Fulgent Genetics(US:FLGT)2019-11-08 01:25Revenue Growth - Revenue increased by $4.7 million, or 84%, from $5.6 million in Q3 2018 to $10.3 million in Q3 2019[113] - Revenue for the nine months ended September 30, 2019, was $24.1 million, an increase of $8.5 million, or 54%, from $15.7 million in the same period in 2018[113] - Revenue from a group of affiliated customers contributed 40% and 33% of total revenues in Q3 2019 and the nine months ended September 30, 2019, respectively[117] Test Delivery Metrics - The number of billable tests delivered increased to 20,697 in Q3 2019, a 272% increase from 5,569 in Q3 2018[111] - The number of billable tests delivered increased by 15,128, from 5,569 in Q3 2018 to 20,697 in Q3 2019, and increased by 28,706, from 15,890 in the nine months ended September 30, 2018 to 44,596 in the same period of 2019[116] - Compound quarterly growth of 26% in the number of billable tests delivered over the last eight completed fiscal quarters[106] Pricing and Cost Efficiency - Average price per billable test delivered decreased from $1,010 in Q3 2018 to $500 in Q3 2019, a 50% decline[114] - Cost per billable test delivered decreased from $469 in Q3 2018 to $188 in Q3 2019, a 60% reduction[111] - Cost per billable test delivered decreased by $281, or 60%, from $469 in Q3 2018 to $188 in Q3 2019, and decreased by $264, or 53%, from $499 to $235 in the nine months ended September 30, 2018 and 2019, respectively[120] Profitability - Gross profit for Q3 2019 was $6.5 million, a 114% increase from $3.0 million in Q3 2018[111] - Net income for Q3 2019 was $1.5 million, compared to a net loss of $595,000 in Q3 2018[111] - The company achieved profitability in Q2 and Q3 of 2019, but recorded losses in all other periods since inception[106] Cost of Revenue - Cost of revenue increased by $1.3 million, or 49%, from $2.6 million in Q3 2018 to $3.9 million in Q3 2019, and increased by $2.5 million, or 32%, from $7.9 million in the nine months ended September 30, 2018 to $10.5 million in the same period of 2019[118][119] Operating Expenses - Research and development expenses increased by $306,000, or 21%, from $1.4 million in Q3 2018 to $1.7 million in Q3 2019, and increased by $634,000, or 15%, from $4.1 million to $4.7 million in the nine months ended September 30, 2018 and 2019, respectively[123][124] - Selling and marketing expenses increased by $572,000, or 51%, from $1.1 million in Q3 2018 to $1.7 million in Q3 2019, and increased by $739,000, or 21%, from $3.5 million to $4.3 million in the nine months ended September 30, 2018 and 2019, respectively[125][126] - General and administrative expenses increased by $216,000, or 17%, from $1.3 million in Q3 2018 to $1.5 million in Q3 2019, and increased by $523,000, or 13%, from $4.2 million to $4.7 million in the nine months ended September 30, 2018 and 2019, respectively[127][128] Cash Flow and Financial Position - Cash provided by operating activities for the nine months ended September 30, 2019 was $5.6 million, an increase from a cash used of $1.5 million in the same period of 2018[143][144] - Cash provided by investing activities in the nine months ended September 30, 2019 was $7.0 million, compared to $3.5 million in the same period of 2018[145][146] - Cash provided by financing activities for the nine months ended September 30, 2019 was $1.1 million, while financing activities in the same period of 2018 were minimal[147][149] - As of September 30, 2019, the company had $6.7 million in cash and cash equivalents and $30.7 million in marketable securities[135] Accounting and Compliance - The company has opted out of the extended transition period under the JOBS Act, committing to comply with new accounting standards as they are adopted[154] - There were no significant changes to critical accounting policies and estimates from the 2018 Annual Report[152] - The company currently has no off-balance sheet arrangements that could materially affect its financial condition[156]