FLGT - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 Fulgent Genetics Earnings Conference Call. At this time all participants are in listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to your host, Ms. Relations. Investor with Borsje, Nicole Please go ma’am. ahead

Nicole Borsje

Great, second quarter Good afternoon, call. and Genetics Fulgent the to XXXX welcome thanks. financial conference results

concludes. after On be in and fulgentgenetics.com. the of the assumptions, the Ming replay. Kim, is release Company's be discussing to answers Officer. the website, Executive visit call results statements. press available Company's Relations call statements management's Paul website is today's Management's this and These incorrect. section of the Relations section financial Officer; the forward-looking represent on available estimates The Hsieh, Company's Please replay Chief Investor Perthuis, Investor remarks will call An may Brandon questions to Chief audio to Officer; and shortly based which audio its will prove contain forward-looking Chief views call on the Commercial access Financial your today prepared of current

statements March including of contained Accepted share, measures that for for/or GAAP. forward-looking results these XX-Q previously reflect results Company's calculates more Company website. Generally financial some but description information, GAAP. actual States in related results financial events, the and should filed today forward-looking turn prepared the or financial should and and financial changes different discussions more its of these these understanding over the quarter see and to United remarks make including those differ the the be to Exchange detailed filings the believes update implied share cause per which GAAP the risks, today non-GAAP are of matters As viewed with to has discussed investors a statements, per these Management's second Accounting With may for because or result, earnings with materially management's reconciliation statements measures including no in the to in actual results, income superior prepared with contain including Company's accordance such Please financial to the accordance Listeners on Company's discussing described Please actual earnings most XXXX any for XXXX it in that of presented the they XX, Investor with in not not it described of share they non-GAAP those be cause be the that, comparable of in Management a call quarter Commission, income review and that to expectations. earnings should how forward-looking on useful to now events future financial substitute is Relations to differ any discussions reasons, a changes I'd as the statements. or measures. prepared forward-looking ended in Securities directly discussions the actual is the forward-looking for various Principles not forward-looking Company's earnings the measures risk of rely from remarks, available may per to press results and the including like release the from the to the Ming. Company's results Company future statements described of factors in statements what forward-looking may in by obligation these in The assumes may in circumstances predictions subject uncertainties statements. any may to as listen and to the

Ming Hsieh

strategy. And commercial before to review Brandon success in our handing Commercial updates Nicole. go-to-market on to for you, thank Perthuis, quarter our outlook Paul second the from our results. Good call and XXXX to provide second finally, detail. our Officer, today financial will our quarter and results Thank over discuss our joining will afternoon, you our I and discuss highlights the Chief

Before on COVID-XX. by and saying to business, strategy those our course the start I hearts been want of our who market have by I impacted comment goes to

public in as enable which we proven we much and unforeseen are together drive isolation this our in offering point-of-care policies. implement for pandemic and as critical by to to coordinate information contact ever. capabilities treating this pandemic has and and are brought the The are provide year and follow enable can doing to service spread timeline. – been the the research detection urgency the develop We to have the authorities compress the Moreover, into of across the spotlights capacity our have couple for industry, pushed limit new than demand need of organizations testing specifically, testing challenged and capacities the this more testing of integrated

fight FDA gone navigating with the greater and commercial in both governmental Fulgent scaling industry companies timetable process also and distance public on production and an health, across approval as to public through has new health the serve COVID-XX global customers. While this mind, many is a the company. to our process the accelerated mandates The solutions ultimately proven have needs the for social

technology with massive technology a proprietary company are a scale. We for biopharma built

minimum financial companies following those have this a validation the are win is is results. in has and which multiple a major business being years, the we launch For organically accounts major and to FDA our shown been in platform technology our us investment, inflection multiple able the operational said and differentiator With ourselves and a that by our – tests and in caused the develop between COVID-XX of strong outlook. from for and on now point tests industry. we received have on our who site other And

