GNMK - Earnings call transcript Q2 2018 | GenMark Diagnostics, Inc.

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Operator

Good afternoon, ladies and gentlemen, and welcome to today's conference call to discuss GenMark Diagnostics' Second Quarter 2018 Financial Results. My name is Valerie, and I'll be your operator on this call. After the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time. [Operator Instructions] Please note that this call is being recorded today, Monday, July 30, 2018, at 1:30 p.m. be www.genmarkdx.com. the will GenMark's section and at website time available Investors on of Pacific now to would host, I like Johnny your over Ek. conference to turn the call Sir, begin. you may

Johnny Ek

thank joining and Thanks, much all for Valerie, us you today. very

or we are about that statements you plans, our course this expectations, made to forward-looking forward-looking constitute assumptions the certain call during beliefs, I may like future GenMark statements. Before performance begin, of inform statements. events would or by Any objectives, statement

the guidance, objectives financial regulatory XXXX market our based concerning statements assumptions. new We and example, and on commercialization plans trends statements. of are of development, features these forward-looking For clearance, and statements believe reasonable are products, all management

uncertainties assumes materially statements results occurrence guarantees will those However, forward-looking are conference Hany this with could disclaims update over to in GenMark's events that duty any events. unanticipated in President reflect these SEC. Massarany, statements. any the from CEO involve different differ of cause statements expressly not and no results known detailed which to factors, to from the the or such circumstances the and occurring obligation call or future cause now reflect after Mr. implied turn GenMark. of I statements to by and actual filings or call actual to are results GenMark to risks Important expressed be of these performance may any and and forward-looking unknown materially

Hany Massarany

and Thank thank all us. you, you Johnny. Good for afternoon, joining

Scott call is CFO, me Mendel. the joining on today usual, As our

year-over-year. the quarter business continued commitment growth for quarter was of revenue results reflecting second Our our Total to highlight $XX.X million, XX% execution.

placements our teams was the optimize of for driven ongoing demonstrated workflow pace with enabled and efficiency respiratory ePlex expand during the largest laboratory test closed of U.S. majority past remarkable processing system's was the placed commercial by which Our panels. the pathogen This well testing ability in top season. combined testing ePlex performance know, international The and largely for and In cartridges. demand these flue XXX line analyzers capacity our the system installed to market the ePlex our of and placements platform were The our placements out with we markets. you quarter, as additional second U.S., the is our quarter base and QX in XX to globally.

in minutes improving to business driving by take conversions. XT-X first strategy GenMark with XXXX efficiencies. ePlex cover and customers to ePlex to our menu main adoption recent and like few yield test XXXX milestones The of and as expectations, elements driven were include Turning manufacturing in calls. highlights. new updates I'd relation market to placements expansion, these the rather as than growth cost to line and next some half mainly of the our in well existing

to very has proven test continues lower workflow be very high to our resonate volume strongly with also to ePlex volume customers, sites. While NP configuration attractive

IDNs across centralized delivery molecular sites ePlex As are of combination be with enabling be expected, multiplex traction and samples testing a also transported ePlex of requiring to to at instead done integrated networks, NP sites. to testing we where gaining is multiple

of this spoke sites expect and will software hub solution, forward, to of launch all particularly seamless our enable an IDN. We with within the continue future trend connectivity which platforms going ePlex across

plan expansion U.S. mid-XXs. have force in with end we quarter, last sales noted accelerated commercial XXXX with to a we a goal our As sales force the

very goal, of professionals only now, hires the stand we that we we've achieving from sales caliber are with we're pleased recruited so and As away handful of a far. this

