GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of
automated, multiplex molecular diagnostic testing systems, today
announced financial results for the third quarter ended September
30, 2017.
Third Quarter Highlights
- Placed 65 ePlex® analyzers in the third
quarter, mostly driven by first full quarter of U.S. launch
- Finished the quarter with an installed
base of 147 ePlex analyzers in U.S. and European labs
- Achieved revenues of $11.6 million in
the quarter, an increase of 7.3% over the prior year period
“We are pleased with our first full quarter of ePlex launch in
the U.S., which drove the majority of placements in the third
quarter,” said Hany Massarany, President and Chief Executive
Officer. “With strong sales funnels and continued positive customer
feedback regarding the overall performance of ePlex, we remain
optimistic about our opportunity to accelerate our revenue growth
rate and capture market share in the global multiplex molecular
diagnostics market.”
Third Quarter Financial Results
Revenue was $11.6 million in the third quarter of 2017, an
increase of 7.3% versus $10.7 million in the third quarter of 2016.
Gross profit was $4.2 million, or 36% of revenue, compared with
$6.5 million, or 60% of revenue in the same period of 2016.
Operating expenses for the third quarter of 2017 were $18.9
million compared to $18.1 million in the same period for 2016. The
increase was mainly driven by sales and marketing expenses as the
Company continues to expand its commercial organization in support
of the global ePlex product launch.
Loss per share was $0.28 per share for the third quarter of
2017, compared to a $0.27 loss per share in the third quarter of
2016.
The Company ended the quarter with $86.9 million in cash and
investments.
Business Outlook
For full year 2017, GenMark expects revenue to range from $51 -
$53 million and gross margin to range from 38% to 40%. The Company
expects to exit 2017 with 185-200 ePlex placements.
Webcast and Conference Call Information
The Company will be hosting a conference call to discuss third
quarter results in further detail on Thursday, November 2, 2017
starting at 4:30 p.m. ET. 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 89238764 approximately five minutes prior to
the start time.
About GenMark Diagnostics
GenMark Diagnostics (NASDAQ: GNMK) is a leading provider of
multiplex molecular diagnostic solutions designed to enhance
patient care, improve key quality metrics, and reduce the total
cost-of-care. Utilizing GenMark’s proprietary eSensor® detection
technology, GenMark’s eSensor XT-8® and ePlex® systems are designed
to support a broad range of molecular diagnostic tests with
compact, easy-to-use workstations and self-contained, disposable
test cartridges. GenMark’s ePlex: The True Sample-to-Answer
Solution™ is designed to optimize laboratory efficiency and address
a broad range of infectious disease testing needs, including
respiratory, bloodstream, and gastrointestinal infections. 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 our future financial
performance, regulatory submissions and approvals, and the timely
and effective commercialization and clinical impact of our ePlex
system, 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)
September 30, December 31,
2017 2016 Current assets Cash and cash
equivalents $ 27,161 $ 15,959 Marketable securities 59,756 25,607
Accounts receivable, net of allowances of $2,792 and $2,740,
respectively 7,800 9,048 Inventories 7,109 6,633 Prepaid expenses
and other current assets 1,971 1,202
Total current assets 103,797 58,449 Property and equipment,
net 21,586 18,268 Intangible assets, net 2,772 2,670 Restricted
cash 758 758 Other long-term assets 194 179
Total assets $ 129,107 $ 80,324
Current liabilities Accounts payable $ 7,242 $ 8,703 Accrued
compensation 5,227 5,650 Loan payable 19,548 7,935 Other current
liabilities 2,923 4,133
Total
current liabilities 34,940 26,421
Long-term liabilities
Deferred rent 3,225 3,652 Long-term debt 9,918 11,880 Other
non-current liabilities 387 220
Total liabilities 48,470 42,173
Stockholders’ equity Preferred stock, $0.0001 par value;
5,000 authorized, none issued — — Common stock, $0.0001 par value;
100,000 authorized; 54,792 and 46,554 shares issued and outstanding
as of September 30, 2017 and December 31, 2016, respectively 5 4
