Great Basin Scientific Inc (NASDAQ:GBSN) released the business update on 3Q2016 performance in a shareholder letter. The company reported that there has been significant activity around company over the last quarter, in respect of advancement toward reaching firm goals for revenue and footprint growth, the amortization of Notes and menu expansion.
Great Basin reported that revenue for 3Q2016 surged 35% year over year, mainly from the sale of two tests, Group B Strep and C. diff. Group B Strep tests sales jumped 339% in the 3Q2016 against a year ago, while C. diff jumped 20% in the same period. As anticipated, sales of C. diff tests continue to be soft due to the drop in C. diff testing that happened outside of flu season, which goes through October through May.
The company anticipates C. diff revenues to surge in the next two quarters as they enter flu season, while they anticipate to post increased revenue of Group B Strep. The installed consumer base grew 78% in 3Q2016 compared to 255 customers, a year ago. While it shows a decline in installed sites from 2Q2016, the drop in part reflects concerted measures to take back under-utilized analyzers from low-volume sites, which then can be placed at higher value customer sites. They have 510 analyzers put with a higher RPI, which, along with their expanded product menu, can improve average RPI.
In 3Q2016, Great Basin doubled product menu with the launch of 2 new offerings: a test for STEC and a panel for blood sepsis due to Staph ID/R. While these products have extended assessment windows than Group B Strep and C. diff, commercial releases for both are doing well and they are delighted with both the interest level expressed by existing clients, and the interest from reference labs and hospitals.
Particularly thrilling to them is the expressed interest from renowned research hospitals and medical centers that typically do record higher volumes of testing compared to company’s historical client base of smaller rural and suburban hospitals, which, if they use Great Basin systems and operate their assays, can drive higher RPI.