XX% or to XX% in which on our reported XXXX% commented second our our we we the and over first down continued business volume growth increased accelerated year last in might On QX. go second for fold traditional quarter approximately anticipate genetic quarter call, be detail guidance. of XX that, will from half the Our test testing our Paul approximately

and lockdowns in even from traditional our the growth of signing with rebound However, customers various throughout to saw the momentum was business existing second given regarding the uncertain saw quarter our the flat during record ordered from customers volumes business in with we in of June, on incremental in month in a core XXXX. QX additional our gain healthy industries, anticipate QX the we we businesses continue half what and July strategic the

to platform and customers’ high the has the technology massive wide service. and of opportunities our markets. customer data team spend technology business with innovative system environments. uses and which COVID-XX industry, in the innovative easily and beyond intelligence our of expectations and technologies and variety the technology programs computing software the COVID-XX saturated workflow initiatives fusion pleased overwhelming to technology healthcare enable exceed The scales a unforeseen meet systems. speed were and surpassed from most artificial for is once for large our we pipeline information IT essential teams want in seamless technology these using power and stress core be of platform and program organizations, throughput to by flow computing need those core integration saw augmented is computing and orders is our team customers fusion integration Fusion enabling I technology at and They growing high of the use develop fusion the technology, With are an Our our – strength on in unique to customer of developing working techniques our further testing which we processing deep with architecture the key the quality, results. the service in the large mining to which This has software the technology for part and and tools complex engineering, technology experience workflow a of the highly engineering to demand a few learning database countless ability platform the our the COVID-XX the for also included the expectations software field technology. apply a Recent based technology architecture extensive of large has us data in integrate management. events the information its industry. on minutes to of the developed our the with hyper

the launched test greater We security, of and have reliability, already efficiency. the quality who developed our providing automation, benefit in one platform seen customer major and

QX We our operation up on coming each have track in approximately in reach XXX,XXX scaled and to on over XXX,XXX XX,XXX per quarter to tests quarters.

environments. as all in record our clinical that superior enabled Our pipeline a of we technology is our and in us workflow, portal service the automated success to service, facets a business, cornerstone addition this now had management great team laboratory to systems computing, for sequencing management, cloud challenging have including web information technology service,

X/XX $XXX exceeds prior a have in during have technology in We crisis previous servicing attack contracts the each global times XXXX. experience and who developing of numerous in team of million

businesses to Fulgent. are We also team management prior a skilled experienced have and who officers have

almost headcount the Our today. from XXX has people people beginning of XXXX grown to XXX at over

security demand in chain crisis supply logistics, services able management, business controls, have operational digest been shortage. We orchestrate intensive and our by the who leaning exploitations successfully on of operators for customer and can to senior quality a hybrid data time

capabilities in go who remarkable to FDA remarkable we the from filed in volumes, the launch near business. have the the Brandon? in strategy Moreover, made the greater addition traditional our in market COVID-XX in received the quarter, fueled we NGS now at-home strides As into further by pending turn we including while we genetic be evidenced more and traction tests, also operation to material over details. Brandon of our our should our future. brought EUAs with EUA business will reimbursement will EUAs capacity during have also applications areas making market, call cover will I

Brandon Perthuis

Ming. Thanks,

technology pandemic. the the providers received One the which by a played at-home test second our by than the two fight EUAs this is we for administered the against launched FDA. in role for power At our in we platform and from Fulgent of which June. quarter, Picture we test ever, RT-PCR This COVID-XX Fulgent more and a time, COVID-XX meaningful demonstrated we’ve

has additional will the on the large we more. from some United assisted hundreds with of COVID-XX time, as States issue XXX of it specialty and updates the living care across become customers many We companies, thousands United impressive States, to companies facilities locations, locations, large systems hospital EUA array municipalities and have this in largest spending At available. Fulgent an Fortune of with

provide with of sample. among In competitive to EUA are or just in API HXX, because timeframe is our our other addition, delivering The custom consistently portal from RFP have choosing athletes the conference. availability NCAA recently rapid a won for within reporting time our for student approval, reports and top interface for both methods. XX in of the COVID-XX and median ordering our to receipt hours a ability major turnaround we we the Clients Fulgent testing a industry

