GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon ladies and gentlemen and welcome to today's conference call to discuss GenMark Diagnostics Third Quarter 2019 Financial Results. My name is Shane and I will be your operator on this call. [Operator Instructions] Please note that this call is being recorded today Wednesday, November 6, 2019, at 1:30 PM Pacific Time and will be available on the Investors section of GenMark's website at www.genmarkdx.com.

I would now like to turn the meeting over to Leigh Salvo Investor Relations.

Executive
Leigh Salvo

Thank you, Shane, and thank you all very much for joining us today. Before we begin I would like to inform you that certain statements made by GenMark during the course of this call may constitute forward-looking statements. Any statements about our expectations beliefs plan objectives assumptions or future events or performance are forward-looking statements. For example, statements concerning our 2019 financial and operational guidance the development regulatory clearance commercialization and features of new product plans and objectives of management and market trends are all forward-looking statements. We believe these statements are based on reasonable assumptions.

However, these statements are not guarantees of performance and involve known and unknown risks and uncertainties that may cause the actual results to be materially different from any future results expressed or implied by such statements. Important factors that could cause actual results to differ materially from those in these forward-looking statements are detailed in GenMark's filings with the SEC. GenMark assumes no obligation and expressly disclaims any duty to update any forward-looking statements to reflect events or circumstances occurring after this call or to reflect the occurrence of unanticipated events.

I'd now like to turn the conference call over to Hany Massarany President and CEO of GenMark. Hany?

Executive
Hany Massarany

Thank you, Leigh and good afternoon everyone. With me today are Scott Mendel our COO; and Johnny Ek our CFO. I'd like to begin today's call with an update on our commercial performance then Scott will discuss operational highlights and Johnny will conclude with the financial details. At that time we will open the call for questions. Our third quarter results reflect continued success in delivering quality placements of our ePlex platform while also driving our operational efficiency and advancing our innovative product pipeline. Our commercial momentum in the quarter was propelled by the recent addition of our three FDA cleared blood culture ID panels as well as continued demand for our respiratory pathogen panel. More specifically starting with top line financial performance we achieved strong third quarter revenues of $20.9 million representing 32% growth over the prior-year period. ePlex sales in the quarter grew by 98% over the prior period accounting for $13.4 million or 64% of total third quarter revenues. Gross margin was consistent with our expectations at 34% and we will remain on track to achieve our 2019 gross margin guidance of 31% to 33% and longer term goal of 60% plus.

Drilling down to our commercial performance we placed 51 net new ePlex analyzers worldwide in Q3 2019 resulting in a global