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CDI(CODX) - 2021 Q2 - Earnings Call Transcript
CODXCDI(CODX)2021-08-13 02:02
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Financial Data and Key Metrics Changes - In Q2 2021, revenue reached 27.4million,anincreaseof27.4 million, an increase of 3.3 million or 13.8% from 24millioninQ22020,primarilydrivenbycontinuedsalesoftheLogixSmartCOVID−19test[26]−Grossprofitforthequarterincreasedby24 million in Q2 2020, primarily driven by continued sales of the Logix Smart COVID-19 test [26] - Gross profit for the quarter increased by 6.8 million or 37.6% to 24.9million,upfrom24.9 million, up from 18.1 million in the same quarter last year [26] - Year-to-date revenue grew to 47.4million,anincreaseof47.4 million, an increase of 21.8 million or 85.2%, with gross profit up more than 100% to 41.6million[28]BusinessLineDataandKeyMetricsChanges−ThecompanyachievedrecordsalesinQ2,withinternationalsalesexceedingdomesticsales,reflectingstronginternationalpartnerships[9]−CoSara,thejointventureinIndia,reportedaprofitablequarterdrivenbydemandforCOVID−19testsandotherdiagnostics[12]−Thecompanyplanstoexpanditsproductofferingstoservethecentralizedlaboratorysegmentandtheat−homeandpoint−of−caremarketwiththeEikonplatform[14]MarketDataandKeyMetricsChanges−ThedemandforCOVID−19testingremainsstrongduetotheemergenceofvariantsandtheneedforongoingtestingdespitewidespreadvaccination[20][21]−Thecompanyhassoldover20millionLogixSmartCOVID−19−relatedproducts,indicatingrobustmarketdemand[10]−Thecompanyanticipatesthird−quarterrevenuebetween41.6 million [28] Business Line Data and Key Metrics Changes - The company achieved record sales in Q2, with international sales exceeding domestic sales, reflecting strong international partnerships [9] - CoSara, the joint venture in India, reported a profitable quarter driven by demand for COVID-19 tests and other diagnostics [12] - The company plans to expand its product offerings to serve the centralized laboratory segment and the at-home and point-of-care market with the Eikon platform [14] Market Data and Key Metrics Changes - The demand for COVID-19 testing remains strong due to the emergence of variants and the need for ongoing testing despite widespread vaccination [20][21] - The company has sold over 20 million Logix Smart COVID-19-related products, indicating robust market demand [10] - The company anticipates third-quarter revenue between 23 million and 25million,reflectingcontinuedstrongdomesticandinternationaldemand[38]CompanyStrategyandDevelopmentDirection−Thecompanyaimstobecomealeadingglobalmoleculardiagnosticscompany,leveragingitscleanbalancesheetandstrongcashaccumulation[9]−TheEikonplatformisdesignedtooperationalizetestinginat−homeandpoint−of−caresettings,withafocusonspeed,accuracy,andcost−effectiveness[24]−ThecompanyisexpandingitsmenuoftestsbeyondCOVID−19toincludevariousinfectiousdiseasesandcancerdetection[17]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementbelievesthatmassvaccinationwillnoteliminatetheneedfortesting,emphasizingtheimportanceofongoingtestinginvarioussettings[20][21]−ThecompanyisoptimisticaboutthepotentialcontributionoftheEikonplatformtofuturegrowth,withplansforregulatorysubmissionsinQ4[48]−Managementexpressedconfidenceinthecompany′sabilitytogeneratesolidfinancialresultsforthesecondhalfof2021[37]OtherImportantInformation−Thecompanyreportedtotaloperatingexpensesof25 million, reflecting continued strong domestic and international demand [38] Company Strategy and Development Direction - The company aims to become a leading global molecular diagnostics company, leveraging its clean balance sheet and strong cash accumulation [9] - The Eikon platform is designed to operationalize testing in at-home and point-of-care settings, with a focus on speed, accuracy, and cost-effectiveness [24] - The company is expanding its menu of tests beyond COVID-19 to include various infectious diseases and cancer detection [17] Management's Comments on Operating Environment and Future Outlook - Management believes that mass vaccination will not eliminate the need for testing, emphasizing the importance of ongoing testing in various settings [20][21] - The company is optimistic about the potential contribution of the Eikon platform to future growth, with plans for regulatory submissions in Q4 [48] - Management expressed confidence in the company's ability to generate solid financial results for the second half of 2021 [37] Other Important Information - The company reported total operating expenses of 13.1 million for Q2, up from 3.4 million in the same quarter last year, driven by increased sales and marketing and R&D expenses [28] - The balance sheet strengthened with cash, cash equivalents, and marketable securities totaling 72.4 million at June 30, 2021, an increase of $25 million from December 31, 2020 [34] - The company has no debt, allowing it to focus on launching the Eikon product without financial distractions [55] Q&A Session Summary Question: Long-term view of COVID-19 diagnostic market demand - Management believes that testing will continue to be necessary despite widespread vaccination, especially with the emergence of new variants [41][42] Question: Current estimated timeframe for Eikon to enter the market - The company anticipates submitting for FDA EUA by the end of Q4 2021, with ongoing clinical trials [48][49] Question: Plans for cash reserves - The company intends to use its cash reserves to support the ambitious international launch of the Eikon product [55] Question: Dynamics behind sales fall-off in the U.S. - The decline in U.S. sales is attributed to widespread vaccination and the normalization of activities, but ongoing testing remains essential due to variants [61][63]