GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 04:30 pm ET

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GenMark Diagnostics, Inc. (NASDAQ:GNMK) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Scott Mendel

Thank you 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 statement about our expectations, beliefs, plans, objectives, assumptions or future events or performance are forward-looking statements. For example, statements concerning our 2020 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 result expressed or implied in such statements. Important factors which 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.

So with that, good afternoon, everyone and thank you all for joining us. I'm joined on the call today by Johnny Ek, our CFO. We hope you're all staying safe and healthy as we continue to face unprecedented challenges with COVID-19 pandemic. I'd like to take the next few minutes to review our recent performance and share our thoughts on the second half of 2020. I'll then turn the call over to Johnny for a deeper review of our recent financial performance and we will finish up with Q&A. On our earnings call in early March we highlighted our three strategic priorities for 2020. These included: number one, strong revenue growth; number two, making significant steps toward cash flow positivity through gross margin improvement and operating efficiencies; and number three, menu and technology development. At that time we were just beginning to see the start of the global pandemic. While we could not have anticipated depth and duration of this global health crisis, our team has remained committed to those key priorities and delivered remarkable results throughout the first half of this year and they've done so under extraordinary circumstances. With respect to our first strategic priority of driving strong top line growth, Q2 revenue was $40.1 million, up 118% versus the prior year. Our installed base grew by 71 analyzers to 652 at the end of second quarter, well ahead of our plan for this year. Placements in the second quarter included over 40 new customers, taking the total for the first half of 2020 to approximately 80 new customers.

While we did reposition a few instruments in the quarter, these were primarily underutilized units placed outside the U.S. and identified earlier this year as part of our stated objective to drive higher annuity internationally. Our commercial teams remain focused on driving ePlex placements that will deliver long-term recurring revenue streams. This is consistent