routine optimize access expand Culture U.S., support distribution last of our maximize European solution professionals highlighted Identification are anticipated talented helping markets, We've The markets our our call, repositioning demonstrated to us the the initiatives well several revenue GenMark And impact the the underutilized to continuing as is Outside our Blood success commercial U.S. in second acquisition better in we as our strategic ePlex Our the provide enables in improve breakdown near in from base approach do we total new future and/or processes with sales distributors while expectations. continuing in team. I'm ePlex placement their generation. to ePlex of progress the to cycle us ePlex And good geographic of growth. our between continued launch with with are we as and Europe. a shorten ePlex advancement made with our panels market our analyzers also annuity address term we not positive to attract line on in of on to to Europe quarter key installed commercial to the and our addition and of plan to sales, new pleased network. of which and these the U.S. U.S. with results, are interest implementation

ePlex of the was to Turning X our to submission top priority. gram-positive milestone exciting an recent blood for market a culture The panels Completing ID of expansion. rollout unique company FDA first the panel menu GenMark. remains these, the U.S. of

that and testing antimicrobial As other expansion have now were be the perspective, sample could benefits a menu of approximately deliver, the today. BCID panels market blood the not drive it This of stewardship detection any market, fungal hospital ePlex standards the is such $XXX different streamline been broadest provide million functionality the demonstrated literature practice panels we impact to even experiences polymicrobial molecular molecular from culture gram-negative that to markers on the the have the further teams gram-positive, globally. on site-specific pathogen benefits and as available customer resistance that This with feedback approach actionable we in ability but and our this impact allows and has to is capability now proposition firmly version extends new released our systems. ePlex health the our actionable, believe the unique positive studies outcomes, demonstrated panels, respiratory software help ID inclusivity to ability highly panels designed software the while including which And the BCID broader benefits type. across menu make laboratory panels. demonstrates second multiplex Multiple We patient ePlex a only it local believe blood to compelling ePlex highlighting multiplex market, that our of approach to software and that the the panels ePlex differentiated to these superior panel to record offers testing culture selection unique ID of panels a underscores recently the also the customers BCID large to provided integration patient the IT to and value about the care. expansion, information, on inform opportunity with and very market diagnostic submitted have to as of solution. become our antibiogram our to therapy positive results From FDA, and of as integrate ePlex also more commitment

the fourth this for gram-negative Pathogen We are Panel commitment in respectively and submission the and panel executing on quarters, our of the Fungal third year. FDA

submission. completed been the that fact, happy testing FDA has In we for the announce clinical busy and are recently to gram-negative I'm preparing

X previously year begun, Fungal the Pathogen clearance timing. early our this for communicated, to of the expect all panels subject of next clinical end ahead BCID FDA recently Panel Therefore, study we internal of year FDA has Additionally, between the as review and slightly expectations.

on challenging and in BCID comfortable offer addition utility broadest hard As our time. seeing yield, manufacturing with finally, having demonstrating panels while our important areas I'm so across panels already draw we manufacturing of the expect to that internal efforts impact differentiated customers we now efficiency. stepped worked the gross to And on and this focus front. coverage which update pleased to studies to ePlex we very BCID panel. the expansion assay panels, the these increasingly have We've positive optimize the that we've we their And gastrointestinal teams the are drive to our made consider And important have improve final on processes. our completed progress far the sample regarding to are panel, ePlex's and continuing panels X their for all closer these is variability margins. my of processes with all development our menu of up menu, cost reduce on decision-making this

and on plan the on the half all over second to track flu XXXX, our ongoing cost our efficiency, gross support year will the I Our manufacturing And on for is and expansion efforts, of expansion the margin call manufacturing now we with XXXX review. beyond. his continued financial and turn focus season, to of capacity based menu this that, expansion Scott anticipate in further

Scott Mendel

Thank you, Hany.

