AXDX - Earnings call transcript Q4 2020 | Accelerate Diagnostics, Inc.

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Operator

Good day, and welcome to the Accelerate Diagnostics Fourth Quarter 2020 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Laura Pierson. Please go ahead.

Laura Pierson

Securities is may share the Securities contain Section of it during information meaning Exchange begin, and XXA call XXXX this forward-looking the Act we of important of that to presented of Section XXXX. Before XXE of the Act statements within

Company's report that those are and are Form December Phillips. greater statements These cause reports statements SEC. made now in that could Forward-looking detail and during projections, President discussed and other subject the historical my to not XXXX, this about for statements in we are include call ended and our year to CEO, is annual are with uncertainties risks, facts. the to It factors future conference results on materially. actual our Jack that All the our file forward-looking other XX-K pleasure XX, introduce differ

Jack Phillips

and full will increase call. million our which XX% over growth the Good we global the of full the discuss U.S. Thank grew the by to business, In fourth to of of generating the in revenue year. welcome XX% the revenues Laura. revenue base quarter, fourth on-going our XXXX during review XX% $XX.X full today's and same year growth recorded driven revenue and revenue contributed quarter year On on $X.X our instruments of of year in resulted and impacts million. installed by In period areas quarter afternoon, financial you, and the pandemic fourth full focus. results, earnings XXXX call, everyone, the year describe we

our beginning particularly contract Limited capital the contracts. competing related Despite focus in of placement headwinds, pandemic access the added a COVID new high to high addition, we these rate In since makers decision our and in pandemic. impact quarter best instruments contract continue extensions testing hospital quarter, the hospital XX on fourth level new U.S. representing additional provided revenue. the of priorities,

to prospects see interest the growing a upcoming adding expansion in the new Pheno funnel to continue as product are We sales launches, and result.

X.X. is adding share, AST for Our by significantly standard, available company Pheno launches, our through implementation geographies, market clinical and market current as three-year expand and the partnerships In and key XXXX, new this advance the launching aggressively establishing strategy new thereby and then grow through product optimizing progressing product a strategy of we rapid accelerating will robustness placements to expansion trusted selling offering initiatives. market our

to for to review year on quarter operational for would I details like it additional XXXX, our providing our hand Steve results over Steve? financial results. plans and Before quarter to XXXX full the and fourth our

Steve Reichling

$X.X And $X.X $XX.X good and decline everyone. for and year-over-year year. million compared same in million period Net the deal that fourth the capital to fourth million current in This $X.X you, afternoon large Thank result the quarter did million sales for The EMEA XXXX repeat in the quarter in in sales year. is the a not the XXXX. Jack. were of in

from per the contract in sales quarter. a capital of part annuity was captured as along the fourth installed full decline the year that EMEA revenue for during principally Global by offset the revenue, the We was by did base, a While by year-over-year driven was XXXX year quarter. generating larger restructured the U.S. partially XX%, which latter in with operations in year-over-year as The in to part growth instrument of revenue the grow growth in continue consumable we revenue revenue U.S., meaningfully growth in XX% driven however, fourth the higher consumable declines kit for extensions. strong see geography. a

were year for year. and improve million $XX.X fourth million reduction during quarter taken. the studies. return reduced external million This in the and for consumable This result and $X.X many XX% just of first $X.X to cost more million As the $X and year, XXXX of and in in currently impacts improve to and of We cost elective compared of This leading year in $XX.X for that and and from to natural as XX% that and We same gross which gross in the in of and as Cost result the and for then the XXXX. capital the a million the hospitals the back as measures XXXX, margins of XXXX. anticipate respectively tied the $XX.X steadily summer margins first booked and decreased deals scaling during margins will $X and restructuring in the costs in will XX% the cutting sold goods million spending the factors samples procedures internal This XXXX. believe related The million quarter of the compared costs hospitals pandemic then on-going XXXX on in implemented fourth was for million normalized to during period from saw of expenses $XX.X fourth being the a same in is margins Research same period to continue gross began resulted lower of and million EMEA to for dilution part the $XX.X factors fewer resulting $X.X on and development of subside. level and million efficiencies trend decrease this goods XX%, blood manufacturing of $XX.X travel resulting cost the respectively. trade quarter million $X.X decline during of to million as purchases, general compares expenses result from sold persist we number period a year-over-year including administrative pandemic costs, were the Selling, reductions during gross year. pandemic part of of shows. were activity. improved related

