Lower COVID-19 Testing Revenues Hit LumiraDx Q2, Plans Cost Cutting Initiatives

LumiraDx Limited's LMDX Q2 FY22 sales reached $44.7 million compared to Q1 2022 revenue of $126.4 million and Q2 2021 revenue of $87.2 million, as COVID-19 moves from pandemic to the endemic stage.
The analysts estimated sales of $53.09 million.
Test strips on the LumiraDx Platform contributed revenues of $28 million, and Fast Lab Solutions' molecular reagents delivered $10 million, substantially from COVID-19 products.
In response to lower COVID testing activity and to ensure efficient use of cash, LumiraDx initiated a restructuring plan to reduce overall operating costs and deprioritize certain R&D activities for earlier stage programs.
The gross margin was 11% compared to 17% a year ago, primarily due to under-absorbed manufacturing capacity as the company transitions from a higher cost base and resizes operations.
The company posted an adjusted EPS loss of $(0.31) versus $(0.40) a year ago and missed the consensus of $(0.26).
Lumira closed Q2 with a proforma cash balance of $206 million.
The company said it is working on FDA 510K submission for the SARS-CoV-2 Ag Ultra 5-minute test, with clinical trials planned for a broader respiratory portfolio this year.
Price Action: LMDX shares are down 4.67% at $1.43 on the last check Thursday.