter operating expense, exclusive of finalizing an assessment of goodwill, is expected to be approximately $11.5 million, compared to $14.3 million in the prior year, and $52.8 million for the 2023 full year, a decrease from $62.1 million in 2022. Net of non-cash and one-time items, operating expense for 2023 was approximately $42.0 million. Fourth quarter cost reductions totaling $3.7 million are not fully reflected in 2023 results and are expected to result in lower operating expenses going forward.