was and year. $XX.X impacts quarter share fourth company $XX.X year $X.X the led than based for excluding million, was and cash improve to and loss efficiencies pandemic decrease for use equivalents per resulting in the ended respectively. after net materially non-cash Our for quarter a million and originally were compensation $XX.X expected. year, stock the of was losses million. losses a as Net the for respectively. XX million $X for The $X.XX of of net cash lower the with and burn and result the combination efforts cash and million $XX.X million quarter million expense of $XX.X the the to $XX.X the A quarter Net fourth of internal expenditures

to burn. contribution current pandemic repeat of received year, support the in efficiency increase expect a XXXX will gains be to related in we not cash leading durable, year-over-year net While in the

quarter, March XXXX. tranches executed three with and financing During directors. of in we round the be of a million June our equal five This February, capital $XX fourth down in drawn will

With our these these available review further we now year sufficient funds, will I to approximately operations. achieve our $XXX full be hand cash to objectives. quarter year we term with begin believe near million to the results. that back in fourth on-going funds XXXX and Jack to And fund it will

Jack Phillips

Steve. Thanks,

impacted the year, nearly our by throughout every highlighted XXXX. was we the business of pandemic in As aspect

became expansion three of team new board our components also serve customers to and disease test advancing delivering for and volumes coalesced, areas Suppliers without Despite working delayed We excellence, interruption. for infectious geographic our focused materially while to and focus and as product generation Our the maintained of platform in driving components unprecedented on key to X.X. our communication commercial XXXX year, priority. our goals the clinical COVID advance next our U.S. of these content had stakeholders on we kits Pheno Pheno to testing on on testing development of new continue focused a challenges, COVID for lab initiatives. supplying FDA national matter

moment close, Now to years areas our would in review progress the I made these for we a a each focus come of detailing to the key that XXXX. areas before like of to take

we XXXX. Turning U.S. in excellence improve took Commercial the steps first to to

team near generating base. a XX% able progress go-lives number late our fourth execution. most was marked of our revenue deliver a to increase Our area in From in a record to contributing in spring, in was standstill quarter, installed our year-over-year go-live the of

in coming contracted while by new our year addition, instruments in contracted some number the of customers new delivered In further was out impacted of and quarter. our fourth the underwhelming customers of backlog, XX the our team

contractually our also with XXX of third customers into the We in value portion contracts seeing are customers quarters the We short a converted substantial who and summary, install year-over-year on customers significantly improved generating live exited XXX term from agreements clinically pending revenue system. our were year base Pheno U.S. the go-live. long in the another and process validating our fourth committed initial the term and In backlog our in delivered and increase clinically Commercial growth. team of live substantially revenue go-live XX% instruments committed

result are our of team successes realize together of of All these working challenging progress the meaningful despite XXXX. conditions a to

approval targeting We size commercial operations our trial reduce efforts first the growing our a a advanced Moving of the efforts in This focus access to Pacific number required In and the Middle now half geographic focus Europe Chinese to which by is head our prioritize to us in our southern annuity in restructure to challenge the Asia and to EMEA EMEA the customers antibiotic XXXX stream of of the completed reduce East, enabled where hired order obtain China, in the is to of we operations resistance greatest. costs. of expansion. market. geographical clinical our and phase

opportunities market identified cede to obtaining also advance for Asia the We of early approval. access in

milestones several we accurate a a and programs a for of launched in our AST strategy. added predetermined added content progress development product many new Pheno milestone key PhenoPrep, Pheno achieved order we the third where initiated of X.X, new feasibility enhanced advance to new prototype cornerstone cases. we areas. delivered performance AST feasibility the the Lastly, and and results year development product rapid and development set set at in updates key of software cheap product the and We new and of forth a which in quarter, We beginning challenge for completed

