GNMK - Earnings call transcript Q4 2019 | GenMark Diagnostics, Inc.

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Operator

Ladies and gentlemen thank you for standing by. And welcome to GenMark Diagnostics Fourth Quarter 2019 Earnings conference call. At this time, all participants lines are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]

to for meeting today's like Salvo to now Relations Investor conference would turn over the Leigh I call.

Leigh Salvo

Thank all you, very you much for Demetrius joining us and thank today.

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

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

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

GenMark. to conference now Mendel call of the and turn CEO Scott? I'd Interim like over to President Scott

Scott Mendel

Good everyone. all afternoon, joining And Leigh. you, us. you Thank thank for

to it's say honor to be Diagnostics. with like I'd an begin, I leading entrusted Before GenMark

teams. excited of I opportunity me to front our capabilities attractive core this make As in and this a talented of longtime both us, and member have dedicated lead a understanding organization, deep of of the which

molecular systems nine GenMark's of that his this On syndromic leader like I XXXX our become the and to years a to for diagnostic confident in ePlex healthcare launch on behalf significant I us the the molecular will clinical value sustained company ePlex for GenMark With positioned thank the played a offers long-term the of as role cornerstone in Hany of market. expanding ePlex, Massarany in and would and testing. has providers myself, serve exciting testing and he launch of our of am very has multiplexed growth. employees capitalize leading development the

dive our Before front of the like address minds in performance, we I news, recent is test healthcare use and the our The emergence a on many our to recent impacting into XX SARS we center company would and for that development in emergency. and research COVID ways. announced topic X kits global initial designed detection. coronavirus ePlex developing of shipment is our a Today only lives

a Emergency We support test test our the of from existing shipped in access of US design. sites and Use was future our execute market that this week, we course the customers and of for for this meet RUO Beginning to the test last Hong quickly our several virus imperative to manufactured the information not Kong clinical key to customers to was monitor clinical for Authorization to version as these well designed, a this their our ePlex patients. roadmap, less Panel. customers and distributor leverage than as will an and to team for these emerging clear development an It's specific samples. ability have to test our of ability launching month to demonstration of in believe to need. efforts rapidly the a use, to validation allow version While adopt into our submission or a assembled and continue we plan our team's adapt We of potentially this an one RP use EUA shipped on they test in initial to and virus hospitals scheduled

for Moving performance, ahead. that have recap our culture us like on look progress at menu of our Last favorably and briefly to year was first expand panels. launch goals, XXXX positioned and achievements to year our had primary blood through the three identification the business I'd back we

through all was margin and to drive strong I growth. ePlex our second adoption panels, to is to successfully which third launched XXXX, proud these our and strong helped to am The drive revenue of goals. teams that, the revenue ePlex, drive increasing delivered growth placement one gross we In of improvement. BCID say on three

of period. plus. ePlex also pathogen performance, objective entirely base with by of XXXX. Gross season. in revenue as to long-term goal XXXX margins. ePlex over was driven full the our our XX% year XX% flu the up margin margins respiratory expanding million, increased gross revenue revenue XXX of total moderate XXXX, We the was XX.X%, an expectations $XX XXXX. year quarter improvement by XXXX growth our Starting was of in representing were This fourth was by fourth performance to gross from toward XX% inline growth compared strong of for representing successful Total XX.X% by of ePlex for installed to panel growth fueled grew prior yearend. analyzers driven of quarter XX% a main compared million, Demand of $XX.X XX%, in for other a

interest ePlex driven in by commercial placed BCID analyzers total the team in panels. XX quarter, Our primarily our a

not these by analyzers therefore previously a installed were they from customer XX implementation increased US-based analyzers. planned. never and did net as that implement begun of not majority our one placed XX had However, originally to revenues. the due that important to the reassigned of generated It units is ePlex process these The base had reassignment note

our component commitment revenue an recurring of which that to business placements generate a stream, continue is quality important will will We model. our

both XX% platform. to placements. contributing BCID XX% in And both. continuing and approximately were Our that US quarters team competitive of was labs accounts. previously the had competitive of our a fourth in driver quarter placements is commercial Similar greenfield again about to in It's to prior of win the win within primary

onto our cash which fourth profitability. gross margin quarter positivity progress, critical flow improving step is and to a Moving achieving

as ePlex have legacy XX% just Our platform. margins is our gross we goal to from with achieve SGA

