- Bionano announced that it has priced a financing to raise an aggregate of $80.0 million in a registered offering and concurrent private placement of senior secured convertible notes due 2025 and warrants
- Preliminary Q3 revenue expected to be between $9.1 and $9.3 million, which would represent an estimated increase of 26% to 29% over Q3 2022 and would be at the higher end of revenue guidance of $8.8 million to $9.2 million provided in August 2023
- Installed base of Saphyr® systems reached 301 as of September 30, 2023, which represents growth of the installed base by 20 systems in the quarter and an increase of 39% over the 217 Saphyr systems installed as of September 30, 2022
- Preliminary number of nanochannel array flowcells sold in the quarter expected to be 6,176, which would represent an estimated increase of 55% over the 3,975 flowcells sold in the third quarter of 2022
- Company implemented initiatives intended to further reduce headcount, manufacturing costs and operating expenses for an estimated savings on non-GAAP total expenses (consisting of operating expenses and cost of goods sold) on an annual basis, excluding stock-based compensation, starting in 2024 of approximately $33.0 million when combined with the cost savings realized from the reduction in force initiated in May 2023
Bionano Genomics, reported certain business updates and unaudited preliminary financial results for the third quarter ended September 30, 2023.
Pricing of Financing
- Earlier, Bionano announced the pricing of an $80.0 million registered offering and concurrent private placement comprising of (i) $45.0 million aggregate principal amount of senior secured convertible notes due 2025 (the “Registered Notes”) and warrants (the “Registered Warrants”) to purchase 21,660,650 shares of its common stock in a registered offering, and (ii) $35.0 million aggregate principal amount of senior secured convertible notes due 2025 (the “Private Placement Notes” and together with the Registered Notes, the “Notes”) in a concurrent private placement, in each case to a certain accredited investor (the “Buyer”). The sale of the Notes and the Registered Warrants to the Buyer is expected to close on October 13, 2023, subject to customary closing conditions.
- Bionano has also granted the Buyer an option to purchase up to an additional $25.0 million aggregate principal amount of senior secured notes due 2025 and warrants to purchase up to 6,768,953 shares of common stock in a subsequent private placement on substantially the same terms as the Private Placement Notes and the Registered Warrants, respectively.
Q3 2023 Preliminary Unaudited Financial and Business Results
- Revenues for the third quarter 2023 are expected to be in the range of $9.1 million to $9.3 million, an estimated increase of 26% to 29% compared to the third quarter of 2022, which would be at the higher end of revenue guidance of $8.8 million to $9.2 million provided in August.
- Installed base of Saphyr® systems totaled 301 at the end of the third quarter 2023, which was an increase of 20 systems over the second quarter of 2023 and represents a 39% increase over the 217 installed systems reported at the end of the third quarter of 2022.
- Nanochannel array flowcells sold in the third quarter is expected to be 6,176, an estimated increase of 55% over the 3,975 flowcells sold during the third quarter of 2022.
Appointed New CFO Effective September 11, 2023
- As previously announced, Gülsen Kama joined as the Chief Financial Officer (CFO), effective September 11, 2023. Ms. Kama has an extensive background in business planning and execution, especially in operating environments that demand rigorous management of expenses to enable profitable growth.
Operating and Manufacturing Cost Reductions
- On October 9, 2023, Bionano committed to a series of cost savings initiatives including a reduction in force and reducing facility costs and discretionary spending unrelated to headcount that, taken together with cost savings realized from the reduction in force the Company announced in May, is expected to result in a reduction of non-GAAP operating expenses by approximately $31.6 million on an annualized basis starting in 2024, excluding savings in stock-based compensation.
- Part of the savings comes from a reduction in force of 66 positions eliminated as part of the October 2023 initiatives, which, when combined with the positions eliminated since May 2023, is expected to bring the number of employees planned for December 31, 2023 to 321.
