TMCnet News
GenMark Diagnostics Reports Third Quarter 2014 ResultsCARLSBAD, Calif. --(Business Wire)-- GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, today reported financial results for the quarter ended September 30, 2014. Revenues for the quarter ended September 30, 2014 increased by 36% to $6.3 million compared with $4.6 million during the third quarter of 2013. Consumable revenue for the third quarter 2014 increased by 52% to $6.0 million. The Company placed 27 net new analyzers during the current quarter to bring its total installed base to 502, all in end-user laboratories within the U.S. market. "Q3 was another quarter of excellent growth and progress. With an installed base of more than 500 XT-8 analyzers, we are confident in the continued market acceptance and support of our eSensor® detection technology. This unique technology has been fully incorporated into our ePlex sample-to-answer system, along with DNA and RNA extraction, purification and amplification. Based on this and other progess made during the quarter, we remain on track for completing development of our ePlex system by the end of this year," stated GenMark's President & CEO Hany Massarany. Gross profit for the quarter ended September 30, 2014 was $3.6 million, or 57% of revenue, compared with a gross profit of $0.5 million, or 11% of revenue for the third quarter of 2013 which was impacted by $1.2 million of charges related to former customer, NMTC. Operating expenses for the quarter ended September 30, 2014 were $13.9 million, an increase of $1.1 million compared with the third quarter of 2013, which included $2.5 million of one-time expenses related to NMTC. Research and Development expenses increased $2.5 million due to the Company's ePlex™ instrument and assay development activities. General and Administrative expenses increased $0.3 million primarily due to personnel costs. Sales and Marketing expenses for the current quarter were $3.2 million. Excluding a one-time charge in the prior year of $2.5 million, Sales and Marketing expenses increased $0.7 million mainly due to continued expansion of the Company's global commercial sales force ahead of the launch of ePlex™. Loss per share was $0.23 for the third quarter of 2014, compared with a loss per share of $0.30 in the third quarter of 2013. The loss per share in the current quarter included the reduction of the Company's tax reserve of $610,000 due to the expiration of the statute of limitations associated with an uncertain tax position. The Company ended the third quarter of 2014 with $79.2 million in cash and investments. The Company intends to continue utilizing its cash balances to invest in the development of its ePlex™ system and for infrastructure improvements and general corporate purposes. The Company also increased its full year 2014 guidance. Total year revenue is now expected to exceed $29.0 million and gross margin is expected to be approximately 54%. INVESTOR CONFERENCE CALL GenMark will hold a conference call to discuss third quarter 2014 results at 4:30PM EDT today. The conference call and webcast can be accessed live through the Company's website 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 22933448 approximately five minutes prior to the start time. ABOUT GENMARK DIAGNOSTICS GenMark Diagnostics 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. GenMark currently markets four tests that are FDA cleared for IVD use: Cystic Fibrosis Genotyping Test, Respiratory Viral Panel, Thrombophilia Risk Test, and Warfarin Sensitivity Test. A number of other tests, including HCV Genotyping, 2C19 Genotyping, and 3A4/3A5 Genotyping are available for research use only. 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 completion of our ePlex™ system and related assay development projects and our expected 2014 financial results, 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 develop and commercialize our ePlex™ system and its related test menu, 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. ABOUT NON-GAAP FINANCIAL MEASURES GenMark's management believes that non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain expenses and other items that may not be indicative of core business results. To supplement the Company's financial results for the third quarter of 2014 presented in accordance with GAAP, GenMark uses the following financial measures defined as non-GAAP by the SEC: non-GAAP cost of sales, non-GAAP sales and marketing expenses, non-GAAP operating expenses, non-GAAP gross profit, non-GAAP net loss, and non-GAAP loss per share. GenMark's management does not, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared and presented in accordance with GAAP. GenMark believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing GenMark's performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to GenMark's historical performance and our competitors' operating results. GenMark believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Further, our reconciliations of non-GAAP to GAAP operating results, which are included on the attached tables, are presented solely to assist a reader in understanding the impact of the various adjustments to our GAAP operating results, individually and in the aggregate, and are not intended to place any undue prominence on our non-GAAP operating results.
(1) Reflects nonrecurring charges related to inventory specifically made for NMTC (2) Reflects nonrecurring charges related to the Company's procurement of additional manufacturing equipment to support NMTC's prior purchasing patterns (3) Reflects nonrecurring Sales and Marketing charges related to outstanding amounts owed by NMTC (4) Reflects nonrecurring realized gain on sale of Advanced Liquid Logic, Inc. preferred stock to Illumina. Inc. The Company makes reference to "non-GAAP" results in the prior year periods, which exclude the impact of adjustments associated with NMTC's bankruptcy and the one-time gain realized upon the sale of the Company's investment in a private company. The Company believes that excluding these items and their related effects from its prior year financial results reflects operating results that are more indicative of the Company's operating performance while improving comparability to prior periods, and, as such, may provide investors with an enhanced understanding of the Company's past financial performance and prospects for the future. This information is not intended to be considered in isolation from, or as a substitute for, statement of comprehensive loss, net loss, net loss per share or expense information prepared in accordance with GAAP.
|