This article has been updated from a previous version to include comments from GenMark's earnings call.
NEW YORK (GenomeWeb) – GenMark Diagnostics reported on Tuesday morning that its second quarter revenues dropped 1 percent, due to a tough comparison to an unusually late 2015-2016 flu season.
For the three months ended June 31, the molecular diagnostics firm reported revenues of $12.4 million, down from $12.5 million a year ago and matching the consensus Wall Street estimate.
"Our team achieved [US Food and Drug Administration] 510(k) clearance of the ePlex instrument and Respiratory Pathogen panel as well as CE Mark for all three of our Blood Culture ID Panels," GenMark President and CEO Hany Massarany said in a statement.
He also noted GenMark significantly strengthened its balance sheet, which he believes will allow the company to bring more focus to the global commercialization of its ePlex System and its menu expansion.
"As was the case in Q1, ePlex contributed to Q2 top line, but most of the revenue came from our installed base of XT-8 analyzers in the USA," Massarany said on a conference call with analysts following the release of the financial results. "EPlex commercialization will continue to be a significant area of focus."
The company's net loss widened to $18.0 million from $12.9 million a year ago. Its loss per share increased to $.37, missing analysts' average estimate for a loss of $.32 per share.
Massarany also noted that on the conference call that "we finished the quarter with agreements for more than 115 ePlex instruments, of which we have now installed more than 80 at customer sites."
For the second quarter, GenMark trimmed its R&D spending 2 percent year over year to $13.0 million from $13.2 million, but it increased its SG&A costs 28 percent to $9.2 million from $7.2 million. Sales and marketing expenses increased as the company continues to expand its commercial organization in support of the global ePlex product launch.
The company ended the quarter with $88.4 million in cash and cash equivalents, and $18.1 million in marketable securities.
GenMark's shares were down more than 15 percent to $9.99 in Tuesday morning trading on the Nasdaq.