Fulgent Genetics Inc. (FLGT:NASDAQ) yesterday announced second quarter financial results for the period ended June 30, 2020.
The company reported that revenue increased by 105% to a record $17.3 million in Q2/20, compared to $8.4 million in Q2/19. The firm advised that in Q2/20 GAAP income was $3.3 million, or $0.14 per share, and non-GAAP income was $4.0 million, or $0.17 per share. Fulgent Genetics additionally indicated that adjusted EBITDA was $4.3 million in Q2/20, compared to $1.5 million in Q2/19.
The firm highlighted that in Q2/20 it delivered a record number 180,513 billable tests, which grew by 1003% YoY. The company added that its gross margin improved approximately 8% versus Q1/20 and that the cost per test improved approximately 81% YoY.
The company's Chairman and CEO Ming Hsieh commented, "The global COVID-19 pandemic has tested who we are as a company, and now more than ever we have demonstrated that Fulgent is a technology company with a proprietary platform built for massive scale. Our technology is the cornerstone for all facets of our business, including cloud computing, pipeline services, record management, web portal services, clinical workflow, sequencing as a service and automated lab services. Our second quarter results illustrate how we quickly applied our technology to the needs of today, organically developing and launching multiple tests to detect COVID-19 with Emergency Use Authorization from the FDA, including an at-home test offered through Picture Genetics, our patient-initiated product. These offerings have attracted major new customer accounts, resulting in an inflection point in our business and outlook."
Fulgent Genetics' CFO Paul Kim stated, "Our second quarter volume increased over 1200% sequentially, and we see the opportunity for continued momentum through the balance of the year. Our traditional genetic testing orders rebounded in June and July and are on track for growth in the second half of 2020. By aggressively applying our technology platform, we democratized and made affordable the needs of COVID-19 testing to the public, resulting in overall average selling price of less than $100 per test, while shortening our average turnaround time to less than 24 hours from receipt of sample. We expanded our customer base for the long term by winning large, strategic governmental and commercial accounts. We will provide a formal update on our guidance for the remainder of the year during our investment community conference call to shortly follow the issuance of this press release."
Fulgent Genetics is a technology company 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 explained that "it combines next generation sequencing (NGS) with its technology platform allowing it to perform full-gene sequencing with deletion/duplication analysis in an array of panels that can be tailored to meet specific customer needs."
The firm pointed out that since March 2020, it also launched several tests for the detection of SARS-CoV-2 including NGS and reverse transcription polymerase chain reaction (RT-PCR)-based tests. The company indicated that it received Emergency Use Authorization from the FDA for the RT-PCR-based tests for both the detection of SARS-CoV-2 using upper respiratory specimens and for at-home testing through Picture Genetics.
The company noted that its Picture Genetics platform offers consumers affordable direct access to its advanced genetic testing and analytics capabilities from comfort of their own home. The platform facilitates at-home genetic screening with oversight from independent physicians and allows for multiple tests in one easy process that provides medically actionable, clinical-level results with supervised professional medical follow-up.
Fulgent Genetics started the day with a market capitalization of around $644.2 million with approximately 21.7 million shares outstanding and a short interest of about 4.7%. FLGT shares opened nearly 32% higher today at $39.18 (+$9.49, +31.96%) over yesterday's $29.69 closing price and reached a new 52-week high price this morning of $43.64. The stock has traded today between $34.36 and $43.64 per share and is currently trading at $36.26 (+$6.57, +22.13%).
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