Genetic Analysis (GEAN) Q3 2024 earnings summary

Executive summary

• Achieved 32% YTD growth in core GA-map® kit sales compared to the same period last year, despite overall sales revenue declining due to discontinued instrument sales in Europe.

• Launched GA-map® Discovery for the research market and completed a manufacturing improvement project, resulting in significant cost savings and increased production capacity.

• Expanded into new European labs, with two new system installations in Q3, and continued to develop strategic partnerships and pipeline products.

Financial highlights

• Q3 2024 operating income: NOK 3.6 million (down from NOK 4.7 million in Q3 2023); sales revenue: NOK 2.0 million (down from NOK 2.6 million).

• YTD September 2024 sales revenue: NOK 9.7 million (down from NOK 10.3 million); net loss: NOK -13.8 million (improved from NOK -17.1 million).

• Gross margin increased to 78.7% YTD September (from 72.7% last year) due to improved product mix and cost savings.

• Operating costs reduced by 26% in Q3 and 21% YTD September, mainly from lower R&D and general cost reductions.

• Cash and cash equivalents at period end: NOK 11.4 million (up from NOK 9.8 million last year).

Outlook and guidance

• Positive market trends in microbiome diagnostics, with increasing global customer interest and new corporate approaches.

• FDA approval of new microbiome-based therapeutics and expanding disease links expected to drive future sales growth.

• Focus remains on expanding reagent kit sales, leveraging new distribution models, and pursuing co-funded R&D projects.