As layer, addition have to to an interface clients serve in days, We of than clinics small bandwidth samples in COVID-XX been less large overhaul. impressive a able to an to have we municipalities and three thousands example now large per were Operationally, these organizations. it’s numerous with still sending day

we’ve We per – XX the headcount seven XXX. days are day. running to doubled day, thousand scaled hours three per XX,XXX as from our XX,XXX now a months couple over company now a We’ve to COVID-XX day week, and a per last tests capacity day in

contracts continue meet To to and secured capacity, testing. guaranteed support future key demand scale suppliers. with points we Our for existing the to have this

with has a relationship constraints our a as had supply supply result chain been of While chain we managing zero dynamic a vendors. our and contract challenge, have strong such

has still maintaining case to testing this logistics of our and have our sites for strong. testing the on over in that well largest want for has large venues routine XX,XXX been sites, We tests integrated high managing process, for allow their drive-through challenging end-to-end while be have we employees. now more delivering been help testing customers the solutions. identified rolled of area do to our the part out have three them and A genetic corporations a and testing web-based industry who the To This the as accomplished as to clients reporting. volume

administrators process. managing of for website, The picking first COVID-XX gathering is number sites testing time visiting slots, collection the questionnaire, solution our to cetera. appointments, Community This the set the manage and a a solution new platform. up solution lanes, the and This et patients a sites walk available drive-through location, from completing the test allow is of number of Fulgent complete

run include using their key are On the will drive-through all Orange phones. patients’ County, to contact platform back-end, tracing Bernardino reporting Beach, County, testing of solutions that County report mobile sites. to the Los up this new also in directly Angeles City Today, County San Santa are It and we Clara amounts Long and functionality. walk

This companies solution second testing. Fulgent an COVID-XX want repeat The Enterprise solution do platform. end-to-end routine is to who for is screening the

the a simply a Fulgent. online and scan built provides nasal of customer be later, solution We allows collection employee swab An tubes XX with locations materials. approach to scanner, drop A this box or the simple either sent have delivered to Fulgent platform, offline. and operation collection identifiers, also is solution which to station, the device the hours other are badge pre-barcoded or our mobile new same using barcode mobile to where their be self-administer employee can into version available the electronically employees. reports completed a

results campus. they portal. manage and partners. for the to based test. Picture returning partner The with for collection our are believe platform schools, students strong clients. new be Organizations solution deep is This using the and solution COVID-XX our particularly via pipeline for for to test order additional bulk can the COVID-XX and We powerful The products where COVID-XX is a is can example remarkable. tested quite This demand relationships our Picture to bulk COVID-XX third floor the solution home customers COVID-XX a need order before and these platforms EUA on Picture solutions rapidly FDA in are services solutions suited drive these to technology and is with ability of develop

to our convenience physician a traction at Picture conserve launched a COVID-XX COVID-XX at-home are In resource $XXX signs our We for service and test. critical an valuable we addition to and initially it’s clients, are seeing appreciating cash great test PPE. price. Patients the this of at-home

This integrated efficiencies to However, of across reduced accept how for includes started automated this the shipping. upfront charging is cost recently management is We continued convenience example are our benefits pocket and verification price out drive claims. another the and the Fulgent we entire insurance filing organization. simplified new just revenue cycle system innovative and only insurance the of our the of platform drive insurance technology and bi-directional and will which $XX kit the This factor covers with believe component adoption.

