NanoString Technologies Inc (NASDAQ:NSTG) shares are trading higher by over 10% after the company disclosed Q3 FY23 preliminary results and a reorganization designed to accelerate its path to profitability.
The company reported revenue growth of 63% Y/Y to over $48 million, above the consensus of $46.26 million, vs. its guidance range of $45 million-$47 million.
By segment, Spatial Biology revenue is expected to be about $29 million, above the upper end of the guidance range of $27 million-$28 million.
nCounter revenue (inclusive of all service and other revenue) is expected to be about $19 million, at the upper end of the outlook range of $18 million-$19 million.
Cost Savings: The company plans to deploy a reorganization of the research and development and manufacturing departments and activities, which includes cutting about 110 positions and diminishing expenses by over $15 million annually. The company expects to incur a charge of around $5 million in Q4 related to these initiatives.
Also, NSTG plans to reduce the use of cash to around $20 million in Q3 vs. about $37 million in Q2 and expects further improvement in Q4 FY24.
“With strong revenue growth and improved working capital, we were able to reduce our cash burn by about 50% over the prior quarter. We expect our reorganization will further reduce our expenses and net operating loss in the fourth quarter and 2024,” stated Thomas Bailey, CFO.
The company will release Q3 FY23 results on November 6, 2023.
Price Action: NSTG shares are up by 10.0% at $1.32 premarket on the last check Tuesday.