versus per XX% placement our noted, U.S. our vast $XX.X account quarter per revenue is continuing guidance towards the $XXX,XXX majority our placement test of future Hany average the to ePlex with quarter quarter. the revenue end XXXX range with ePlex will expands. to during $XXX,XXX up second the be top XXXX, potential second to testing menu in The sales. per quarter second even million, years average as $XXX,XXX revenue increase This that placement our confidence the annuity low for pull-through our typically strong in the for respiratory bolsters per was of was of that the of year As

revenue. the or $X.X of XX% Second second in versus or XXXX was of million $X.X quarter gross profit of revenue XX% quarter million

our that projects. of and As lower-than-anticipated prioritization manufacturing discussed season first ePlex earnings was efficiency our quarter customer volume last call, needs the extraordinary meeting flu on by in margin implementing versus gross respiratory driven during

Based million the quarters resume As XXXX. yield a to compared comprehensive together beyond. expected, drive remain we with to we manufacturing cost in million ePlex cost over expenses business. optimizing operating decrease ePlex in $XX.X our to the with our next second and the XT-X gross confident quarter, successfully of due drive a on Total second improve quarter, ability quarter journey, our progress additional with expenses. on accretion decrease This margin the is processes This efficiency. which completed of one our we several margin our beginning made efficiencies, as focus familiar development for to is we manufacturing plan the to was $X.X reduced were and pursue to largely improve

versus with to balance second per prior lower investments. quarter $XX.X cash the significantly quarter was $X.XX share for the compared expenses by the Wrapping with quarter, million, balance finished we And We reduction we $XXX the of in first our in ended million quarter the XXXX. million and capital. loss receivable well net accounts XXXX, $X.X decrease of quarter the million cash quarter our quarter. compared million due the operating sequentially used of in prior our including in previously than working factors, which to manage focus of million. decreased year $X.XX When $X.X second as several of the to up efficiently as to with to mentioned the $X.X a sheet, was $XX.X inventory Our

usage couple capacity. Overall, investment to cash to our decrease offset improve and with grow next the as we will our We as by significantly as year commercial our to expect in line manufacturing quarters and of continue margins, the reduced cash relative well efforts continued revenue be R&D partially over and our usage prior in expectations.

Turning to guidance.

XXXX, are full guidance of year end our of expect the to we For continue to $XX million revenue that $XX reiterating million range. higher and the

the expectation margin gross Our remains range. XX% in

to ePlex guidance range by of by analyzers. continue R&D $XX for mid million to increases in net our in operating in reiterating also offset finally, new global are the reduction the expect range expenses XXX XXX SG&A. in partially mainly we placements And expenses XXXX driven We

have quarter, of potential incredible strong platform. our We the another demonstrates which delivered ePlex

the we near and the do are in creation, value strategy We happen. must accelerate are cognizant growth Expanding for term sales our will what also future. of remain area force key we for focus to to ePlex it adoption make in a and confident long-term our foreseeable

commitment our of market which expect ePlex to be share menu, a test is our revenue to important, our driver growth. significant expand as and Just we

this will later will U.S. We placements and next are efficiencies year and optimistic we about market positive year, the very panels remain early manufacturing have margin gross enthusiastic finally, cost laser-focused the And are on about in we ePlex improving family this revenue driving growth. and impact and launching expansion. of on our BCID

call the open We now questions. will to

Operator

Instructions] you. comes first Doug Thank Schenkel Our Cowen. from question [Operator of

Your is line open.

Doug Schenkel

we if what a on largely made the with wondering you've provide placements I give already? on earlier remain this afternoon, you. this point? we detail again, Have you your half I'm details you Thank you expect of the about there? repositioning, a just everybody. drag second a you commentary think, instrument this more Starting I reposition provided. talked much specifically, appreciate the dynamic, on at to is in how roughly And Can in us to of ahead, instruments ePlex behind on bit Europe. you could previously XX that to estimated Good XX plan in were, sense us or you progress looking slight the repositioned instruments point should this to most line

Hany Massarany

you of in in they process thank a Well, revenue, stuck and Europe a bit to as Doug. this systems productively indicated these and reposition other drive instruments is right. already very to fair All sites, earlier, decision-making sites have Yes, really planned of the we small used at accomplished number were we we several that where much, can that. be to

also signed continue that, there to during work with but new on quarter. we've distributors the the So aren't remaining, that up many including so we systems