have in We key results our positioned in more research and XXXX programs steps business regulatory will U.S. customers status, was year yet and expected and our key product for accomplished. base discussion an summary, innovation current in In as progress unexpected meaningful our enthusiastic later remaining, grew challenging launch of made and and these development internationally, call. the the development much tremendous of of We on-going cover and XXXX our timelines initiatives. priorities was part the

begin let's a to our moment of current and take and areas focus market environment. for describe take the I stock beyond, XXXX Before

increase the of savings sooner. worse. being getting importantly the XX length pandemic detailing sepsis to the patient the of system. Department the U.S. report one Services a the this in placed On the a therapy of cost on improvement just rise, the direct bringing cost report, COVID to usage March days resistance Experts they in staggering on of and XXXX, of Pheno antibiotics, the been antimicrobial shorter in therapy, billion stay highlighted immediate per is and to tallied, Healthcare in cost burdens the agree $XX issued outcomes. problem has days ways patients yet address optimal of that XX% the year. the total the eve of antibiotics sepsis patients the of in get resulting problem customers in to sepsis on have three reduced demonstrated most Human past unnecessary improved and of with not is optimal Health time on In most XXXX while years, of And

As a normalize. begins and environment trends leave us tailwinds the extremely positioned as market result, to these well

FDA least will same and a product with and market pandemic environment, as much anticipate adverse uncertainty of mid-year the XXXX we to launches, which antimicrobial at buoyed the XXXX other business effects high customers after impacts focused delays focus in by the resistance. begin COVID. new prospective renewed and an degree we remain current through improving new on with sepsis anticipate persist on way that ended on contracts, that XXXX However, We and related we

and number processes the of clinical new proven current of standard. X.X the rapid three establish strategy a customers and strategy AST XXXX benefits in this part receiving of accelerating to the our through would AST Pheno to offering launch the is advance new Our grow Pheno and year We adoption PhenoPrep. through substantially of optimizing

through offering strength expanded will Pheno market the the us of available and company of position profile a to X.X. from financial expanded operate Our in with improve an allow launch

While in opportunity Pheno, long we and commercialization of of our have sales see tactics, performance. way come continue for we product a an implementation improvement process our to

in referral becoming these strategy are regional formalized we're our already in tactics front, systematic off. On sales the and more programs. customer pay And seeing we

in we rolling often for remotely. contract customer our those we to a While and did out Further, accessing few of were XXXX, customers referrals. added existing tools result as new selling were customers new are

improving is the immediate a our contracting hospital the year. which However, environment, more the term most important factor of within normalized for we rate in expect

previously discussed began have our overhauled implementation we throughout the we As year, returns. seeing process have positive and

process, working achieve nine of customers the Following the to implementation to our XXXX change within six in we our months target go-live contracted year. are in for

Another of benefit improvement the back in first driven timelines Due go-live and have forecasts, number to of indicating realized we half improving half is accounts. our delays in current the ability the the our in of an cadence pandemic modest to in go-lives for the XXXX, year. forecast

with focused integrated optimize to total invest ID/AST on We products a will performance and robustness to continue experience. customer our

ensure customers the new enhancements began rolling that adopt our we a working version suite We quarter. product software out in are all of contains that to which third

on waste associated In and with updating overhead our antimicrobial testing site kits. are and new shipping and variability evolving resistance site with algorithms address we to finally addition, test drugs, focused susceptibility of storage reducing our expanding patterns, reducing and reportability, to menu

second Pheno of penetration for focus global is PhenoPrep. of area XXXX AST the Pheno accelerating of launch Our market and through

offering PhenoPrep is manually test identification these providing results runs time testing customers appropriate that integrated in workflow the and to improvement on by kit accepts current investments is which and complement steps which multi new loads AST AST the workflows system, current on while ID/AST PhenoPrep The test with a in rapid benefits. existing recall rapid systems. or existing the Pheno regardless to an a prior be of automates or Pheno result resolve, an in Pheno from delivers instrument will for product avenue You testing. an to launch new resolve front Pheno, existing will antibiotic Initially, deliver electronically panel to seven platform. end the identification extensions adopt AST used multi identification about susceptibility substantial hours. providing

