Accelerate Diagnostics Inc. (NASDAQ:AXDX) Q4 2023 Results Conference Call March 28, 2024 4:30 PM ET

Company Participants

Laura Pierson - Investor Relations Officer
Jack Phillips - CEO, President and Director
David Patience - CFO, Principal Financial Officer and Principal Accounting Officer

Conference Call Participants

Dustin Scaringe - William Blair

Operator

Hello, and welcome to the Accelerate Diagnostics Fourth Quarter and Full Year 2023 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] Today's presentation will be followed by a question-and-answer session with covering analysts. As a reminder, this conference is being recorded.

I would now like to hand the call to Laura Pierson with Accelerate Diagnostics. Laura, 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, 2023 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, everyone. Today, I would like to discuss the exciting innovation with Wave. I will cover both near-term program milestones and how Wave will revolutionize automated susceptibility testing. Additionally, I will provide updates on our strategic partnership process and our Arc FDA submission.

First, I will pass it over to David Patience, our CFO, to summarize our financial results.

David Patience

Thank you, Jack, and good afternoon, everyone. Net sales were approximately $3 million for the quarter and approximately $12.1 million year-to-date. This compares to approximately $3 million and $12.8 million for the same period in the prior year. The decrease in net sales was driven by lower onetime instrument sales in the current period. This was partially offset by an increase in recurring consumable net sales. Gross margin was approximately 21% for the quarter and year-to-date. This compares to approximately 28% and 26% for the same period in the prior year. The overall decline in gross margin primarily resulted from a $1.2 million inventory write-down of excess inventory during the third quarter of 2023.