OREANDA-NEWS.  Nanosphere, Inc., a company enhancing medicine through targeted molecular diagnostics, today reported financial results for the first quarter March 31, 2016.

Nanosphere achieved record revenues for the first quarter of 2016. Revenues for the first quarter of 2016 were $6.6 million, compared to $4.6 million for the first quarter of 2015. This 43% year-over-year revenue growth was driven predominantly by U.S. based microbiology laboratories continued adoption of our expanding infectious disease menu evidenced by a 55% growth rate in test consumables in the first quarter of 2016 as compared to the prior year period.

Gross margins for the first quarter of 2016 were 46.3%, and remained flat when compared to the prior year period due to depreciation expense of $0.25 million in 2016 related to evaluation equipment held at customer locations.

Research and development expenses in the first quarter of 2016 were $3.7 million, as compared to $3.6 million for the same period in 2015. Sales, general and administrative expenses in the first quarter of 2016 decreased to $4.9 million from $5.2 million during the same period in 2015. This reduction in expenses was due to the repeal of the medical device tax which reduced costs by $0.1 million, a decrease in equity compensation expense related to the reduction in fair value of options granted in recent years compared to prior years of $0.1 million, and a decrease in bad debt expense of $0.1 million.

Net loss for the first quarter of 2016 was $6.6 million compared with $7.5 million for the same period in 2015.

Cash at March 31, 2016 was $18.4 million, with $5 million of this being restricted cash. Cash used in operations during the first quarter of 2016 was $5.3 million, compared to $5.6 million for the same period in 2015, an improvement of $0.3 million.

On January 31, 2016, the company achieved both (i) trailing six month revenue of greater than $12,000,000 in a consecutive six month period, and (ii) greater than 100 cumulative new unit placements during a consecutive 12 month period after January 1, 2015, pursuant to which, on February 5, 2016, the Company was able to draw a second tranche under its term loan facility in the amount of $5 million and is included in our cash balance at March 31, 2016.