ePlex We in overhead are two fourth strong direct drive place next target which three for and efficiencies We output the our continued helps gross Initiatives traction quarter. steadily achieve direct to to material in saw and margins improvement achieved the labor to plans have years. gross the absorption. quarter, manufacturing improving record in drive and margin

in which yields of We range. and margin gross and finished increased end Manufacturing guidance of improvement, our top margin component gross to total contributing with neutral at quarter year the labor both a XX.X% efficiencies. been direct gross also margin direct have key was of XX.X%, the

additional We pleased and chain further yield, direct supply in that process. to and through both are capacity scrap with improvements material improve manufacturing production cost very progress during reducing manufacturing expect XXXX our initiatives and leverage the deliver we

making XXXX main technology cash continued growth. strong three one operating menu efficiencies. steps improvement Two significant our three positivity Looking are, flow advancement. through growth, and And revenue priorities into ahead towards gross margin and

I'll drive strong growth. our start priority with revenue to

the XXXX analyzers three revenue can into from Our additional from placements in XXXX. revenue existing and guidance expected placed revenue and be broken ePlex our of implementation process in Recurring main already down customers, categories.

ePlex already to revenue XXXX our our be use. of routine driven recurring in of majority the expect systems by revenue the We

key implementations they would the to with of are additional analyzers. the of with not addition, last contributor these already I revenue new two along categories placements like year. ePlex extent clinical be spend yet implementation the In completing within implemented a of existing placements will discussing in starting to use completing placed

and that implementation have the BCID of because to majority of in launch focused trending learned our include than variety a within requires panels the these we for our constituents now middle longer been the team the the expectation. of from initial XXXX, timeframe has six three placements of the month process for Since implementation BCID hospital, efforts

highlighting all could With million timeframes will into we XXXX. realize confident as the that implementation additional perspective implementations $XX we of is experience these customer annualized as to process. of Completing put in our much that focus, implementation and how why are we revenue improve funnel annualized generate they can use. current are routine expected approximately clinical are in we implementation revenue quickly in possible increase when To

streamline what steps doing So implemented process. we We've to are about detailed this? the

and incenting specialists to and encountered expedite challenging are help the steps, additional most implementations complete these adding to frequently measuring we teams are We successfully during our the process.

the placements to also to growth year extent be New can implemented and drive within the they revenue are expected generating revenue. begin

our opportunities. Outside establishing XXXX commercial America In with many teams levels, XXXX, US Asia. the expansion US XXXX to likely expand, we broad global continue we and our at Latin which those but with of expect distributors Middle reflected to panels Europe, will placement the to BCID in results not the East, inline driving drive

in the strength range, We to measured our XXXX guidance market have placement expansion. reflecting international a continued established and US approach

on priority, in improving progress gross ePlex we Regarding our second expect margin continued XXXX.

and already reductions labor should through volumes. are implementing drive teams Our improvement production improvements we direct experience increasing direct absorption continued overhead material to and

outside margins have This less through. important the the our is will of part an on of annuity As pool US revenue driving in cash the US. closely flow placements than analyzer positivity, much also and where of monitor focus we area been improving focus generating

placement US average placement In US. nearly outside that the the is fact, times X of of

in This margins our a to long-term well on including inline existing evaluation placement drive discuss ranges are as ability country-by-country that performance placements we revenue XXXX placements result, an our per and important guidance As Johnny their is adequate shortly. carefully goals. will factor reviewing evaluating as revenue with

and expanded In revenue areas and drive on margin than that maximizing will to be that to time international expansion. return countries our resources in those more on and footprint XX investment laser-focused we growth allocating and our XXXX, we XXXX, can both

advancements, focus. development of third our area to priority panel Turning technology is GI the primary our and of menu

phase best adjusting on key process of the in panel. across which team obtain parameters performance assay include Our and to manufacturing the optimization is the all development, both targets

late begin should in submission to Our is half XXXX. clinical trials first of result in regulatory goal in the which XXXX,

technology and of been key have which software competitive In advantage. new features to of addition, feature future new advancements the the development platform, enhancements for as well developing additional pipeline as working our ePlex's longer-term support on team products we teams have a ePlex

a well-positioned profitability revenue as and technology established our continue ePlex multiplex continued strong value menu margins are improvement. armed a to improving and with and hospitals testing, to To conclude, growth Through system, best-in-class we has transition near-patient, drive to commercial advancement, experienced team, molecular proposition.