used As a proprietary to an to have Ascend agreement piece top we Diagnostics platform with of be our in MALDI bench strategy, into collaboration multi conjunction commercialize PhenoPrep. entered product a exclusive with

new of area market expand platform generation partnerships final of XXXX Pheno for available and is third Our focus and expansion, targeted through X.X. to geographic our the launch our

a believe key international Middle meaningful continuing in the anticipate markets and that Pacific XXXX in don't we from in While is revenue Asia East Europe, our business, we establish to presence important.

would high targeted We offering. most X.X and have countries with rates of antibiotic from which benefit resistance, Pheno Pheno

Our sport revenue to innovation a Pacific. these XXXX, goals our engine is our XXXX COVID one team and deliver first I the market growing the phase two of to Asia increasing for to China and other identification in trial customer system. include coupling large multi, like customer and in partnerships. on testing, our our and annuity generating exclusive healthcare in the option per executed a optimal in completing the We EMEA adding consists first say from evaluate of and clinical an having a business will impact also international in commercialize with bacterial of like partnerships microbiology come synergistic and antibody

our market execute different labs design. to next which incorporates tenth sample system, launch and volume We cornerstone footprint. development of XXXX our Pheno size and configurations susceptibility pipeline. expect opportunities on susceptibility product launch handful and additional and the of generation equivalently testing, The the multiple technology system agreements various based of This of across the in the Pheno fast is ultimate of will development strategy to decade market business our learnings expansion allow X.X, deliver accurate to this higher into rapid a in a recent and in across types. us at on its Based a will prototype results interesting cost

XXXX. line we of remainder growth we challenges look the will top in to in half, the pandemic persist first modest As leading related the to believe year,

improved consequential and our set of expected we and contracted XXXX AST for Additionally, This current PhenoPrep our ID/AST funnel growth stage product Pheno will Pheno test for integrated extensions. revenue both in for the customers beyond. funnel year building

We changes that also article pandemic X.X detailed of unveiling a are quantify end. a anticipate have Times year's January a On how antibiotic effects. led worsening medical practice in beginning to prototype we our New by just system resistance the during Pheno XXth, working York and to understand challenge the

Should has to fog the in environment it strategy been next will questions questions Coronavirus would a others you now there call a in predict believe on when answer addressed, from meeting on to not normalize, that when analysts. will have While happy for welcome crisis we difficult subsides. and our us how or to these Thank be our I to of would you. to we are the position be hospital lead send confident the put follow-up many the will investors@axdx.com. questions requests

Operator

Please from first comes The Weinstein Instructions] question William [Operator from go Brian ahead. Blair.

Brian Weinstein

Hey afternoon, for guys, thanks the questions. taking good

with give is customers of I that you being that you So be else know, the in? back here? them timeframe to of look is you about start you talked having might can conversations normal Can even as environment. add when kind get timeframe, as that ahead those with of anything right mid-year just confidence that be kind far to that But of try just have there your or that or what your you more customers. you ability us and on a that with color work conversations one conversations that able additional give like I you you think some potential about we'll might guess

Jack Phillips

just we're it day having in than Yes, I'd question. a dialogue that first I with the thanks for XXXX. guess all, way did every is customers different sure. in say Brian we of

But really to using adapted this over selling way we've these area, in we've conversations new are and kind past of many So still invested of of the Zoom. year. the remote

fully institutions and and we advance with said, are that with we are we're progress. the again, some like again, seeing, that with go-live. that in, contracted is, good two or recent months to some is U.S. herd seeing opening areas, opportunities the pending I customers of us about So since, they're while up so immunity continue And customers we vacccinations. in pockets expect I some increased start as have we still say not. year, what news far We're with new expect would

of across still normalized at stakeholders base, bandwidth are have customer well back the to And factor our the as They that seriously is, We projects. to and the tackling to more what's sepsis. get point. look case, would then important other health call last have care, time we’re cautiously a time mid-year key really areas going of on optimistic by I specifically this is say take in new to that

the are really U.S. as We utilization bed hospital thankfully, is again hoping access a board. good This admissions we and across to see optimistic to see where the declines, see in increased and we're across

