Accelerate Diagnostics, Inc. (NASDAQ:AXDX) Q1 2024 Earnings Conference Call May 8, 2024 4:30 PM ET

Company Participants

Laura Pierson - Investor Relations Officer
Jack Phillips - Chief Executive Officer, President & Director
David Patience - Chief Financial Officer, Principal Financial Officer & Principal Accounting Officer

Conference Call Participants

Dustin Scaringe - William Blair

Operator

Good day, and welcome to the Accelerate Diagnostics Incorporated. First Quarter 2024 Results Conference Call. All participants will be in a listen only mode. After today's presentation there will be an opportunity to ask questions with our covering analysts. I would now like to turn the conference over to Ms. Laura Pierson of Accelerate Diagnostics. Please go ahead ma'am.

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 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. Today I would like to provide a detailed update on the Wave program. Before I provide my update, I will pass it on to David Patience, our CFO to summarize our financial results for the quarter.

David Patience

Thank you, Jack and good afternoon, everyone. Net sales were approximately $2.9 million for the quarter, which compares to approximately $2.8 million for the same period in the prior year. This was driven by an increase in reoccurring consumable net sales. Gross margin was approximately 25% for the quarter, which compares to approximately 36% for the same period in the prior year. The overall decline in gross margin was driven by product mix.

Selling, general and administrative expenses were approximately $5.7 million for the quarter, which compares to $10.1 million for the same period in the prior year. The SG&A expenses for the quarter include approximately $900,000 in non-cash stock-based compensation. The overall decline in SG&A expenses were primarily due to lower employee related expenses in the current period, as well as non-recurring legal and advisory related expenses in the prior period.