to financial year for I'd over full now the our XXXX. call and quarter like results turn Johnny review fourth for for a the to the guidance of

Johnny Ek

quarter provide full I'll fourth Thank you, and on additional the XXXX Scott. highlights on our financials. details now year

to previously was the XX% to US XX% customers grew XX% Revenue $XX fourth fourth Sale with over quarter the of quarter versus for vast growing revenue of our mentioned, account year year with growth $XX.X to million revenue. ePlex up of XXXX over majority year continued for million XX%. revenue XXXX XXXX full As revenue $XX the to million. ePlex

XX.X% of FDA. the meaningful annuity composition The $X.X highlights was continues revenue average versus profit $X.X our XX.X% of fourth of quarter the quarters. for revenue million, shift relative an average business. XXXX. the last million or of ePlex over the for quarter margin ePlex same was in of Fourth several of in XXXX, $XXX,XXX,which ePlex the represented higher XXXX in $XXX,XXX The full which was sales year to to annuity the quarter that quarter At ePlex for for the placement fourth product gross the expansion to revenue X% fourth time increase

in a have year costs of improvement points is materials Margin leveraging the XXX our improvement of while of ePlex This drive by direct Gross increased to XXXX we down to manufacturing initiatives for gross margin labor and the basis identified. of result XX.X% execution pipeline full on plans the revenue.

representing were development. Total increase our Total in BCID on operating live the year is were for compared the validation go for use, ongoing of quarter to XXXX. $XX.X result to million. increase $X.X million and expenses over of the systems and quarter, the expenses XXXX addition with an the The of fourth menu technology for $XX.X million placed prior focus operating expansion

into those a quarter of million to cash. cash $X.X loss balance revenue $X.XX, in fourth sheet $XX.X in of the in We by and of build significant the working capital, quarter an in million capital per accounts use primarily $X.X ended XXXX used perspective, working as driven compared of of to DPO we specifically, XXXX. fourth days, $X.XX with XXXX days million. million the quarter XXXX, a quarter share a From will DSO prior receivable cash the for of increase investments. and convert $X.X of XX million fourth approximately changes Our of versus growth With over $X.X increase year, net quickly in of the operations result DSI components XX XX of we inventory was days cash and in in during

along we along under in $XX through cash These milestones financing events our and facility million meaningfully our expected confidence predetermined sale our usage, give added Additionally, flow to existing with cash with fourth two credit achieved under us million operating provided $XX.X sheet, of towards our ATM. quarter,which our reduction balance in positivity. shares certain in a the our the strengthened balance path sheet,

guidance to XXXX. Turning the for full year

We expect another our year. usage in in XX% growth management revenue of should expense of strong deliberate and versus which, almost operating result expansion, with a margin approach ePlex year to operating continued reduction coupled cash prior

revenue of ePlex XX% range growth to the of the We $XXX million million mid representing with year range. year XX% dollars in midpoint expect be total in expected over at $XXX revenue to the

As will improved utilization recurring revenue focusing ePlex strong Scott are our we placements ensure earlier, streams. efforts on noted and that analyzer

anticipate As gross We anticipate to we million. reflecting range XXXX more and per XX% approach be strong to XX% to placements and a from internationally, average XXX $XX between margins $XXX,XXX. XXX placements annuity and operating range result, of ePlex analyzer XXXX million and the in measured $XX $XXX,XXX in between analyzers, continued expenses with US to a

to We prepared $XX in $XX million range million. usage This to our be concludes cash remarks. expect of the

would for the So at like your to Scott this questions. and time open I call

Operator

Blair. Weinstein comes Instructions]. line question And with the first [Operator of our from William Brian

proceed. may You

Brian Weinstein

your I'm to and your thing. convinced is can is a else? not so it can the ramping Hey, question, is Korea are, single I'll that? into about a Thanks. you opportunities, a specifically guys. but about where do testing about XX And anywhere how talk the you is manufacturing questions. Is do you COVID talk of up? you selling large can installed here, testing this about, not capabilities base Should just Thanks talk and pricing broader confirm test. and most is China around obligatory degree higher for taking this Plex areas but need being so panel, also your like this can you're you there and added what that's