- Cost of goods sold is expected to be reduced by approximately $1.4 million on an annual basis, starting in 2024, in connection with the October 2023 initiatives, which will be a component of anticipated improvements to gross margin going forward.
“We are pleased to be recognizing several significant advancements for the company today, including the addition of Gülsen Kama as CFO, preliminary results of another strong quarter of performance, a financing, and cost savings initiatives that we believe will be an important part of Bionano becoming profitable. The preliminary Q3 2023 results include strong revenues that are expected to meet and potentially exceed the guidance provided in August, reflect solid revenue growth compared to Q3 2022, and demonstrate increases in the installed base of optical genome mappers and in flowcells sold compared to Q3 2022.
Our objective in financing the company during what we believe is one of the most challenging financing environments for growth companies in health care has been to obtain enough capital to provide a meaningful extension in the cash runway, while also managing the dilutive impact. We believe we have found a good balance in the agreement we made with the Buyer and that this financing is an important step toward closing the gap to profitability,” said Erik Holmlin, PhD, president and chief executive officer of Bionano.
Gülsen Kama, CFO of Bionano, added, “Reducing our operating expense footprint is something that we felt was important to do. It’s never easy to reduce the number of employees, all of whom have contributed significantly to our progress so far, but in the face of difficult prioritization decisions in the current equity capital market environment, we believe these steps were necessary to implement alongside the financing to reduce the overall capital needed to reach profitability.”
“We feel we can continue to prioritize and invest in our highest priority programs that support the ongoing adoption of optical genome mapping (OGM) and market development for OGM including our planned product launches and regulatory development,” commented Dr. Holmlin.
Bionano has not completed preparation of its financial statements for the third quarter of 2023. The financial performance measures presented in this press release for the third quarter of 2023 are preliminary and unaudited, based on management’s initial review of the information presented, and are thus inherently uncertain and subject to change as Bionano completes its end-of-period reporting process and related activities for the third quarter of 2023. Bionano is in the process of completing its customary quarter-end close and review procedures as of and for the quarter ended September 30, 2023, and the final results for this period could differ from the preliminary estimated results disclosed in this press release. During the course of the preparation of Bionano’s unaudited consolidated financial statements and related notes as of and for the quarter ended September 30, 2023, Bionano’s independent registered public accountants may identify items that could cause final reported results to be materially different from the preliminary estimates presented herein. Additional information and disclosures would be required for a more complete understanding of Bionano’s financial position and results of operations as of and for the quarter ended September 30, 2023. Accordingly, undue reliance should not be placed on this preliminary information.
Non-GAAP Financial Measures
We refer to non-GAAP total expenses and non-GAAP operating expenses in this press release but we do not provide guidance for the most directly comparable GAAP measures, total expenses and operating expenses. Similarly, we cannot provide a reconciliation between our most directly comparable GAAP measures, total expenses and operating expenses without unreasonable effort due to the unavailability of reliable estimates for certain components including stock-based compensation, which are not within our control and may vary greatly between periods and could significantly impact our financial results calculated in accordance with GAAP.
Semiconductor Equipment
Glass to enable next-gen IC substrates – An interview with Absolics
Computing and Software
Henkel Semiconductor capillary underfill enables complex AI and HPC large body advanced packaging designs
Semiconductor Equipment
Camtek to showcase advanced inspection and metrology solutions at SEMICON Taiwan 2024
Semiconductor Materials
Powering the AI revolution: The crucial role of Soitec engineered substrates for silicon photonics and optoelectronics
Semiconductor Equipment
Czech experts on semiconductors arrived in Taiwan
Photonics and Lighting
Optica CEO Liz Rogan departs following congressional inquiry into Huawei funding
Computing and Software
Camtek receives orders for over $25 million for multiple systems from a Tier-1 HBM manufacturer
Semiconductor Equipment
Research MBE machine order for USA
Computing and Software
EU project ARCTIC joins forces towards the era of scalable control technology for quantum processors
Sensing and Actuating