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Nanosphere Announces Second Quarter Results, Revises 2013 Guidance and Affirms Timing of Pipeline Products

Nanosphere Announces Second Quarter Results, Revises 2013 Guidance and Affirms 
Timing of Pipeline Products 
NORTHBROOK, IL -- (Marketwired) -- 08/06/13 --  Nanosphere, Inc.
(NASDAQ: NSPH) 


 
--  Q2 2013 produced revenues of $1.9 million and 35 new customer
    placements
--  2013 guidance revised to $10-11 million in revenue and 150-200
    customer placements
--  Gram-negative blood stream infection panel and enteric panel set for
    submission to the FDA in Q3 and Q4 2013, respectively

  
Nanosphere, Inc., a company enhancing medicine through targeted
molecular diagnostics, today reported financial results for the
second quarter ended June 30, 2013. 
Operational Results and Business Guidance 
Second quarter revenue was $1.9 million, compared to $1.3 million in
the second quarter of 2012. The 38% year-over-year growth was driven
primarily by sales of the company's FDA-cleared Verigene(R)
Gram-Positive Blood Culture Test. Nanosphere is revising its 2013
revenue guidance of $13-15 million down to $10-11 million. 
The Company achieved 35 new customer placements in the second quarter
of 2013. This year's placement guidance of 200-250 is revised to
150-200. 
Michael McGarrity, President and Chief Executive Officer of
Nanosphere, commented:  
"We are lowering 2013 revenue and placement guidance to better
reflect the extensive implementation process that our customers
utilize in validating our Gram-Positive Blood Culture test as they
adopt this significant change in diagnostic protocol. We are
encouraged by the following indicators that confirm we are building a
footprint and foundation for a sustainable revenue ramp: 


 
--  our customers are generating clinically actionable results throughout
    the validation and implementation process;
--  the data generated and published by these customers confirms the
    accuracy and performance of our tests in earlier disease detection,
    optimal patient treatment and improved healthcare economics for one of
    the most complex, costly and deadly disease states; and
--  our investment in and focus on streamlining the implementation process
    will serve to accelerate our revenue growth in the coming quarters."

  
Mr. McGarrity continued, "We expect this momentum to be further
bolstered by our gram-negative and gastrointestinal enteric menu
additions, each on track for submission to the FDA in 2013." 
Costs of product sales increased to $1.3 million in the second
quarter of 2013 from $0.9 million in the second quarter of 2012 due
to increased volume.  
Research and development expenses in the second quarter of 2013
decreased to $3.1 million from $4.7 million in the same period of
2012. The decrease was driven by reduced spending on development
goods and materials, and the capitalization of raw material inventory
that was previously expensed. 
Selling, general and administrative expenses in the second quarter of
2013 increased to $5.1 million from $4.2 million in the second
quarter of 2012. This was due to expansion of the field sales and
customer support teams, as well as clinical trial expenses supporting
the Company's expanding pipeline. 
Net loss for the second quarter of 2013 was $7.8 million, compared
with $8.4 million in the second quarter of 2012. 
Cash flow for the second quarter of 2013 was positive $7.6 million
including a $16.5 million increase from financing activities and $8.8
million decrease from operating activities. Cash at June 30, 2013 was
$32.0 million. 
Conference Call and Webcast Details  
Tuesday, August 6, 2013 at 5:00 P.M., Eastern Time
 Domestic:
888-713-4205
 International: 617-213-4862
 Passcode: 74181181 
Webcast: http://www.nanosphere.us/page/investor-overview  
Replay: Available through August 14, 2013 on the Company's website or
by dialing:
 Domestic: 888-286-8010
 International: 617-801-6888 
Passcode: 27570830 
About Nanosphere, Inc.  
Nanosphere is enhancing medicine through targeted molecular
diagnostics that result in earlier disease detection, optimal patient
treatment and improved healthcare economics. The Company's versatile
technology platform, the Verigene(R) System, enables clinicians to
rapidly detect the most complex, costly and deadly infectious
diseases through a low cost and simple-to-use multiplexed diagnostic
test. The combination of this innovative technology and Nanosphere's
customer-driven solutions keeps commitment to the patient at the
forefront of its business. Nanosphere is based in Northbrook, IL.
Additional information is available at http://www.nanosphere.us. 
Except for historical information, the matters discussed in this
press release are "forward-looking statements" and are subject to
risks and uncertainties. Actual results could differ materially from
these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, the
following: (i) Nanosphere's ability to develop commercially viable
products; (ii) Nanosphere's ability to achieve profitability; (iii)
Nanosphere's ability to produce and market its products; (iv)
Nanosphere's ability to obtain regulatory approval of its products;
(v) Nanosphere's ability to protect its intellectual property; (vi)
competition and alternative technologies; and (vii) Nanosphere's
ability to obtain additional financing to support its operations.
Additional risks are discussed in the Company's current filings with
the Securities and Exchange Commission. Although the Company believes
the expectations reflected in such forward-looking statements are
based on reasonable assumptions, it can give no assurance that its
expectations will be attained. The forward-looking statements are
made as of the date of this press release, and we undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. 


