CDI(US:CODX)2021-08-13 02:02Financial Data and Key Metrics Changes - In Q2 2021, revenue reached $27.4 million, an increase of $3.3 million or 13.8% from $24 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 $24.9 million, up from $18.1 million in the same quarter last year [26] - Year-to-date revenue grew to $47.4 million, an increase of $21.8 million or 85.2%, with gross profit up more than 100% to $41.6 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 $25 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]