Scott Mendel

Brian. Sure,

target this that test. So, our we said you test as why objective single was is chose Speed that's so path. a and primary

manufacturing if upon increase in from they test to that, most single RP about XX single you Brian and tasks, negative. target the broader have our panel based seasonal. is obviously RP Panel because if the consider volumes. plus we I when first rolling we It's feel would manufacturing pathogens capacity a into As important throughout continues comes contains perspective, remarks, mentioned be capacity that, this even run think to that, up feedback customers we would in handle to likely been up XXXX this all the virus prepared the reflex would Panel, and it potential our we prior ramping From then appropriate it and the our and have a and to note that, patient the

is a they therefore would run specific is test potentially in agree could an with and it simultaneously, outbreak expectation tests both but Now, you. if we our a be region, there reflex

there's concern While only amount and we're this going in. first drive to in think an the important developed certainly one it's a quarter, really it, which to we have volumes left tremendous it's health and not at month pleased of don't time

And as lot much their concentration know limited obviously of largest where more more to limited As some US far as is. but material. and our the in distributed, gained that's then to the customers distributor quite And a some you how nothing of basis bit are Asia, in a of traction also relationships our lot labs a has ePlex in we a speaking to who that's on understand have needs. much a we've been so

the all was I there, not. answered bunch think them I you there of in a that had, there's questions whole

Brian Weinstein

answer maybe the that I pricing? only you appreciate And of second can question one The all you didn't was hit here. as part that.

at of range of extended are we've kind Is BCID was we diagnostics. guidance due on. that live, bit little others area in look of that for the kind originally obviously is when the for lower from go heard than timeframes XXXX commented which to that So what a involved

the specifically some back just and through there. you can your of that's I timeframe go you're are. expectations through improving So go question how to more examples then go And specific that what on live

Scott Mendel

Sure.

our phases range we something with what for anticipated to XX, in like thing the of in COVID launch initial at respect just it patients. to this are time. So pricing Again, the was for do on panel of RP pricing felt customers the is would right the and we

in more driving than that it upside. revenue for question, you As is your additional mentioned original for

As it relates to the guidance range.

today through into range into we volumes, season that a the and consideration US. year, be proving far more guidance the to a takes the So way our consideration flu thus all which measured is this our February outside takes approach also then provided experience moderate from

mentioned timeframes revenue to area appropriately a You got it we we've this that improve and what drive is think for doing will timelines lot dialed in of at it because growth it, an or we're important BCID us, US. the in of time. opportunity But

is that putting to back to timeframe of we resources that time, six a US. and teams the moderate that a the flu more that over approach outside and today month Our really on But implementation. get season reflective ensure guidance is range measured of our we're

Brian Weinstein

Okay, great. Thank much. you guys so

Operator

Tycho JPMorgan, Peterson proceed. from comes you with question next our may And

Tycho Peterson

on taking with that elaborate of measured I placements international geographic leverage the you're changes making? year. expansion making a actually mention more last approach you stronger additional did Can balances thanks. Hey, mean, you

international the comments like a the And in guidance change are ago. that's exactly it doing minute the of your what bulk different markets? So for you sounds

Scott Mendel

of the and importantly, in are we we're what is the and go by from a that's from revenue earlier relationships, doing with these and where what for line where change year, country exactly drive that this Tycho, understanding are a country established bulk to placements right. guidance looking margin growth, at Sure, perspective. That want to is gross potential as we've those we

in as but that the talked that I Europe near they do level. prepared So that's somewhat about anywhere we placements my be what US remarks, earning expected, in counterparts at are what not in not have to obviously the

sense allocate that focus main that the for the earning as that a making making likely that these time strong our in resources revenue, sure So margins. sure we then annuity, the make units ones generate that well is, not us where are economics and the strong to most for as nice are strong

revenue. Again, last to than to lot more a as both us remarkable, of and think that significant on we investment, We guidance year, placements generate we XX I and not on the as change to it's on flags, had countries, up which return expansion. expanded to planted well is on now ranges,

Tycho Peterson

And of then just XXX XXX, the a to about been some on bit that I'm annuity guidance curious a at we'd is why XXX systems pull-through, of the pull quite phasing out these modeling flu below lighter through season internationally? and is lower below still expectations. what function is

Johnny Ek

This placements for is the range the placements what's of for Johnny. Scott year. driving XX that year those if mentioned, to really Really the pull mid for the expected annuity full that, year and Hello. at look of externally, through then as sort for contributing the that is you utilization

Tycho Peterson

contribute quantify you then what quarter? this in can did And flu

Scott Mendel

specifically. not So,

I revenue moderate We season. talk us, would just with it's felt inline flu expectations yet. say, those moderate quite about to are a current very quarter not for the and going to

impact closely, volumes? general for COVID don't a yet. now us. and something like be has we to felt earlier Now, flu but that for testing back moderate experienced to what XX have to right monitor the been with know the going Tycho, on it We volumes consistent have have we've That's might question, season

Tycho Peterson

Okay. Thank you.

