GNMK GenMark Diagnostics Inc

Second Quarter Revenue of $7.6 Million, Up 17% Versus Prior Year

XT-8 Installed Base Expanded by 29 to 591

European ePlex™ Launch Expected by the End of Fourth Quarter 2015

Full Year Revenue Guidance Maintained at $38-40 Million; Gross Margin Increased to 57-59%

GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, today reported second quarter 2015 financial results.

Revenue for the second quarter of 2015 was $7.6 million, an increase of 17% over the prior year period. During the quarter, 29 additional XT-8 analyzers were placed in end-user laboratories, resulting in a total installed base of 591 analyzers within the U.S. market.

Gross profit for the second quarter was $4.4 million, or 57% of revenue, compared with $3.5 million, or 53% of revenue in the same period of 2014.

“We are pleased with the continued robust performance of our XT-8 business. Revenue, gross margin and new analyzer placements were all strong in the second quarter,” said Hany Massarany, President and Chief Executive Officer of GenMark. “Concurrently, we remain focused on the transfer of the ePlex cartridge to manufacturing. We are committed to bringing to market the highest quality system we can, and establishing the high volume manufacturing processes necessary to support the clinical studies and European launch. We have made solid progress in the quarter and expect the European launch of ePlex by the end of the fourth quarter,” added Massarany.

Operating expenses for the second quarter of 2015 were $16.3 million compared to $14.7 million in the same period of 2014. The 11% increase was mainly driven by personnel related expenses across the organization as the Company prepares for the upcoming launch of the ePlex system.

Loss per share was $0.29 per share for the second quarter of 2015 compared to a loss of $0.27 per share in the same period of 2014.

The Company ended the quarter with $62.6 million in cash and cash equivalents and intends to continue utilizing its cash balances to invest in the global commercialization of the ePlex system.

Business Outlook

For full year 2015, the Company continues to expect revenue in the range of $38 to $40 million. Gross margin expectations for the full year are being increased to 57% to 59%. The Company expects to place approximately 25-35 additional XT-8 analyzers in the second half of the year.

The Company will be hosting a conference call to discuss second quarter 2015 results in further detail on Thursday, August 6, 2015 starting at 4:30 p.m. Eastern Time. The conference call will be concurrently webcast. The link to the webcast will be available on the GenMark Diagnostics, Inc. website at www.genmarkdx.com under the investor relations section and will be archived for future reference. To listen to the conference call, please dial (877) 312-5847 (US/Canada) or (253) 237-1154 (International) and use the conference ID number 87665468 approximately five minutes prior to the start time.

ABOUT GENMARK DIAGNOSTICS

GenMark Diagnostics (NASDAQ: GNMK) is a leading provider of automated, multiplex molecular diagnostic testing systems that detect and measure DNA and RNA targets to diagnose disease and optimize patient treatment. Utilizing GenMark’s proprietary eSensor® detection technology, GenMark’s eSensor XT-8™ system is designed to support a broad range of molecular diagnostic tests with a compact, easy-to-use workstation and self-contained, disposable test cartridges. The eSensor detection technology is also incorporated into GenMark’s sample-to-answer system, ePlex™. For more information, visit www.genmarkdx.com.

SAFE HARBOR STATEMENT

This press release includes forward-looking statements regarding events, trends and business prospects, which may affect our future operating results and financial position. Such statements, including, but not limited to, those regarding the timely commercialization of our ePlex system and our future financial performance, are all subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks and uncertainties include, but are not limited to, our ability to successfully commercialize our ePlex system and its related test menu in a timely manner, constraints or inefficiencies caused by unanticipated acceleration and deceleration of customer demand, our ability to successfully expand sales of our product offerings outside the United States, and third-party payor reimbursement to our customers, as well as other risks and uncertainties described under the “Risk Factors” in our public filings with the Securities and Exchange Commission. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.

GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value)     June 30,   December 31, 2015 2014 Current assets Cash and cash equivalents 32,075 36,855 Marketable securities 30,487 33,651 Accounts receivable, net of allowances of $2,702 and $2,702, respectively 3,559 4,889 Inventories 1,966 2,137 Prepaid expenses and other current assets 1,028   575   Total current assets 69,115 78,107 Property and equipment, net 11,821 11,052 Intangible assets, net 1,741 1,870 Restricted cash 758 758 Other long-term assets 182   183   Total assets 83,617   91,970   Current liabilities Accounts payable 4,094 5,126 Accrued compensation 4,081 5,172 Other current liabilities 1,111   1,995   Total current liabilities 9,286 12,293 Long-term liabilities Deferred rent 1,359 1,445 Long-term debt 9,700 — Other non-current liabilities 255   208   Total liabilities 20,600   13,946   Stockholders’ equity Preferred stock, $0.0001 par value; 5,000 authorized, none issued — — Common stock, $0.0001 par value; 100,000 authorized; 42,375 and 41,859 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively 4 4 Additional paid-in capital 347,509 340,502 Accumulated deficit (284,493 ) (262,472 ) Accumulated other comprehensive income (3 ) (10 ) Total stockholders’ equity 63,017   78,024   Total liabilities and stockholders’ equity 83,617   91,970     GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands, except per share data)     Three Months Ended   Six Months Ended June 30,   June 30,   2015       2014     2015       2014   Revenue Product revenue $ 7,550 $ 6,494 $ 17,562 $ 14,360 License and other revenue   96     61     191     108   Total revenue 7,646 6,555 17,753 14,468 Cost of revenue   3,286     3,100     7,278     6,691   Gross profit 4,360 3,455 10,475 7,777 Operating expenses Sales and marketing 3,704 3,379 7,397 6,357 General and administrative 3,662 3,218 7,332 6,151 Research and development   8,924     8,123     17,703     15,393   Total operating expenses   16,290     14,720     32,432     27,901   Loss from operations   (11,930 )   (11,265 )   (21,957 )   (20,124 ) Other income (expense) Interest income 33 74 69 161 Interest expense (245 ) (2 ) (317 ) (4 ) Other income (expense)   (11 )   2     206     —   Total other income (expense)   (223 )   74     (42 )   157   Loss before provision for income taxes (12,153 ) (11,191 ) (21,999 ) (19,967 ) Income tax expense (benefit)   (1 )   19     22     26   Net loss $ (12,152 ) $ (11,210 ) $ (22,021 ) $ (19,993 ) Net loss per share, basic and diluted $ (0.29 ) $ (0.27 ) $ (0.53 ) $ (0.49 ) Weighted average number of shares outstanding, basic and diluted   42,091     41,293     41,934     41,186   Other comprehensive loss Net loss $ (12,152 ) $ (11,210 ) $ (22,021 ) $ (19,993 ) Foreign currency translation adjustments — — 9 — Net unrealized gains (losses) on marketable securities, net of tax   1     26     (16 )   9   Comprehensive loss $ (12,151 ) $ (11,184 ) $ (22,028 ) $ (19,984 )   GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)     Six Months Ended June 30,   2015       2014   Operating activities Net loss $ (22,021 ) $ (19,993 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,632 1,167 Amortization of premiums on investments 126 394 Amortization of deferred debt issuance costs 116 — Gain on sale of investment in preferred stock (223 ) — Stock-based compensation 4,823 2,949 Non-cash inventory adjustments 543 457 Other non-cash adjustments 15 — Changes in operating assets and liabilities: Accounts receivable 1,331 731 Inventories (246 ) 608 Prepaid expenses and other assets (472 ) (447 ) Accounts payable (1,212 ) (501 ) Accrued compensation (231 ) 1,375 Other liabilities   (39 )   (259 ) Net cash used in operating activities (15,858 ) (13,519 ) Investing activities Payments for intellectual property licenses (550 ) — Purchases of property and equipment (2,243 ) (2,626 ) Purchases of marketable securities (14,797 ) (28,200 ) Proceeds from sales of marketable securities 223 7,497 Maturities of marketable securities   17,850     27,450   Net cash provided by investing activities 483 4,121 Financing activities Proceeds from issuance of common stock 427 373 Principal repayment of borrowings (10 ) (46 ) Proceeds from borrowings 10,000 — Costs associated with debt issuance (718 ) — Proceeds from stock option exercises   894     180   Net cash provided by financing activities   10,593     507   Effect of exchange rate changes on cash 2 — Net decrease in cash and cash equivalents (4,780 ) (8,891 ) Cash and cash equivalents at beginning of period   36,855     35,723   Cash and cash equivalents at end of period $ 32,075   $ 26,832   Non-cash investing and financing activities Transfer of instruments from property and equipment to inventory $ 127 $ 113 Property and equipment costs included in accounts payable $ 303 $ 513 Intellectual property acquisitions included in other current liabilities $ — $ 900 Supplemental cash flow disclosures Cash paid for income taxes, net $ 15 $ 26 Cash received for interest $ 196 $ 555 Cash paid for interest $ 317 $ 4

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GenMark Diagnostics, Inc.Hany MassaranyPresident/Chief Executive Officer760-448-4325