continue Picture as delivery passionate to linked products, Picture or and COVID-XX Newborn, to Wellness, Picture career in offer family and platform be screening including through We easier future. assess multiple expanded want addition to to In to and make conditions. about those testing, to Parenting, start add tests genetic who platform the and for more those test Picture learn testing our their access looking faster genes we model for it to newborn we medically Picture see a will believe a powerful to the

few we to incremental much have last the last been over strategy have our had go the focus regarding to Over year. that’s changed market business and the months,

turnaround our These and times. rare significant added cancer number new result disease, and a During strength, accounts QX, are hereditary reproductive pricing on test of cardiovascular we and genetics. of health, menu, expanding competitive increased opportunities new rapidly commercial

to even country QX a essentially in and faced, we addition our the as And rebound of growth our core as orders mentioned, country our testing were with accounts. the to of the in flat Ming several As increased for new base return with in continues traditional has a opportunities, the business orders to customer result reopen. disruption June genetic fully in business unprecedented expect

our is service. COVID-XX sequencing test from has SARS-CoV-X. sequencing of with look our genome sequence gain seen mention organizations This a also boost as a business as area that to many to momentum other the continues The a of and

trajectory of our coverage this coverage customers, on from developments positive the offerings, payers driven capabilities. validation and by material the tests, and our in has closer of tremendous business been see quality commercial by also volume reimbursement our We

at-home remain on as we delivering market well on non-COVID-XX testing, call as turn the a testing to while the and usage second Over our payers. details expanded to months, the go continuing laser-focused time, clients, commercial the expanding in the updates performance additional expanded our our coming turnaround hour Paul COVID-XX on provide from financial capabilities COVID-XX clients, including provide testing quality over outlook. will to genetic business maintaining of Paul? now from quarter, new acumen our coverage I’ll XX with test our leveraging existing strategy insurance expand and to the

Paul Kim

Thanks, Brandon.

increase the Second compared XXXX. an XXX% totaled million, quarter quarter to $XX.X of of revenues second

Our The our in XXX,XXX totaled business significant the business of of U.S. over volume of momentum. in QX the our revenue of most related was driver tests XXX% remains vast to XXXX% the second growing majority the COVID-XX. U.S. Billable quarter, grew the from representing in quarter. revenues the year. The XX% last quarter year-over-year total

from quarter $XX the $XX a quarter was per decreasing the GAAP quarter. for XXX,XXX. test $XX, on in of first excluding the and XX% compensation was ASP basis, Our Cost equity-based

margin due primary decrease X points gross and mix per improved in points Our sequentially. to X The of gross heavy improved percentage reasons margin for cost sequentially the volume. COVID-XX non-GAAP were test the

heavy even utilization improved the including technology due investments However, in with equipment, our personnel, gross our to the from quarter of our notably the prior platform. operations, margins

operating Now expenses. positive percentage Non-GAAP XX.X%. turning to operating points a improved to sequentially approximately margin XX

for So platform We leverage investments the in across believe extreme operations, model. of facets we to the business the aggressive leverage within what’s year. board sales, a this is G&A, be beginning the our of made and organization of marketing all remainder just our technology proved our power of in including store

was offerings from totaled million quarter. million the of in million expense, Our $X.X million in and million in total $X loss investments the fully GAAP Adjusted to test forward first made outstanding. our investments compensation $X.X since already million, compared handsome we expenses last to these the operating EBITDA basis the the up recovered and second for Non-GAAP was on second $X.XX per average million, that going single or forward. non-GAAP for in look $X.X diluted $XX.X of a share, million the income have the the from for beginning shares quarter. expenses equity-based research, $X.X year, quarter, weighted quarter we common quarter, quarter the a second and quarter XXXX. on a were the up On $X.X operating development we $X.X excluding In COVID-XX return based

comfortable ended balance in the position. cash quarter cash second we with million $XX.X the no sheet, debt. cash with and liquidity remain and marketable to We and securities equivalents Turning our with

outlook. and our We testing reimbursements more robust traction strength appreciating made offering an We Now We platform. our products a and overall and creating to business. moving the we generating we of which time service view up is genetic overall within our traditional in see see our business quarter high of returns by very shareholders. our the as average for and services. technology affordable demand application in testing see our this which for are point all, operate clear for business. exponentially customers as see from capacity, is and $XXX, below platform. more good to we Most opportunity platform, differentiation quality on in now the technology our We able with with inflection sequencing Picture hours we are seeing our turnaround see COVID demand XX combined our and high ramp And demand a ASPs maintain our

