Nanosphere, Inc. (NASDAQ:NSPH) Announces Record Earnings For The Fourth Quarter And Fiscal 2014

Nanosphere, Inc. (NASDAQ:NSPH) announced it broke revenue records in the fourth quarter and fiscal year ending 2014. The company showed revenue for the quarter at $4.6 million. Revenue for the year ending 2014 came in at $14.3 million. This is compared to revenue of $3.4 million for the fourth quarter of 2013 and $14.3 million for the year ending 2013. The 43% growth on year-over-year revenue was boosted by the company’s US-based microbiology laboratories that continued the adoption of its blood culture BCGP and BCGN tests.

What does the Relative Strength Indicator (RSI) say about future trends with NSPH?

Solid Revenue Growth

The company saw solid growth in its core infectious disease consumable offerings and also expanded its customer base providing leverage that will allow it to achieve strong growth in revenues for fiscal 2015. Because of this the company raised guidance for revenues in 2015 to between $18 and $20 million.

Cost of sales increased during the year to total at $8.5 million. This was due to the added business volume. Gross margins also increased to 41% in 2014 from 36%in the 2013 year. Field sales were expanded to accommodate the sales volume growth and this caused operating costs to rise to $21.8 million. Research and development costs also increased from $18.7million to a reported $21.7 million in the fiscal 2014 period. The rise in R&D costs was attributed to new clinical trials that are related to the FDA submissions for Enteric and RP Flex assays.

Net Losses

The Nanosphere, Inc. (NASDAQ:NSPH) showed a net loss of $39.1 million in 2014, which was slightly higher than the loss of $34.6 million in 2013. For the fourth quarter, losses were at $9.5 million, also slightly higher than the same period in 2013 of $8.8 million. The company added 47 new customers to its current database and those were a heavy contributor to the revenue growth.

Technicals

The stock gained some momentum on the earnings news but is having difficulty taking out the resistance at 40 cents. If volume stays strong it could reasonably make an attempt to break through that level soon.

About the Author

Cooper is a graduated from Buffalo State College in New York with a bachelor's degree in Broadcast Journalism.

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