Operator

next question comes Matson our from Mike Needham. And with

You may proceed.

Mike Matson

of why being kind of directly test, small. the so sort would reflex I Yeah. be can coronavirus test that impact The of a that understand

your get respiratory before So I regular what coronavirus testing? see about, your as test, of to even the demand patients do reflex a they result you for expect panel guess. Potential more

Scott Mendel

Yeah, Mike.

a and is definitely in like like what the possibility of know more volumes. starting it's I as here would, the unfolds. there our potentially the and situation really of in it drive this US will So early testing to where you which Like life we understand that customers said, the is just said, It's we're additional are. majority I cycle virus, think

product. we're versus is, think environment if the hospital I if if It's on. may and have they testing in impact go that our GenMark certainly in testing remember we'll know to are the the or pretty something for monitor at unfolds. But, citizens they, caveat getting to the an patient we'll yes. not additional offices if about mainly early Because doctor's as hospital that situation and

Mike Matson

the regard markets of markets those eliminating with And it markets why testing? in Is a that or thanks. much just Okay, price versus lower think utilization is really to do the high their cost that's adoption or been adoption the the then just international those so panel too Is there has something else you for US. issue?

Scott Mendel

it Yeah, we good over my I also market for have it. the a market is know will to that, an meant presence. much think know it's to more that are global the US long us a and is What to but We be, measured convey taking main we're important comments approach term. it's the exciting do question.

to like measured would in I so, just got to And testing expect longer-term. address to much technologies based not molecular. general, an US in be us outside of we the lower on for fashion. it adoption it's multi new communicate opportunity plex than In mean that volumes more volumes the We don't and a US

in is are But said systems have United utilized. placed would fully So per that do years to were prior to that, having don't sure we that the States. the work some make same we it the that be in unit volume the being it think ever

to of them evaluate a need go they we and we But that you can tell see are and large do not more a percent would fashion would those there's that that than what being to revenue in I I we through So expect. are on pool units. generate think stronger half utilized there's

Mike Matson

thanks. Okay,

departure any if any color on on wondering have. additional that, if I just Finally, I That's Thanks. not understand. you provide all do

Scott Mendel

I'll of the what for time about Hany board agreement reiterate in earlier of enters it company strong next the the just towards a was natural and That phase to transition it's a its cycle make kind a revenue an we're an that life and in Yeah, and, as and balancing was and seemed it like positivity, February. talked with eye time growth we it transition.

Mike Matson

Thank you.

Operator

And our Ji with next question Sung comes from Nam BTIG.

proceed. may You

Sung Ji Nam

for Thanks taking questions.

First your timeline of what's would and of and products possible, that. the with all, and panel progress the differentiating for your congratulations and for about GI you talk also And may you on you what's size factor extent Scott things comment -- that. like the for might to the providing be could kind you're panel what be on be there. able already at to looking out versus the

Scott Mendel

that the bacteria size, you viruses, And would panel designed have needs. we what disclosed task market address understand it's I parasites. tell but yet pressing to be include to Sure, is the and most so not we to we virus, designed

it's workflow has So that a down ePlex will the competitive of to the from rest the advantage be as and proven for results the for of is same streamlined ePlex. panel the it makeup takes not for timeline. We'll be a advantage exact we more It'll actionable competitive The But the but advantage that rapid gives of purposes. panel. we're a disclosing big also appropriately coverage as perspective, be the panel sized. progress we think details share

we brings And So by panel be hits so then the popular and believe it'll the that a valued to the our needs workflow leverage customers market. of that that ePlex is market is

Sung Ji Nam

just then the thank on And coronavirus. Great, you. more question one

I season, test it COVID EUA ePlex it, you. kind ROU Current for within but how missed customers, And And to season? then did also customers also thank the if what's about that long XX. would for flu could the guess, Or validate I timeline? for channel Sorry think the talk you of take you the during approval? the do with that, flu this? timing happen existing

Scott Mendel

Yeah, good question.