demand the which we see science year over project elevated now in volumes the the the quality global the on million million, into the models As a as balance of Fulgent’s the the trajectory continue upward recent XXXX. $XXX market from many shining to test transformation and same Ming stress over for are translates We forefronts we revenues. the business seeing and differentiator. for stress customers, viability has have to and continuing the of our crisis of and mentioned, $X.X of technology explosive tested business Based be to our

square of net Monte. business, our expansion foot purchase XXXX. leverage of share or GAAP and This With same street recently of our million entered than shareholders $XX.X ahead, that building into in the our fiscal is we away translates building. million mile income extreme for the for building our per a exiting approximately Because for income compensation, expected less for in approximately model, the in made on and and stock-based El XX,XXX into $X as $XX expanding non-GAAP Temple outlook a to agreement that our City transfer that a approximately

engineering capacity the familiar per operations tests QX For extra years, several day the the a than this at in double are departments our and our building, XXX% El space location administrative building. eventual very and in our to and into Temple by building of factor Temple With room have we leased bolster software and City a total. in we least with City of Monte more translating XX,XXX compared should configuration efficiency for

our we a implemented Post been per CRO and of X/XX, which business of have time of crisis global expansion implementation. experience, in a an We Ming, El leverage tests will our our experience per based in Monte well Temple events through in and stress. Los excess clients, the lab of similar building Hence footprint our a operators, will to City, our maintain area. differentiate as and $XXX of currently for Angeles the capacity million We be our advice But previous myself Cogent prior previous business software numerous has on day. XX,XXX company in with at utilized systems situation our an from Inc.

former business balance and have billion of of operating over process of company. approximately dollars XX% which We plus delivering quarter sheet for returns consistently margins at quarters to XX%, that to generated XX that our cash

can patient the our public, we years note, questions. open updates to today. joining had final business up the look and now our four who have a As we in for over going Operator, future Thank to facing forward appreciate you it last you our quarters. shareholders for us call since sharing

Operator

first with comes of Sung the Your Instructions] from line Nam Ji question [Operator BTIG.

now Your line open. is

Sung Ji Nam

have in on COVID the the COVID thank taking about are I for the – around you solutions. a doing curious also different few for end-to-end questions web-based you phenomenal everything Thanks guys was Congratulations testing, quarter offerings just you three Hi. Maybe and a testing. questions. just

the of testing spread than of for and out do sources beyond, Will see opportunities? of how the volumes through others? mix evenly those pretty guess, Or types different year of, balance those look you for a three be you situation? you do more I the anticipate more one the As it

Ming Hsieh

Brandon, the why take you don’t first? call

Brandon Perthuis

more test you, three at point, your Sung Thank certainly. on which sort of of administered the but options from Ji. professionally main Yes, and hospital let’s different a we the this add in focus than and back-to-school and have a the or the we’ll testing, towards questions, To probably the drive-through like the at-home actually walk-up clinic, and is back-to-work three sort modalities program.

So, they from of drive-through a amazingly lot a currently, we facilities seeing access tremendous back-to-work lot municipalities, country reopen, as But of testing are testing are we been getting and seeing for volume the testing. and forward, people the are these looking back-to-school demand continues which need. necessity by to to run

actually So, assist we developed have the two that. to platforms

platforms. Here extremely convenient. at one on every those Fulgent day employees of we test It’s our

for testing to back-to-work for going the is back-to-school forward. monitoring. of the continue growth for that’s pandemic important We COVID-XX be incredibly contact tracing, probably and to to fight this areas one think I going larger the So think

per scan to We a to week are swab sometimes so station, walk their employee. test it yourself, a that them employee and employees Welcome badge, make tube, three a to scan that. these built the do solutions seeing we’ve test large corporations minute a easy for their times that less want than away, week, once

are continue if students back-to-school, comments. our the back and with our and to excited to additional any teachers, the helping back-to-work maybe So we helping Ming I help has turn think he really it