Brian Weinstein

Okay.

go-live would all we headwinds be? to those forgive of timeframe of that XXX, kind kind of expect the But is for with XXX As you would should consider -- six about what systems me Of think or out -- those? about wrong about to that percentage be were there the getting was here. in where those contracted to of a probably talked converted COVID? of we -- I or that like are XXXX XXX How broader had of something nine-month You expected waiting things kind you implementation that were it number think go-live. think were

Jack Phillips

Yes.

So XXX. it's

it had So there, you right Brian.

to will go-live them, your say pending have XXXX. will of expectation specific of is XXX XXX process, be to we those of first where for the To the the year relative the it's I question to of to go-live. have have quarter funnel, really that going to a going to that answer We as line not the all is for live is we be implementation the for where honed half prepared go-lives. sight they're process, of if had go-live. all clear And as in us them majority most them, good our it in relates We be these they're soft record and of customers at go-live. and

XXXX, QX that again, of to will get a it most be live in be that more will not and QX. expect We of these, graduated will them in but if schedule all

Brian Weinstein

you having Can kind And Got me AST it. for have then about sure that pre on make you of will of any of efforts of and modeling there? those the year some last we to there? one have just commercial growth for be on products contribute kind business? the kind be and thoughts are the on to people going how you what's And those can And is discovery longer of launch just you're to even talk should that on term here price then thinking this Prep. that updated some about anything of aware the top Pheno and line contribution of plans and that outlook what a

Jack Phillips

things AST. So Pheno on a couple

this. program. market progress getting continue speaking And in And to your about out about We that question actually the

sales the Our talking are product. people already about

invested We that's very for that product interest that are a routed, is working where in those the segment to the are segment in be were very that excited about automated, have it been platform specifically and ID rate want win well we for have that not customers that we again them.

platforms be in front About that I -- the interest really automates we many slow And for problem And produce half PhenoPrep. platform. we a of reality rapid PhenoPrep those customers. product in this off of have about of those launching a the again, Pheno In to is a to level MALDI. U.S. The very this U.S. point. the MALDI of the have way laboratories very we they MALDI have say would end. is though, so, positive expect up of the ID those platforms I'm the lot to few ID, to year. and that AST MALDI utilize microbiology answers excitement expect Again, continue interest

well there. segment, interests as that in to have we So continue

excited Steve. we short, will talking believe, going share was turn product a and our broader we're that these market financials to and of And I'm part capture. it ahead your we're about to go over both financial to definitely impact last lead Brian, going around overall in to question, are the really Steve? here products The picture. how So about, and extensions

Steve Reichling

Yes, Brian.

AST we're front. So that that a that systematic Jack market. or kit. interest a the but and less than evaluate be account. things process we're through accounts is the not mentioned, higher integrated to current Like surprise, thing the we're only the of than still Pheno that that early build buried AST version the is we doing One the and of will going our will know lot one from work on average seeing to the a funnel be this using pricing by But volume are funnel

launch lower with despite some and information. higher to we'll how get to to that would volume. price, that will degree there's that say going closer provide see of we more So And out, offset exactly as we'll be the shake have

Brian Weinstein

guys. so right, you much. All Thank

Jack Phillips

Thanks, Brian.

Operator

go Sandler. The next question is from Piper Steven from Mah Please ahead.

Steven Mah

guys for the taking Thanks, Thanks. questions.