and probably XX labs flexibility aware, adopt has are FDA to provided additional for COVID So from perspective, you as high tests. complexity the LTD

so certain think will that fashion have opportunity customers where is quick others. I more And a RUO much in adopt to to that test than our the

say, how in as assume our takes, it able that, our the long are design with of focus I'm not would now RUO I can test. positive. end our far it. and would next our season that in and application would weeks an be tail a be RUO season, estimates using it's and those area validate available can as of quickly assuming of that flu the of week So the application upon are and or granting somewhere address in testing, to right that say timeframe, hopefully, would and for to our the or From to and samples. main therefore we're customer-by-customer an based most really so, as that's far have flu our test. that end of that I completed would timing I it's assume the that two perspective, customers one information target from would as COVIDXX the validate four how customers review the obtaining month clearance they that and dependent, currently towards it extend EUA would current I expect clinical that this to I this season. flu submitted doesn't be But this type normal EUA,

Sung Ji Nam

so much. you Thank Great.

Operator

Masucci Max Genuity. Canaccord from comes question next our from And

proceed. may You

Max Masucci

$XX already the called one you're that to guidance, driving the Is remarks. million are what prepared What's How that potential on what's layer ePlex? in included, expectations the out any? relates and utilization guide, the placed XXXX it and the is there for first assumed excluded if So, as in deeper. of going they're much the opportunity, it you implementation

Johnny Ek

this Max, is So Johnny.

up in build is, it about that stated think ending that to sort is, layer think year. an of pretty base our what of year and $XX how from this revenue, about an year perspective and annuity do we've installed then a you XDA to way number kind we've think for mid XXX to then what come the in last you If year, easier up you million right? easily the the of you done historically and

easily portion million can upside that, the go range. that of all we on on And factored, $XX have certainly into get portion of guidance get mentioned, assumed to as to And perspective able a if live get these to Scott this and and kind appropriate we annualized analyzers that opportunity, need of assumed a revenue. and to to up our You current our amount BCID then, guidance. to to achieve we year is were in we've that risk turned of a from

Max Masucci

great. then sticking those just specific Okay, And boxes. on

the and guess and I net gross So, the between, the difference placement.

the live why customer address those what go reason So, units forward? and was what sort that to with going of you doing didn't are that

Scott Mendel

is Max. Sure, This Scott.

definitely happen at I like said, has in of and change it I from does really technology. definitely wanted them to the a far where anomaly. implementation client this and change is conclude with like really as that an from a and change represented do in would an and So It just units the It use, time-to-time management it and clinical the priorities an management. anomaly, was in to I number a said, say do of was customer that one manager large what as adopting bit doesn't of to were majority

Max Masucci

bit just me granularity forward improvements more one can then can, look year? upcoming a And give as to this I on great. right, if specific we more All manufacturing you

Scott Mendel

do can I that. Yeah.

would amount increasing direct direct is absorption price material direct mainly some handful direct really reduce during material. drive little like significant couple focused, And manufacturing the as to there's they're perspective, those will I of to savings the production a projects to reducing that the naturally used related at of from just So, labor expected the process, mentioned, as of different doing extent and and are bit purchase the the savings team and on increases well say a overhead material parts. lesser that with I volumes. looking some vendors material help a

really feel And those those. is in. projects, the discreet very about managing we I'm to good some get very really So well. team excited rolled them again,

On it example, control processes teams side, an process the to relates direct identify really it's streamline as in points. upon labor as quality reliant our

some there quality cost these the much of is consumable amount of team it and and make efficient for our control therefore opportunities that in labor direct produced. techniques more some reduces improvements that So manufacturing are per automation some

the also direct XXXX So into labor got it XXXX. manufacturing have funnels on like both team's then into drive they beyond even just improvements opportunities the And teams The have costs And funnels, XXXX. to side. even XXXX. direct throughout have a material funnel nice and teams

Max. feel about So that good

hands their got around got it, progress. and they're arms they've on their think making handle it, or a I good

Max Masucci

for taking Thanks the Great. questions.

Operator

Mendel gentlemen, and Ladies closing portion like today's would I this the Q&A of remarks. concludes Scott our call for to turn to call.

Scott Mendel

forward for joining you look Thank we'll the support. thanks. to continued you updating And future. on We afternoon all us you soon our your this thanks in for and talk progress to

Operator

and Ladies call. today's concludes Thank this you participating. conference gentlemen, for

may You day. now a great Everyone have disconnect.

GenMark Diagnostics (GNMK) 2 Mar 202019 Q4 Earnings call transcript