SAN DIEGO - Telesis Bio Inc. (NASDAQ: TBIO), a notable player in automated RNA and DNA synthesis technology, announced its preliminary financial results for the fourth quarter and the full year of 2023. According to the unaudited figures, the company experienced a significant increase in sales of its BioXp kits, which are expected to surpass $1.0 million for the fourth quarter. This marks a 59.6% increase from the previous quarter and a 25.9% rise from the same period the previous year.
The growth in BioXp kit sales was largely driven by the adoption of the company's mRNA workflows, which saw a more than 300% increase compared to the fourth quarter of 2022. Overall, BioXp kit sales for 2023 climbed by 10% in comparison to the previous year.
Despite these gains, Telesis Bio's total revenue for the fourth quarter saw a 26.3% decrease to $7.0 million, down from $9.5 million in the same quarter of 2022, primarily due to weaker capital spending in end markets. However, the full-year total consolidated revenue edged up to $27.5 million from $27.4 million in 2022.
The company also reported a 12.4% increase in total revenue, excluding BioXp instrument sales and discontinued operations, to $20.9 million for 2023. Collaboration revenue for the year reached $8.7 million, a 30.7% increase from the prior year, reflecting the company's successful achievement of several key technology milestones.
Gross margin for the year is expected to exceed 60.0%, up from 56.8% in 2022, attributed to an improved product mix, increased high-margin collaboration revenue, and contributions from oligo insourcing.
Operating expenses for the fourth quarter are expected to be around $11.5 million, down from $14.3 million in the previous year. Annual operating expenses also saw a reduction to $52.8 million from $62.1 million in 2022.
Todd R. Nelson, Ph.D., Founder and CEO of Telesis Bio, commented on the results, stating the company achieved record BioXp kit sales and expanding gross margins amidst significant cost-cutting initiatives. He emphasized the transformative impact of their mRNA synthesis kits on customers' screening and discovery processes.
The information in this article is based on a press release statement from Telesis Bio.
InvestingPro Insights
As Telesis Bio Inc. (NASDAQ: TBIO) showcases growth within its BioXp kit sales and gross margins, a glance at the company's financial health through InvestingPro data reveals a more nuanced picture. The company's market capitalization stands at $23.39 million, reflecting its niche position in the biotechnology sector. Despite the optimism surrounding its product sales, TBIO is grappling with profitability challenges, as indicated by a negative price-to-earnings (P/E) ratio of -0.46, which further dips to -0.6 when adjusted for the last twelve months as of Q3 2023. This underlines the company's current inability to generate net profits.
Moreover, the company's revenue growth has been a mixed bag, with a notable year-over-year increase of 42.56% in the last twelve months as of Q3 2023, which contrasts with a quarterly decrease of 16.64% in Q3 2023. This suggests volatility in revenue streams, which could impact financial stability. Nevertheless, a substantial gross profit margin of 62.15% in the same period indicates strong underlying efficiency in Telesis Bio's core operations.
In light of these findings, one InvestingPro Tip that stands out is the company's significant return over the last week, with a 146.91% increase in price total return. This surge could be indicative of investor optimism following the recent announcements or other market dynamics. However, it's worth noting that analysts do not anticipate the company will be profitable this year, which adds a layer of caution for potential investors.
For those seeking a deeper analysis of Telesis Bio's financial outlook, additional InvestingPro Tips are available, including insights on cash burn rate, earnings revisions, and stock price volatility. In total, there are 13 additional tips listed on InvestingPro for TBIO, which can be accessed at https://www.investing.com/pro/TBIO. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive understanding of the company's financial landscape. With this information, stakeholders can make more informed decisions regarding their investments in Telesis Bio.
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