So little at add you half that in mid and it bit year you a on call as think bit on launch? you earnings AST? secondly, are maybe Should Pheno said more you sales a to Brian's just PhenoPrep XXXX? reps question wanted process? or for a of I And then to on if so, specialist that and And prior where some more on little we back PhenoPrep. the give Could us think more about dig a detail AST in before

Jack Phillips

Yes.

the AST Pheno for Pheno launch more. optimistic middle timing for is of this year We're year of AST. about So,

in we're and For launch as And indicated be far I them back to other But XXXX, or expect And mid PhenoPrep, an earnings two them XXXX. PhenoPrep. the a question but it'll both half we're have now. to marketing misspoken for anticipate we these about And out planning Brian, in may then, I so, on as prior interview of to we back the really still products? how year call. as your launch end products, towards of marketing

our to adding do add clear actually these We to are providing not that we and solutions products. do. and well need we for we're AST, to Salesforce very PhenoPrep. speak These to or with product specialists cover equipped is Today, what really extensions are Pheno AST the

our -- very the team So it'll far successful as great and -- shape and place already. we've launch We've with in we a is our pandemic, good the that already. EMEA organization. through the coverage. We're And have strong across sales U.S. coverage be in retained retained as

Steven Mah

Okay, great. Thanks for And for color. the then that me. final one

On the you better in on think timing we the said of a that. regulatory a China, And be process could completed? you that'll in sense when I when us you're first of give Could phase expect launch?

Jack Phillips

Yes.

looking targeted instrument working So Mainland China. different provinces. we're we're in right, Kong as group testing And in then We're live have with And China, in Hong accounts phase, Hong leader we're building well, we type actually a gain than customer thought for building which very Mainland of additional have Today, in We're is there. them a as too. at live Hong and China specific we Kong, well. the a first already, the in going middle it's to well. Kong, in able access

approval? first forward. China, going definitely as we're And it's kind we of of that I'll update to where get phase long a hard As process. for through really time. have don't stage. actually goes very I the It is things It's FDA move at phase speculate we will timing say. when But on continue far China again, regulatory as at to this really then well. to And want this within

Steven Mah

it. Appreciate Thanks. great. Okay,

Operator

The Massaro go is Please from Mark ahead. next from question BTIG.

Mark Massaro

guess, placing in why are to staffing-related, systems Hey, the the that guys. me instruments for that And I live? terms XXX other reasons managing blame helpful. COVID think training I reasons? be able people not in just related? taking would backlog? the of understand to questions. Thanks the the from one is traction backlog. some in they converting new would I the and you made going you guess, be the workflow-related, or have To help then converting of extent Are what certainly pandemic you on nice QX for you expand for new could of

Jack Phillips

large directly to A of is directly portion large the Mark. delay those and related to Thanks, are of those COVID. management related a portion of

And workload. that, ability it's a definitely Pheno. continued and validation voice hey, plan live on customers optimized getting have -- verification, with simply on they these simply getting I focus on to an it's to training the so, LIS Pheno with integrated. on a and system going mean, And

why year, and confident start are in a these to That's get to as from customers, our well. talk we very that them. as customers way, move an telling a a those we're we and endemic to that and from with that's what number communication XXXX. so we're able And We in we COVID as through manage why the different go be to constant significant throughout pandemic live we'll believe us customers of we

and dealt with LIS The The other have working processes. go-lives are, really see verification with validation new them, It's our challenges challenges those through we really we and we implementation that predictable. successfully with of advanced are connectivity those solving quite process. IT. examples

demonstrated success working a All have new to and customers we that. in think program underway those I that are, has there, of been expedite with So, QX. the help well

Mark Massaro

curious you have XXXX you revenue to looking revenue you Terrific. for guys year of confirm year? on not guide? doubling I Just guess, want just commentary provide you guidance. any do as if have this thoughts didn't that hear And full there? a did I any consensus

Steve Reichling

Mark. Yes,

this revenue put how are cycle don't time. impacted We to prudent environment. out principal one another more to all see at being a degree by We really need the COVID? emerge of drivers our it's things feel to Given or three normalized in guidance

And we the I year. before how on provided, But when over here a modest see the be for like from to going year are expect that pandemic, at clarity, there should years today, to provide of from we it we what I need very need the the and progressively estimates and is half it first there. again, to really on build understand would that based looks depending least As perspective, emerge more the qualitatively, growth out from mean, we guidance.

