GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, today reported financial results for the quarter ended March 31, 2014.
Revenues for the quarter ended March 31, 2014 were $7.9 million compared with $11.1 million during the first quarter of 2013. The 29% year-over-year decrease in total revenue was attributable to a lack of purchases from Natural Molecular Testing Corporation (NMTC) during the current period, which was offset by significant growth in both reagent and instrument revenues from other customers. NMTC accounted for 61% of total revenues in the quarter ended March 31, 2013 and did not account for any revenue in the first quarter 2014. Revenue during the current quarter from the Company's "base business," which excludes revenue attributable to NMTC, increased by 84% over the prior year period. Reagent revenue for the first quarter declined 31% to $7.4 million compared with $10.8 million in the quarter ended March 31, 2013. Reagent revenue during the current quarter from the Company's base business increased by 85% over the prior year period. Instrument and other revenues increased by 63% to $0.5 million from $0.3 million in the prior year, due mainly to sales of XT-8 instruments. The Company placed 31 net new analyzers during the current quarter to bring its total installed base to 444, all in end-user laboratories within the U.S. market.
“Our base business continued to demonstrate strong revenue growth on both a year-over-year and sequential basis, growing by 84% compared with the first quarter of 2013, and approximately 23% over last quarter. Additionally, we are very pleased with the progress we made with our NexGen sample-to-answer system and we remain on track to complete its development this summer," stated GenMark’s President & CEO Hany Massarany.
Gross profit for the quarter ended March 31, 2014 was $4.2 million, or 53% of revenue, compared with a gross profit of $6.1 million, or 55% of revenue for the same period in 2013.