GenMark Diagnostics, Inc. (GNMK) saw its loss widen to $12.06 million, or $0.27 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $11.39 million, or $0.27 a share. Revenue during the quarter grew 27.63 percent to $10.81 million from $8.47 million in the previous year period. Gross margin for the quarter contracted 77 basis points over the previous year period to 59.66 percent.
Operating loss for the quarter was $11.63 million, compared with an operating loss of $11.12 million in the previous year period.
"In addition to continued strong performance from XT-8 in the USA, during the third quarter we also realized our first ePlex revenues in Europe. Over the past few months, our ePlex commercialization efforts have been highly effective. Since our last update, we have more than doubled the number of ePlex customer agreements to more than thirty. Our global funnel of ePlex opportunities continues to strengthen, and customer feedback remains very positive," said Hany Massarany, president and chief executive officer of GenMark. "Furthermore, we recently completed the testing of clinical samples required for 510(k) clearance of the ePlex instrument and its Respiratory Pathogen (RP) panel. Our teams are now preparing clinical study reports for submission to the FDA this quarter, in line with our expectations. Additionally, we raised $29 million of cash during the quarter in an at-the-market (ATM) equity offering of common stock further strengthening our balance sheet," added Massarany.
For fiscal year 2016, GenMark Diagnostics, Inc. forecasts revenue to be in the range of $47 million to $51 million.
Operating cash flow remains negative
GenMark Diagnostics, Inc. has spent $25.16 million cash to meet operating activities during the nine month period as against cash outgo of $23.68 million in the last year period. The company has spent $30.74 million cash to meet investing activities during the nine month period as against cash inflow of $10.36 million in the last year period
Cash flow from financing activities was $39.81 million for the nine month period, up 272.72 percent or $29.13 million, when compared with the last year period.
Cash and cash equivalents stood at $19.29 million as on Sep. 30, 2016, down 43.61 percent or $14.92 million from $34.21 million on Sep. 30, 2015.
Working capital declines
GenMark Diagnostics, Inc. has witnessed a decline in the working capital over the last year. It stood at $44.85 million as at Sep. 30, 2016, down 11.41 percent or $5.77 million from $50.62 million on Sep. 30, 2015. Current ratio was at 3.26 as on Sep. 30, 2016, down from 5.41 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 19 days for the quarter from 16 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 44 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 100 days for the quarter from 123 for the same period last year.
Debt increases substantially
GenMark Diagnostics, Inc. has witnessed an increase in total debt over the last one year. It stood at $19.70 million as on Sep. 30, 2016, up 77.49 percent or $8.60 million from $11.10 million on Sep. 30, 2015. Short-term debt stood at $5.40 million as on Sep. 30, 2016. Total debt was 22.98 percent of total assets as on Sep. 30, 2016, compared with 14.41 percent on Sep. 30, 2015. Debt to equity ratio was at 0.41 as on Sep. 30, 2016, up from 0.20 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
