Benzinga | Nov 11, 2021 07:38AM EST

Cue Health Reports Q3 Profit On Higher Sales, Annual Guidance Above Consensus

* Cue Health Inc (NASDAQ:HLTH) reported Q3 sales of $223.7 million, compared to +63% sequentially.

* Public Sector revenue was $129.5 million, compared to $105.0 in Q2 FY21, driven by additional deliveries to DOD / HHS under the existing agreement.

* Private Sector revenue was $94.2 million, compared to $32.4 million for the prior quarter, led by significant additions to the enterprise and provider customer base.

* Disposable test cartridge revenue was $179.0 million, +74% Q/Q.

* Product gross margin improved to 60.2% from 59.9% in Q2 FY21 due to increased production partially offset by higher labor and material costs.

* Net income was $19.3 million, a turnaround from a loss of $(8.5) million a year ago.

* Cash and cash equivalents were $446.6 million.

* Guidance: Cue Health expects FY21 revenues of $580.0 million - $590.0 million, higher than the consensus of 541.29 million.

* Price Action: HLTH shares closed at $11.12 on Wednesday.