Doug Schenkel

maybe gross pivoting a Hany. Okay. to Thanks And question. lot margin a

progress recognizing you right that still? to margins. Was just this previously provide indicated can target today? than us And gross the what what some expected year, to through relatedly, are year it the achieved you've but You higher still the this are to think XX% you that the halfway bit made quarter, on based this is you at you achieving already exit XX% from a nice target where about key to here way steps

Scott Mendel

is Scott. This Right.

for to continue gross the deliver XX% margin expect year we basis. So about to full

did good Second make we quarter, some progress.

we drove improvements, yield teams back some that the manufacturing half Our the in continue year. to nice of and expect

year year how in quarters. not flu it XX% build fourth XX% I and season that inventory year and in landing to but -- the or XX% the to range, at Maybe depends basis evolves to As far It guidance feel we as depends. the good it's going third how full this exiting full provided. quite we that that be XX%, Doug, do XX% about

well, of that involves cetera, focused implementing methodologies early final the help along as far common some in any lot out the control call the yield, A on a of finding the at improvement that opposed et last As mainly of most identify as end that. process, the of really far check the quality during -- to sorry, as as opportunities the flavor issues to manufacturing improving it and manufacturing is as as it and on do is I whole that the teams way driving. process, of host about QC the initiatives talked of there

that, such as direct Beyond well. and a efficiency material it's direct labor things

Doug Schenkel

Okay. for And Thank one you last one. quick that.

quicker to For could this way I completion putting as Is from time gram-positive, little it about you lines? submission the took about FDA. actually one X bit guess, possible is months we and gram those? think official it, the the Or fungal that reasonable precedent, of the it move a as clinical tests a with to negative of

Hany Massarany

submit expect next both gram which the process continue ongoing and therefore, internally well the is learning an panel sort doing our and it's and quarter. Doug, this quarter to we fungal with managing to and very And panel FDA. Well of of better, improving working team negative

Scott Mendel

the a add just with the what is would the clinical doing that are method and/or we that we specifically associated tends system, efficiency variable Doug, results. can't discordant comparative testing to ePlex of any any I a with of type resolution with testing anticipate be pleased

through get tend ePlex. we able that us, pleased but how little unknown very with to the to quickly we're bit utilizing So samples are be a for clinical

Doug Schenkel

Thanks Okay. lot guys. Appreciate a it.

Operator

Thank you.

De Derik of Bruin from comes question next Our America. of Bank

is line Your open.

Unidentified Analyst

afternoon products you you. Ivy of what seeing just when thank into QIAGEN'S like Derik Bruin. marketing? you're Thank curious, Hi, in you question. are De you terms for in competition, running diagnostics taking my Hi, are this is for Good and so

Hany Massarany

Not specifically.

every products the make are time, there we competitors, various who with all molecular that placement market are, course, with for We multiplex on testing. with of sample out answer competing to

adopting we're We performing tests some have having, well. very ePlex are where by we're with just but very not satisfied, competing this also who happy that in previously as with been success incumbents, not labs cases the were

said, with we're marketplace. I in certainly not competing but QIAGEN other suppliers the like with yet, So necessarily

Unidentified Analyst

to I appreciate operating gross a Switching Okay. comment. the little. gears expenses and margin

to comments, Thank but for can of all, SG&A wanted First for you. just and if your see margin rest the expenses for elaborate year? you on of R&D gross trend appreciate the

Scott Mendel

can in handle margin, on as about second we gross From quarter. I I just finished trending that. is Ivy, perspective quarter-over-quarter the reported, we Sure. This Scott. sequentially expect improvements. a XX% slight would some

