Accelerate Diagnostics, Inc. (NASDAQ:AXDX) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET

Company Participants

Laura Pierson - Investor Relations

Jack Phillips - President & Chief Executive Officer

David Patience - Chief Financial Officer

Conference Call Participants

Andrew Brackmann - William Blair

Operator

Good day, and welcome to the Accelerate Diagnostics Incorporated 2023 Q1 Results Conference Call. All participants will be in listen-only mode. After today's presentation, there will be a question-and-answer session. Please note, this event is being recorded.

I would now like to turn the conference over to Laura Pierson of Accelerate Diagnostics. Please go ahead.

Laura Pierson

Before we begin, it is important to share that information presented during this call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include projections, statements about our future and those that are not historical facts. All forward-looking statements that are made during this conference call are subject to risks, uncertainties and other factors that could cause our actual results to differ materially. These are discussed in greater detail in our annual report on Form 10-K for the year ended December 31, 2022, and other reports we file with the SEC.

It is my pleasure to now introduce the company's President and CEO, Jack Phillips.

Jack Phillips

Thank you, Laura. Good afternoon, and welcome to our first quarter earnings call. Today's call will focus on our first quarter results, and include several updates on progress during the quarter. My commentary will focus on our three important strategic priorities. First, building financial strength. This includes restructuring our current debt obligation and reducing our cash burn, while improving our operational efficiency. Our second priority is to grow market share through our Becton Dickinson partnership. And thirdly, we are focused on delivering on innovation by advancing our next generation susceptibility platform, Wave.

Before providing additional detail on each of these areas, I would like to hand it over to our Chief Financial Officer, David Patience, to review our first quarter financial results. David?

David Patience

Thank you, Jack, and good afternoon, everyone. In the first quarter, the US contracted three new Pheno instruments and brought another 10 Pheno instruments live. We ended the quarter with a revenue-generating install base of 338 Pheno instruments and a backlog of 62 instruments pending implementation.

As we expected, the first quarter was soft for new contracted accounts as our commercial activity with Becton Dickinson continues to ramp up. Net sales were approximately $2.8 million in the first quarter, compared to approximately $3 million for the same period in 2022. This slight year-over-year decrease was driven by a lack of new Pheno contracting in the current quarter.