After U.S. markets closed yesterday, Temple City, Calif. based provider of comprehensive genetic testing and Next Generation Sequencing (NGS) solutions Fulgent Genetics Inc. (FLGT:NASDAQ), announced third quarter financial results for the period ending September 30, 2019.
In the report the company advised that revenue in Q3/19 increased 84% to a record $10.3 million, compared to $5.6 million in Q3/18. The revenue increase was driven by record billable tests completed, which grew by 272% year-over-year to 20,697.
During Q3/19 the firm indicated that gross margin improved by 8.9 percentage points to 62.45% up from 53.56% in Q3/18, and the cost per test performed improved 60% year-over-year and 15% sequentially.
The company stated that GAAP income for the Q3/19 was $1.5 million, or $0.08 per share, and non-GAAP income was $2.6 million, or $0.14 per share. The firm advised that in Q3/19 Adjusted EBITDA increased 950% to $3.0 million, compared to $281,000 in Q3/18.
The company's Chairman and CEO Ming Hsieh commented, "We continued to build on our momentum in the third quarter and once again posted very strong results. Revenue and billable test volume reached new record highs in the third quarter, while cost per test continued to improve. Our strong top line results have been driven by the growing traction with our oncology and reproductive health businesses, as well as our sequencing-as-service offering. Our established strategic investments and partnerships are contributing to our ongoing momentum, and we have been successful in meeting the growing demand from our new commercial genomic customers. We believe our superior test capabilities, extensive and flexible test menu, along with our competitive pricing will continue to drive strong growth across our business."
Paul Kim, CFO at Fulgent Genetics, added, "We once again achieved record results in the third quarter, exceeding our expectations for test volume, revenue and profit. At the same time, we have seen increasing efficiencies across our business which have resulted in ongoing improvements in gross and operating margins. These efficiencies coupled with our increasing scale resulted in meaningful EBITDA, net income and cash flow generation in the quarter. We expect to see continued progress as we close out the year."
Fulgent Genetics describes itself as a technology company focused on offering comprehensive genetic testing in order to provide physicians with clinically actionable diagnostic information they can use to improve the quality of patient care. The company states that "it has developed a proprietary technology platform which allows it to offer a broad and flexible test menu and continually expand and improve its proprietary genetic reference library, while maintaining accessible pricing, high accuracy and competitive turnaround times. The company believes its test menu offers more genes for testing than its competitors in today's market."
Fulgent Genetics began the day with a market cap of about $173.8 million with approximately 18.49 million shares outstanding. FLGT shares opened more than 22% higher today at $11.50 (+$2.10, +22.34%) over yesterday's closing price of $9.40. The stock has traded today between $10.90 and $13.59/share and reached a 52-week intraday high price in morning trading. At present, the stock is trading at $13.25 (+3.85, +40.96%).
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