For directly progress total second about XX% question, I well bit prior From do good And XX% gross for we'll standpoint, for the XX% a quite expense operating prepared question, it's as don't an was that fungal related in I the the but that quarter. happened rapid confident the a getting made know of R&D exit margin. of be trials to have did year gram-negative. rate, that in feel expense we the clinical we in as to

saw finished what was in acceleration as the in testing begun. we building fungal, the of necessary the for clinical trials. already we've And the So mentioned, Hany complete gram-negative those just lines all the for and clinical to expense have consumables R&D second we quarter

So full to in and full basis. remain difference quarter. range expense on between operating million the that's range still basis, a get second line a trending that committed that a that operating year any and QX really mid-$XX us $XX up QX drove on expense, mid- see from big we year don't I to what's for to From perspective million magnitude perspective

Unidentified Analyst

you. Thank Okay.

Scott Mendel

You’re welcome.

Operator

you. Thank

Our next JPMorgan. Tycho comes from question Peterson of

open. is Your line

Unidentified Analyst

for on taking is the quarter. This today. Thanks actually Hi. for Julia Tycho

some Europe, prepared So then distributor in also remarks cycle. on new in first and shortening your sales one, the the initiatives you activities mentioned

markets enter, how cycle new the then you what you sales shortening if Europe? initiatives, new that to more exactly these specifics are wondering could and you in does give distributors, the Just regarding allow

Hany Massarany

for Thanks the question.

additional time. have that's cycle entered done help the this distributors in in of at second we those have also to have specific and and we efforts. of to markets, the GenMark of strategy teams sort markets. where new European quarter. prior secured in augment And shorten with part of sort not in new some But to we our and those didn't Central disclosing markets we that markets with Western addition, partnering distributors distributors decision-making both so are We direct our these the several where have markets major accelerate the also But working help we've

Unidentified Analyst

a give this margins versus revenue XT-X on in factor in you quarter? what's that mix margin in zooming the improvement And change quarter? maybe on quarter mix ePlex then And little an versus how of Could bit. update sequential gross Okay. last into us the does this

Scott Mendel

Certainly, Yes. believe mix predominantly - maybe that I the on bit first more the little quarter about It's versus a a second we were ePlex. the about quarter. little bit XX%, in normalized in XX%, XX-XX, than XT-X

I XX% it quarter. think ePlex in was first the

ePlex, bringing So definitely XT-X we at our the ePlex margins while that in mix back were improving second out helped our quarter. that But expectations. shift in time the with was towards line

Unidentified Analyst

And it. BCID are to this later thinking year guys we launch the pricing? then next Got or forward around how you year, early lastly, look as

Hany Massarany

pricing, with conjunction mentioned disclosed panels, have believe as you a if a ePlex in we -- yet that at I earlier. mean, those And benefits proposition haven't the We customer in always brings market. that the value to customers. the We strong U.S. with to premium. very price We

we and terms share securing also additional accordingly, of are in certainly, will we be market growing So competitive very pricing but

Unidentified Analyst

you. thank Okay,

Operator

Thank you.

next Our Weinstein Brian William Blair. question of from comes

open. is line Your

Brian Weinstein

taking the for questions. Thanks Gentlemen.

general, are for would part? the multiplexing customers from expectations. said that we comments Obviously, in these though with I on in these customers, mainly are takeaways adoption or start the competitive So to were new new most you line

Hany Massarany

Brian. Mostly competitive takeaways, takeaway -

call we We're we're had upgrade to like competitive XT-X being but is ePlex. to securing XT-X also multiplex who white obviously, solutions a customers of not the closely ready customers basis. to managed that's upgrade and who it's We customers ePlex and know alternative displacements performed it, I some, case-by-case mostly previously continue who before sort space with I'll just with when, working by have customers on certain testing, mean,

Brian Weinstein

you and force by then And about that Great. goal, you've talked mid- on the reiterated 'XXs sales expansion, year-end.

about still we thinking X what is X.X of Is per productivity have term per to term? targeted. about the conversations had rep reps, do over or you about it How talked And think as of longer I more you communicated how in Is are initially something around longer you that any increase previous - guys of that productivity that you're time? kind should analyzers kind guys productivity targets menu? kind increase on of those you quarter that? think had getting