Ming Hsieh

IgG, think I in that for we offer do type serology the IgM the addition labs. test

organizations, We NGS research pharmaceuticals. the well the also continue for capabilities our in as terms as

us in the business seen to fighting in have ahead a pandemic lot So, of of we pandemic. opportunities the

course this we Street and as Of our capabilities far we new will initiatives. update adding continue as our to Wall

Sung Ji Nam

Fantastic.

what’s Is guys COVID, follow-up implementing variability are institutions there you a terms routine is lot terms of a organizations, there terms there answered in are on on there different be across testing. helpful. of could Is – different of routine of of would that that. through lot It of maybe strategies? lot recommendations but in the sounds kind If like my of questions the case how variability that walk that in are testing ideal? You one

Brandon Perthuis

Yes, it’s question. great a

there. practice are of there some sort general I think guidelines we out variability. But a is of that lot see

companies test week, test a week. day, a once every wants Some someone times three

some So we see variability there.

that perhaps really case to of for that’s do the FDA fact here test. work only employees employees we do result. place One we the But a they home one that. is and been employees the approved differentiated the a not we their monitoring at mail have work, that that in tested have of at Fulgent We positive their do the can things routine at-home test only past, will house from until or get negative of

most importantly, platforms developed how think how to test, but potentially of So, I we’ve still figure often the to different to much them multiple easier. country is best protocol, testing and make administrate, trying all out solutions perhaps to the

Ming Hsieh

work And then, our Sung Ji, with we partners. also

fully result then call I end-to-end not are few the of would one test the We collection, processing and back. ones, to that a are only sending we offer at-home

are several We partner. customers partnering They that at-home of with a the in the And service. do end application We individually field. kits. We that both And us. EUA with test provide the process. we have organizations file the end provide also is world back-end the do back their a together collection. also certified they processing of how We every front example for

Sung Ji Nam

COVID-XX this about great me, to do year? the time, I of your of was kind And in curious demand testing has on testing. it point. look I you same the think are building of know it, are capacity, redeploy their you how in Thank but further, you at expansion been the about to And out don’t just as like but I sustainability it’s strategies, guys given guys investment that capacity you rather you just the out are for in it’s terms you – strategies Fantastic. there sounds the are significant applications lastly part, pretty future. hear was premature wondering what minimal see have beyond you. obviously capacities then thinking as this there the to at know if the

Ming Hsieh

is enabled do us opportunities. question. to this Ji, Sung many Technology good has

ready processing currently not similar in do the the to capacity a currently produce – could capacity. any could large expand not some single have we vendor try we not not We for supply ourselves. the result we decreases, footing are majority material do a chain, of A, the And We as fact the reagents a infection of COVID-XX do We our legs as easily as capacity do other in have we of shortage. do issues. matter have we counter issues. reagent our rates shortage

that a area. so, Okay, is

quality throw But in markets anything the is, second for also slot got millions slot potential companies coming to pricing admittedly, in try industry, rather people they different come in, you events, fact. the the the to in, prepared this get probably have the our back. you case we of a back of XX% to fleet efficiently diseases to valuation our across results is insurance COVID-XX spend the operating those scaling new $XXX And is during knew prepare But The sustainable seconds to dollars, come and That’s EUAs as the few technology a this thing generate of or margin worth operating have to business could conceding potential that of general, machines, of have business $XXX hundreds – for other something for million operator, have we this you produce we out. we see fees, our just margin, the infectious be a we technology coming, before this worst insurance a who those come filing we the They industry. you outbreaks. with – more open whose At offer for lived improved have continued in – better. $X.XX threw and machines than of them a model. didn’t already certain technology. with terms technology our $XX can up of because in pandemic, a our and because in contracts, for In

the way. is genetics lead If crucial genetics important space. So the to will we healthcare and are confident the in industry, this Fulgent

the technology, back are give only to money. the our waste unlike in matters returns the model people shareholders the and in the business not also We but of we sustainability leader of money demonstrated

Sung Ji Nam

much. Fantastic. so Thank you

Operator

with from of question [Operator Piper Steven the comes Instructions] Mah line Your Sandler. next

is line now Your open.

