Fulgent Genetics(US:FLGT)2024-11-08 12:17Revenue Performance - Revenue decreased by $12.9 million, or 15%, from $84.7 million in the three months ended September 30, 2023, to $71.7 million in the same period of 2024[118]. - Revenue from laboratory services decreased by $11.5 million, or 5%, from $218.7 million in the nine months ended September 30, 2023, to $207.3 million in the same period of 2024[118]. - The decrease in revenue was attributed to a $21.0 million decline in COVID-19 testing services and a $10.5 million decrease in BioPharma services[118]. - Precision diagnostics revenue increased by $27.6 million, driven by growth in reproductive health services and specialized oncology tests[119]. - Revenue from non-U.S. sources increased by $0.3 million, or 6%, from $5.7 million in Q3 2023 to $6.0 million in Q3 2024, and increased by $3.6 million, or 25%, from $14.6 million in the nine months ended September 30, 2023, to $18.2 million in the nine months ended September 30, 2024[123]. Operating Performance - Operating loss for the three months ended September 30, 2024, was $(17.1) million compared to a profit of $0.2 million in the same period of 2023, representing a change of $(17.3) million[117]. - Total operating expenses rose by $4.2 million, or 11%, from $39.6 million in the three months ended September 30, 2023, to $43.9 million in the same period of 2024[117]. - The net loss attributable to Fulgent was $(14.6) million for the three months ended September 30, 2024, compared to a net loss of $(13.1) million in the same period of 2023, reflecting a change of $(1.5) million[117]. Research and Development - Research and development expenses increased by $1.8 million, or 18%, from $10.0 million in the three months ended September 30, 2023, to $11.8 million in the same period of 2024[117]. - Research and development expenses for therapeutic development increased by $2.2 million, or 87%, from $2.6 million in Q3 2023 to $4.8 million in Q3 2024, and increased by $7.3 million, or 95%, from $7.7 million in the nine months ended September 30, 2023, to $15.1 million in the nine months ended September 30, 2024[129]. - The company anticipates continued increases in research and development expenditures as it begins enrollment for the phase 2 study of FID-007 in Q2 2024, expecting to enroll approximately 40 patients by late 2025[129]. Cash Flow and Financial Position - Cash, cash equivalents, restricted cash, and marketable securities totaled $815.4 million as of September 30, 2024, down from $847.7 million as of December 31, 2023[140]. - Cash used in operating activities for the nine months ended September 30, 2024, was $4.0 million, a decrease from $12.1 million provided in the same period in 2023[146]. - Cash used in investing activities for the nine months ended September 30, 2024, was $30.9 million, primarily due to $374.2 million for purchases of marketable securities and $36.5 million for fixed assets[148]. - Cash used in financing activities for the nine months ended September 30, 2024, was $4.5 million, primarily related to $2.7 million for common stock withholding for employee tax obligations[150]. - The company does not expect to use any credit facilities for the foreseeable future due to a strong cash position as of September 30, 2024[151]. Expenses Overview - Consolidated cost of revenue decreased by $7.6 million, or 5%, from $139.5 million in the nine months ended September 30, 2023, to $131.9 million in the nine months ended September 30, 2024[125]. - Gross profit decreased by $13.1 million, or 33%, from $39.8 million in Q3 2023 to $26.8 million in Q3 2024, and decreased by $3.9 million, or 5%, from $79.2 million in the nine months ended September 30, 2023, to $75.4 million in the nine months ended September 30, 2024[127]. - Consolidated selling and marketing expenses decreased by $1.0 million, or 10%, from $10.2 million in Q3 2023 to $9.1 million in Q3 2024[130]. - Consolidated general and administrative expenses increased by $3.5 million, or 20%, from $17.5 million in Q3 2023 to $21.0 million in Q3 2024[133]. Tax and Other Income - The effective tax rates were 21% and 14% for the three and nine months ended September 30, 2024, respectively, compared to 296% and (42)% for the same periods in 2023[138]. - Other income, net, included interest income of $8.1 million and $23.2 million in Q3 2024, compared to $6.5 million and $15.8 million in Q3 2023, respectively[137]. Stock Repurchase Program - As of September 30, 2024, approximately $150.5 million remained available for future repurchases of common stock under the stock repurchase program[153]. - The stock repurchase program authorized in March 2022 amounts to $250.0 million with no expiration date[152].