Hany Massarany

haven't We really.

impact think become you come sales It model takes stated, are for-- of a is good the productivity. and of up representatives type menu sort they for on And sure. our this quarters I a speed of certainly, to few based expansion maybe quarters to to numbers of for couple numbers a there effective. positive

launch So expect menu us more we systems. it helps as we do ePlex, on that additional place

Brian Weinstein

fire Okay. And a ones. then just rapid couple of

don't guys you the for I disclosed reagent think rentals First, quarter. the capital versus

heavier season? on or So trying done And the XXX, think launch? the do of But may half, then of XX XXX about the give factor, that than to kind like early the being in ahead about think as as how something idea to should better people a second a Or would little we fourth you've third something as Thanks. respiratory you in also SKU there? look first the that? think similar that little get think placements, we bit in bit given the you I of are can something Should you quarter big system half. how an not a be guided quarter in so at be we the so you've

Hany Massarany

I'll start. of a to sort I'll add answer. couple will Scott make my comments, and of Okay. then

under to continues it to pressure hard So get. be terms in and capital, of

beginning based sort rental, XX% getting sort capital or Our We're get versus in more dynamics. we're were capital, sort but reagent the that the still year more at of seeing sort would reagent rental on lower range. competitive our initial so we of of of expectation XX% but of

half, the net changing for XX the year, without yes, for our reiterating the first placements year we new of we're and that. placements number did guidance in of terms In

that. it's So we you little basically, can first the of do bit the a half. math on in yes, sort did But than more

Scott Mendel

Brian, to that. And I'll add

So fact that we quarter. of would at of in a we're here a XX that go larger to we will And evenly the disbursed would we between say Net-net, a to help midpoint launching that get bit the somewhat I share in the quarter, a would be we've so and probably year. got midpoint expected it expect be year that our the have going BCID, bit the of the would out little going smooth and it's guidance. muted while that's fourth little think than or probably remainder I that to suggest of this little guidance about bit left normally to say across end more of by third the probably typically,

Brian Weinstein

Thanks. you the of couple next Hope to see in day. Thanks, guys.

Scott Mendel

Thank good. sounds you. It

Operator

Thank you.

Our next Genuity. of question Canaccord Massaro comes from Mark

open. line Your

Mark Massaro

quarter. good Hey, on a question congrats guys. for the and taking Thanks

Scott Mendel

Thanks, Mark.

Mark Massaro

hepatitis genotyping reference some My indicated large is, during first the C change the in of sort question testing labs a of quarter.

I maybe think beyond? changes in if we roughly potentially about overall you're Whether XXXX how any you is could C dynamics So hepatitis And QX? should your revenue to if your seeing business? genotyping whatsoever, or impact comment saw on what or in you not size impacting any that guess,

Hany Massarany

business panel by C or will I did comment hepatitis yes, so Mark. Thanks, I We genotyping product, how and report right. by genotyping big And our relation is. labs. your in notes testing national on to C see don't hepatitis not reference All

the However, - say, market, targeted I testing that we our the we dynamics look, fully beyond all seen of decline context will especially that we in of therapies, in new understand that's haven't the expectation. the while any

revenue don't add expect And few. anything planned that's you year. We guidance I what and this at Scott, reiterating - the why say we a we all already stage. our So different, for. can are had we for that's can

Scott Mendel

Hany that, we Yes, there. of a in sure their are we to think right in in that our customers it just make market space this I stay with has I lot add expectations. got contact key sync with would

that but success this ePlex can So we - remainder not And project just business, growth year, really years really is that upon sure accurately forward, genotyping in revenue the XT-X platform future add contingent this of of we're just focused Mark, we're well. so would going on business is as the I for the HCV and really our making and adoption and is right, legacy that driving menu. is an so ePlex ePlex