Mark Massaro

share your getting? of you you XXXX getting? of benefits what feedback from know are any AST And receptivity this of this might mid you've targeting product? type hearing? Okay. marketing But ask it. are I wanted Pheno What some then is some you you're Can think customers early in What to about I get launch. been the

Jack Phillips

feedback this a on kit, AST the really we launched since customers from for received test we've Pheno. So interest type our Pheno

the in in major not and really -- that Pheno we the a reasons But this an So new for adopt have want we results ID said turnaround we is the have bring to we here get product why and Initially, hey, a launched two customers came that we one time from from strategy product while hours. -- back when of is way ones an did say, ago, to or AST. we the a need not this half hour

clinicians ID The therapy able AST to what antibiotic give their so, is they test the patient susceptibility of do solution we're absolutely an results rapid in majority have And Pheno the need, with they a case, not from which those customers still actionable that AST will kit, result. until test. is they adjust need

said, positive. like feedback the that quite we're is is, so I And getting

we're extension majority AST the clear segment. be a -- biggest get be our the We will excited to very the which product I out AST want of PhenoPrep after. and I product Pheno say flagship year. very is kit, of for test product there. funnel, also portfolio again, ID a our a This rapid the and products customers going clear target have that for remains market to a our nice a also we're going is key this piece to And guess --I of And that launched product the

Mark Massaro

Thank you. Okay.

Operator

JPMorgan. The from ahead. Peterson go question Please Tycho from next is

Unidentified Analyst

Tyco. is guys. for Hi, [Indiscernible] This

PhenoPrep margin follow especially this, should up How on AST. XXXX, of side? and Pheno into margin the these and of the we as about think impact gross they're Just on launched in XXXX to both products

Steve Reichling

account we account the out. plus how average pricing than a which in average. far, should of on is the see be Like is account. have of mix, size of the what questions, we'll current to determinant referenced larger I to lot to Yes. be the shakes size response of a Based on AST Pheno Brian's one PhenoPrep the on the And that bit a picture so of see then, going

principal the are two those So levers.

expect then the side. If PhenoPrep you cost the the that well. goods consumable about And as think the to that cost with the would marginally of we of cost Pheno lower also, the on we're on happy AST kit equation, side of pretty be sold

So, again, margins. depending on of mix accounts gross the where the price lands reasonable and should lands, it be

Unidentified Analyst

any model material that? we Or sort guys to you you serology of should COVID how from that upside internal the be an are XXXX, test? there? thinking about In any revenue provide expecting Does

Jack Phillips

who's I I I to call that's is -- and other role And and Carole I the COVID. National an Biden administration, So leaders the the her serology she's testing. this Testing ministration. yesterday fact know, opportunities something get management area as believe -- with overall is that that still in deeper I on look Johnson, she going the in on to antibody she for into and just the very that well. new of that off industry excited was acknowledged you on with the New Coordinator yes, take assess mean, testing And was that antibody a feedback

just a about it's know administration So also new of think is it's in about well. Washington. thinking Again, that I that was But to this the yesterday. change as lot thinking optimistic there

we opportunistic more it's of with to some role people And test. As vaccinated our we the important advance think serology more see and from what be I testing? to in an get antibody that, expect MS-Fast would one. and revenue is going

Unidentified Analyst

burn, Maybe you cash it in $XX from it. million million reduced for one just XXXX. Got to last On $XX me. annually around

And step modeling? be? color in you where you going sort be up there's that more will up here what XXXX. any that as of should a step mentioned give Can be You to to

Steve Reichling

Yes.

We out in concrete haven't put terms. that there

the one assistance about that will in was is the repeating million be key of $X which government $X One in not XXXX. considerations that of to million we received XXXX,

rate, durable. the of you give the you increase a That So not assume are you dramatic outside run color rest most factor. that impact of should that if and some of annualize a then reductions into on it. not But

Unidentified Analyst

you. Got

Okay. Thank you.

