Great Basin Scientific Inc(NASDAQ:GBSN) released the business update on 3Q2016 in a letter to shareholders. There has been notable activity in the last quarter, in respect of progress toward achieving company objectives for footprint and revenue increase, the amortization of the last year Notes and menu expansion. To help investors understand what company is delivering and what they are building toward, the company released a summary of its business metrics.
The financial performance
Revenues in 3Q2016 increased 35% YoY, mainly from the two tests sales, named Group B Strep and C. diff. Group B Strep tests sales surged 339% in 3Q2016 over a year ago, while sales of C. diff jumped 20% in the reported period. As projected, sales of C. diff assessments stayed soft following the decline in C. diff assessment that happens outside of flu season.
Great Basin projected that C. diff revenues can grow in the imminent two quarters as they enter flu season. The company anticipate to post increased revenue of Group B Strep. The installed client base surged 78% in 3Q2016 compared to a year earlier, to 255 customers. While this shows a decline in installed sites over the second quarter 2016, the drop in part shows concerted measures to take back under used analyzers at low-volume locations for placement with higher value consumer sites. They have 510 analyzers put with a higher RPI, which, along with expanded product menu, can improve average RPI.
In 3Q2016, Great Basin doubled product menu with the business launch of 2 new offerings: a test for STEC; and a panel for blood sepsis resulted by Staph ID/R. While both products show longer assessment windows than Group B Strep and C. diff, commercial releases for both are advancing well and they are delighted with the interest expressed by existing clients, and the interest from reference labs and hospitals.
Predominantly exciting to company is the expressed interest from research hospitals and large medical centers that typically record higher volumes of testing compared to historical client base of rural and smaller suburban hospitals. These entities if adopts company’s systems and utilize assays, could drive in higher RPI.