Fulgent Genetics(US:FLGT)2024-05-03 11:34Revenue Performance - Revenue for the three months ended March 31, 2024, was $64.5 million, a decrease of $1.7 million or 3% from $66.2 million in the same period of 2023[120] - Precision diagnostics revenue increased by $9.5 million or 34%, accounting for 58% of total revenue, driven by growth in reproductive health services and specialized oncology tests[121][122] - Revenue from non-U.S. sources increased by $2.5 million or 62%, from $4.1 million in Q1 2023 to $6.6 million in Q1 2024, mainly due to sales in China[127] Cost and Profitability - Cost of revenue decreased by $5.0 million or 11%, resulting in a gross profit increase of $3.3 million, with gross margin improving from 28.4% to 34.3%[128][129] - Net loss attributable to Fulgent decreased by $1.9 million or 12%, from $15.3 million in Q1 2023 to $13.5 million in Q1 2024[120] Expenses - Research and development expenses rose by $1.6 million or 66% to $4.1 million, primarily due to increased costs associated with a drug study for FID-007[130][133] - Selling and marketing expenses decreased by $1.1 million or 11%, reflecting reduced costs related to COVID-19 testing operations[134] - General and administrative expenses decreased by $313,000 or 1%, due to lower provisions for credit losses and business insurance expenses[135] Cash and Investments - As of March 31, 2024, the company had $846.2 million in cash, cash equivalents, and marketable securities, slightly down from $847.7 million as of December 31, 2023[141] - Cash used in investing activities for the three months ended March 31, 2024, was $47.2 million, primarily due to $195.7 million spent on marketable securities[148] - Cash used in financing activities for the three months ended March 31, 2024, was $2.8 million, compared to $1.1 million in the same period of 2023[150] Cash Flow and Future Outlook - Net cash provided by operating activities for the three months ended March 31, 2024, was $7.3 million, an improvement from a net cash used of $7.9 million in the same period of 2023[146] - The company expects to incur more operating expenses in the coming year due to planned clinical trials and investments in laboratory services[146] - The company believes its existing cash and marketable securities will be sufficient to meet anticipated cash requirements for at least the next 12 months[143] - Cash flows from operations have experienced fluctuations, influenced by factors such as demand for tests and billing cycles[143] - The company may seek additional capital through various means, which could lead to dilution for existing shareholders[144] Share Repurchase Program - The company repurchased 10,000 shares of common stock at an aggregate cost of $225,000 during the three months ended March 31, 2024, with approximately $150.5 million remaining for future repurchases[153] - The stock repurchase program authorized in March 2022 has no expiration date, allowing for ongoing share repurchases[152] Taxation - The effective tax rate for the three months ended March 31, 2024, was 2%, down from 25% in the same period of 2023, due to a valuation allowance affecting the recognition of net operating losses[138]