Mark Massaro

about you I also guys you maybe wanted teams panel, And clinical panel. may some your to Can as GI that to on think trial? enter you've this Terrific. when ask you turned the indicated a into commentary focus we to development provide

Hany Massarany

Okay.

completed effort the to gastrointestinal of that we of the you're teams, So directing right of our Mark, our now studies the complete have to toward all the FDA of pathogen work panel. course, internal review continue of analytical process, panels, BCID all for with will sort already but lot a

the of initiation right on haven't working now items cetera yet. But to other panel respect with clinical with studies, timeline certainly in we're disclosed on menu future. et a it's comment will that that we We together

Mark Massaro

much, guys. Thanks very Understand.

Operator

you. Thank

& Our Company. next question comes from Mike Matson Needham of

line Your is open.

Mike Matson

of out I wanted just you NP, my I the called Thanks Hi. just start, ePlex guess, was comments us some kind how mix can you for give NP versus the qualitative of X much question. I taking think slot to around configuration?

Scott Mendel

Mark, it's I'll Hi, Scott, start.

annuity So specific and placement an importantly, us we standard the guidance It disclosing line configuration in we not and Most NP expectations. timing ePlex been our for versus important performing why $XXX,XXX impact still we reconfirmed the has numbers configuration. that's will of $XXX,XXX of do aren't in per any the to that? and the placement, on per it the have with annuity fact believe

Mike Matson

mix Okay. or? to even the of sales it the part But been significant is fair U.S. its assume in

Scott Mendel

Again, of significant Mike. it that enough the impact not not placement putting specifically, annuity we're per it Mark - would out any

line of we're the and I in is than placements per say we had wouldn't So with a think generating it's expectations, our and NP I more but that the number configuration quarter it's expected. majority, say wouldn't

Mike Matson

provide that's something for? is how little a you hub were you software, charged on and spoke just that No, then And And fine. works? that detail that Okay. the more can

Hany Massarany

the Well, is will decentralized NP IDN it and central system. that it that customers our in any are well is lab something ePlex but and within be between an will will in we sites This will relation connectivity systems due doing allow work, as in the additional the priced yet positioned, Mike, we're haven't way that disclosed how on. asking for And be working course. and we it to information as

Mike Matson

Okay. said that mentioned revenue? did But you of you sort pricing, so - implies

Hany Massarany

connectivity to mention software. pricing the It a as delivery patient management, entire basically allow each across data separately at didn't manage integrated networks to to in their workflow QC I relation site. will the network is and and opposed results that solution

Mike Matson

right. Scott, any not as that going to your know finally, - be kind first in sure but year. get in don't I that that going I mentioned around for the - the consistent it's Street, expectations, of with million it's we that half, if you given All the we're with But you line the was use in guidance on can burn to but it's then of expectations you remainder to comment the $XX don't good half. or second And Okay. think guess, you've just cash cash your the I

the So you in second to can Or half? expect do willing you that? not you quantify what

Scott Mendel

in $XX million like in I we year. $XX.X more We were $XX believe. So half first the million. were million,

range I grows cash of I didn't gross the and back around margin million expected total revenue $XX something give specific I then gross in year. year it operating expense, million $XX calculate to and did guidance, the as decline would but you mid- continue leave burn. and the margin, between of to Mike, improves to that revenue half So

Mike Matson

you. Thank Okay.

Operator

this would like turn to back closing questions over remarks. showing for Thank Hany you. Massarany at any I the no conference I'm time. further to

Hany Massarany

for everyone time ongoing look All your you, we thank Bye-bye. a right. support. in quarters. coming for to Have good progress Well, your day. afternoon the our this And and reporting forward

Operator

this day. Ladies you and you. a does conference. today's wonderful have participation Thank for your conclude Thank and gentlemen,

disconnect. all may You

GenMark Diagnostics (GNMK) 30 Jul 182018 Q2 Earnings call transcript