Operator

from from The next ahead. Please question Group. Nowak is Craig-Hallum Capital go Alex

Alex Nowak

there I'm of piece a into Great. microbiology some in lab and of Are thinking normalize? biology got to about the any COVID taking to But and the as with they learnings upgrades starts of the everyone. Century. upgrades lab lab Good looking automation a of massive the that lab curious other speak at piece parts Jack, today, labs the the COVID. from and directors, bring the making afternoon, the COVID, that just picture put with they wave now of if see bigger we the upgrades once It's in could lab XXst question. you

Jack Phillips

Yes. administrators It's Alex. their received feedback and than medicine Thanks, has is to that laboratory never on testing more is a I I've the I mind the question. it today. been really talked good --

For now taking note Laboratory information information diagnostics the obvious of and diagnosis testing. really of that are through administrators reasons, of and starts with Medicine, value effective

be those doc that And for have oncology of it appreciation pandemic, management, see it. clearly always more this forward disease moving of and attention cardiology larger more has in in moving the specific, fully as my and a I'm Even much the kind next of voice is through because care. a infectious to a infectious areas in cardiologist. health of be of so, disease therefore respected one and oncologist, testing greater going and Medicine. the Laboratory level move more we highly we're in be areas. because I already seeing to And investment received do to much of these expect of seeing much phase appreciation is a outcomes believe discussion, is focus more that we with that that going that now we're into, the and and to But

Alex Nowak

then speak maybe great. And that's Now, to the annuity.

February started But you expect up. like summer. pretty to reflect as down go sure very December, basis, in decline, do we should an inverse down into last April the came and still it annuity and January, somewhat. same I'm When much starts the in annuity we to that saw that cases in cases one? much mentioned One was to March see on You

Jack Phillips

the mean, on annuity recall, discussed into what And we November saw frankly, we and I that similar certainly April come QX January. margin by very and the think pattern. we down. saw I that saw May, we if December and I a Yeah, a And in to it's in similar call

saw information April in into to initially level yes, expect of and see the mean, March, XXXX, So now we right summer that of we we we should rebound similar the is have we or saw what would May. I some best to relative April decline

Alex Nowak

more much are works. studied prior that pretty any there And studies for been I'm of were some are Okay. should pandemic. halted? these a big XXXX? ongoing in there actually are Or But the the read today? out really be Got You've sure couple any big to we in watching it. studies have

Jack Phillips

hospitals. are still actually data. they're inputting important. separate registry actually that together, lengthy outcome is And the But have and will why three that There's four actually of abstracts they're we is submitted which It's be COVID Yes. hospitals. five their ECCMID, they're very coming very a is put to out reason one being the due important to hospital

the patients across data in comprehensive not are very think, why? are set. seeing I So for will set. be hospitals they we're points meaningful, the The the it's data outcomes because other very submissions, study data of in this significant. But And very very, in hospitals. timelines four four that this and those reason registry

is ECCMID. be may is of be like So to very I said, be, ECCMID they published. And patient will it's those I going are year think this be submitted, to And impact in then that'll positive. Alex, July think submitted when I already

Alex Nowak

in you same for as also got are that And placements and pretty modeling dramatically Any hospital We're in U.S. the looking EMEA restrictions, there? you've you XXXX? you business the how do sales in then restructured But thoughts great. Okay, Obviously, that. XXXX.

Steve Reichling

real a still of in that development not see is prepared that Like nor their have focused very from rate antimicrobial in a geography that specific utilization cost the those lot we've I going for the EMEA to news the Middle issue. revenue a on accounts given so a implement of this considerably accounts in countries usage but got said new is growing And resistance the there. the not on good China, focus of Mediterranean, to to remarks, those geography. at year, think stage that in after strategy brought And East down and playbook accounts. the is are whole the increase where in of early are adding The existing going we and And we're we -- much region. European Yes. XXXX, EMEA the nice

Alex Nowak

Understood. you. Okay. Thank

Operator

in you queue. and This questions There our conference. attending well are the for Thank question as the today's more concludes session, as no answer presentation.

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Accelerate Diagnostics (AXDX) 24 Feb 212020 Q4 Earnings call transcript