GenMark Diagnostics first quarter revenues increase to $2.2M

GenMark Diagnostics, Inc. (Nasdaq:GNMK) today reported financial results for the first quarter ended March 31, 2012.

Revenues for the quarter ending March 31, 2012 were $2.2 million compared with $758,000 during the first quarter of 2011. The 185% year-over-year increase in total revenue reflects an increase in the number of systems placed at customer sites, growth in test menus and a significant increase in the number of tests sold. Reagent revenues for the first quarter grew 213% year-over-year to $1.9 million from $608,000. Instrument and other revenues increased by 60% year-over-year to $240,000 from $150,000 due mainly to capital sales of instruments. The Company placed a net 22 analyzers during the quarter, bringing the installed base to 189, all in end-user laboratories within the U.S. market.

Gross profit for the quarter ending March 31, 2012 was $472,000, or 22% of revenue, compared with a gross loss of $743,000, or -98% of revenue for the same period in 2011. The continued improvement in gross profit is the result of significant volume increases and manufacturing efficiencies.

Operating expenses increased $48,000 to $6.0 million during the first quarter of 2012 compared with the first quarter of 2011. Selling, General and Administrative expenses increased $663,000 year-over-year due to the increase in revenue, headcount growth and other corporate expenses. Research and Development expenses decreased $615,000 due to the FDA certification and restructuring costs from the first quarter in 2011 that did not recur in 2012, as well as lower clinical trial expenses.

Loss per share was $0.28 for the first quarter of 2012, compared with a loss per share of $0.56 in the first quarter of 2011.

The Company ended the first quarter of 2012 with $23.8 million in cash and cash equivalents. The Company intends to continue utilizing its cash balances to invest in new product and menu development, including the development of its NexGen platform, and for infrastructure improvements and general corporate purposes.

"We continued to execute strongly on our growth strategy during the first quarter of 2012," commented Hany Massarany, GenMark's President and CEO. "As a result we achieved excellent revenue and gross margin growth, as well as expanded our XT-8 installed base to 189 analyzers. We also secured technology and collaboration agreements that will provide us with maximum flexibility as we expand our test menu and complete the development of our next generation fully digital sample-to-answer system," Mr. Massarany further stated.