Additional paid-in capital 483,242 393,322 Accumulated deficit
(402,584 ) (355,270 ) Accumulated other comprehensive income
(26 ) 95
Total stockholders’ equity
80,637 38,151
Total liabilities and
stockholders’ equity $ 129,107 $ 80,324
GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands,
except per share data) Three Months Ended
Nine Months Ended September 30, September
30, 2017 2016 2017
2016 Revenue Product revenue $ 11,552 $ 10,727 $
36,313 $ 34,111 License and other revenue 51
86 184 278
Total revenue
11,603 10,813 36,497 34,389 Cost of revenue 7,400
4,362 21,227 13,457
Gross profit 4,203 6,451 15,270 20,932
Operating
expenses Sales and marketing 5,121 3,223 14,974 10,232 General
and administrative 3,565 3,227 11,553 10,522 Research and
development 10,248 11,628 34,297
37,100
Total operating expenses
18,934 18,078 60,824
57,854
Loss from operations (14,731 )
(11,627 ) (45,554 ) (36,922 )
Other income
(expense) Interest income 247 43 353 98 Interest expense (1,009
) (476 ) (2,270 ) (1,061 ) Other income 76 16
227 7
Total other income
(expense) (686 ) (417 ) (1,690 )
(956 )
Loss before provision for income taxes (15,417 )
(12,044 ) (47,244 ) (37,878 ) Income tax expense (benefit)
(9 ) 14 68 45
Net
loss $ (15,408 ) $ (12,058 ) $ (47,312 ) $ (37,923 ) Net loss
per share, basic and diluted $ (0.28 ) $ (0.27 ) $ (0.95 ) $ (0.88
) Weighted average number of shares outstanding, basic and diluted
54,726 44,377 49,908
43,308
Other comprehensive loss Net loss $
(15,408 ) $ (12,058 ) $ (47,312 ) $ (37,923 ) Foreign currency
translation adjustments 51 (4 ) 145 9 Net unrealized gains (losses)
on marketable securities, net of tax (9 ) 20
(24 ) (2 )
Comprehensive loss $ (15,366 ) $
(12,042 ) $ (47,191 ) $ (37,916 )
GENMARK
DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
Nine Months Ended September 30, 2017
2016 Operating activities Net loss $ (47,312 ) $
(37,923 ) Adjustments to reconcile net loss to net cash used in
operating activities: Depreciation and amortization 3,811 2,739
Amortization of premiums on investments 4 61 Amortization of
deferred debt issuance costs 891 277 Gain on sale of investment in
preferred stock — (9 ) Stock-based compensation 8,386 6,788
Provision for bad debt 51 13 Non-cash inventory adjustments 911 120
Other non-cash adjustments (190 ) 20 Changes in operating assets
and liabilities: Accounts receivable 1,272 1,719 Inventories (4,813
) (1,048 ) Prepaid expenses and other assets (767 ) (596 ) Other
long-term assets (16 ) — Accounts payable (1,468 ) 916 Accrued
compensation (452 ) 1,731 Other liabilities (913 ) 33
Net cash used in operating activities (40,605 )
(25,159 )
Investing activities Payments for intellectual
property licenses (500 ) (800 ) Purchases of property and equipment
(3,816 ) (5,105 ) Purchases of marketable securities (56,525 )
(32,895 ) Proceeds from sales of marketable securities 13,896 9
Maturities of marketable securities 8,500
8,050
Net cash used in investing activities (38,445 )
(30,741 )
Financing activities Proceeds from issuance of
common stock 86,835 30,448 Costs incurred in conjunction with stock
issuance (5,469 ) (1,091 ) Principal repayment of borrowings (6,123
) (28 ) Proceeds from borrowings 15,000 10,000 Costs associated
with debt issuance (187 ) (30 ) Proceeds from stock option
exercises 213 507
Net cash provided
by financing activities 90,269 39,806
Effect of exchange
rate changes on cash (17 ) 2
Net
increase (decrease) in cash and cash equivalents 11,202 (16,092
) Cash and cash equivalents at beginning of period 15,959
35,385 Cash and cash equivalents at end of
period $ 27,161 $ 19,293
Non-cash investing and
financing activities Transfer of instruments from (to) property
and equipment to (from) inventory $ (3,438 ) $ 234 Property and
equipment costs included in accounts payable $ 330 $ 1,040
Intellectual property acquisitions included in other current
liabilities $ — $ 700
Supplemental cash flow disclosures
Cash paid for income taxes, net $ 58 $ 38 Cash received for
interest $ 367 $ 58 Cash paid for interest $ 1,143 $ 761
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102006463/en/
Investor Relations ContactGenMark Diagnostics, Inc.Lynn
Pieper Lewis or Leigh Salvo(415) 937-5404ir@genmarkdx.com
GenMark Diagnostics (NASDAQ:GNMK)
Historical Stock Chart
From Aug 2024 to Sep 2024
GenMark Diagnostics (NASDAQ:GNMK)
Historical Stock Chart
From Sep 2023 to Sep 2024