 
                                                                            
                                                                            
                              Nanosphere, Inc.                              
                          Statements of Operations                          
          (dollars and shares in thousands except per share data)           
                                (Unaudited)                                 
                                                                            
                                                      Three Month Periods   
                                                        Ended June 30,      
                                                       2013         2012    
                                                   -----------  ----------- 
                                                                            
                                                                            
REVENUE:                                                                    
  Product sales                                    $     1,852  $     1,315 
  Grant and contract revenue                                 -           30 
                                                   -----------  ----------- 
    Total revenue                                        1,852        1,345 
COSTS AND EXPENSES:                                                         
  Cost of sales                                          1,269          884 
  Research and development                               3,092        4,716 
  Sales, general, and administrative                     5,129        4,196 
                                                   -----------  ----------- 
    Total costs and expenses                             9,490        9,796 
                                                   -----------  ----------- 
    Loss from operations                                (7,638)      (8,451)
OTHER INCOME (EXPENSE):                                                     
  Foreign exchange gain (loss)                              (1)          (1)
  Interest expense                                        (213)           - 
  Interest income                                            5           13 
                                                   -----------  ----------- 
    Total other income (expense)                          (209)          12 
                                                   -----------  ----------- 
NET LOSS                                           $    (7,847) $    (8,439)
                                                   ===========  =========== 
                                                                            
Net loss per common share - basic and diluted      $     (0.14) $     (0.19)
Weighted average number of common shares                                    
 outstanding - basic and diluted                        56,998       43,716 
                                                                            
                                                                            
                                                                            
                                                                            
                              Nanosphere, Inc.                              
                          Condensed Balance Sheets                          
                           (dollars in thousands)                           
                                 (Unaudited)                                
                                                                            
                                                      June 30,  December 31,
                                                        2013        2012    
                                                    ----------- ------------
                                                                            
                                                                            
Cash and cash equivalents                           $    31,963 $     33,139
Other current assets                                     10,097        8,637
                                                    ----------- ------------
Total current assets                                     42,060       41,776
Net property and equipment                                3,278        2,872
Intangible assets - net of accumulated                                      
 amortization.                                            2,571        2,733
Other assets                                                337           76
                                                    ----------- ------------
Total assets                                        $    48,246 $     47,457
                                                    =========== ============
                                                                            
Total liabilities                     
              $    16,451 $      5,225
Total stockholders' equity                               31,795       42,232
                                                    ----------- ------------
Total liabilities and stockholders' equity          $    48,246 $     47,457
                                                    =========== ============

  
Contacts 
Investors:
Roger Moody 
Chief Financial Officer 
Nanosphere, Inc. 
847-400-9021 
rmoody@nanosphere.us  
Michael Rice
Founding Partner
LifeSci Advisors
646-597-6979
mrice@lifesciadvisors.com 
Media:
Lindsey Saxon 
Director of Communications 
Nanosphere, Inc. 
847-400-9173 
lsaxon@nanosphere.us 
Geoff Curtis
Edelman
312-233-1253
geoff.curtis@edelman.com 
 
 
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