Steven Mah

Hey you. on quarter. Congratulations there. Thank Okay. Good stuff the guys.

Brandon Perthuis

you, Thank David.

Steven Mah

Okay.

start of in I’ll any out any disruptions I non-COVID-XX be kind lot tests. to I in question, the know it’s just, maybe a core because, kind So, Any on results been there to levels. but you off Has of has sounds genetic with the employees. hung hung there testing genetic there, have up to there know, COVID-XX has a business testing back been core disruptions it’s like it complicated normal a with, business? getting and big out, guys but core impact testing your hired get seem rush genetic of your

Ming Hsieh

question. it’s question. this very is Yes, The a good is good Yes, Steve, answer no.

Okay.

COVID-XX business. of have issues we business traditional and anything? related firm have our Do the our our TAT our COVID-XX important of for those maintained related as have traditional We you We businesses. the see business as genetic lines coming production for key

Brandon Perthuis

I think the your No, main response been. is first no, has answer – it was even no

we’ve continued we times. our is meet in imagine have as automating So are and to done COVID-XX. I different process a turnaround the But good you the can short the quite no. job really processes answer mean,

a our and the customers to continue core We in on business, good pent-up execution new sales the business a bringing of and see some combination teams. demand several by and rebound so

is year COVID-XX States. for no – we incredibly the I almost best United in steps in time turnaround it’s the mean, whatsoever tests an just and XXX,XXX manner. QX with think arguably, last the in impressive did So operating I

just mean, and testing. really the operations am labs, I first forward the I the of to do continuing proud the of proud look technology really to continuing to So, to leverage

Steven Mah

And then, over great. to now capacity. so And okay, moving maybe that’s

that So purposing you you have are new a building. noted

it to can we you a timing? CLIA certified. tests think up to a I said sense in to the XX,XXX You give have getting us new – terms up about day. of scale getting on be a has you speed? building per eventually long know to to get How Can the you lab should

Brandon Perthuis

laboratories. CLIA will wonderful on in actually COVID-XX turn a I’ll a comment second, for CLIA done license. I but Yes, licenses expediting the They’ve Paul job just to

you cutting a I expedited licenses facility, allowing just and testing, matter it’s take in of new an the terms doing of will CLIA actually, applaud point them EUA, us COVID-XX this So, so at Paul let question. really for that get days their are have if an in I you tapes But to timing manner. the of

Paul Kim

up of Temple from that starting Steven, location day. capacity XX,XXX has per City a the to tests location, So,

tests But not the of an of new that tests building, end Monte that has day the Monte as to El have we and capacity the expand to a up think We all to to up one will calibrate XX,XXX that happen XX,XXX lab day. process per per XX,XXX With to that’s time. able year, growing the that calibrate going to lab. El believe at we by be we eventual

Steven Mah

see. I

Okay.

break if give I with can helpful. And and that’s RT-PCR a don’t that at-home test mix us then versus on COVID-XX the can of – versus Now test you us. down, this okay, of know you the But down the break NGS? sort share

Paul Kim

Yes.

give I’ll breakdown. you a So,

XX% So organizations. it We out being mean, tremendous vast I XX% even getting XX% that pharma then, it business over we piece. the have think that traditional as that grow will that, We what Picture, being make of RT-PCR, that actually vast, platform about do that non-COVID. And might of known is the of the with the XX.X roughly revenues think for NGS, COVID a be split. for time growth we’ve - the had, higher some very is XX-XX the it’s small for the we within And demand. was our we capabilities XX% and than see very, the majority then, million RT-PCR. a at-home, that for but

Steven Mah

been talk you about and you I Okay. had That’s outlook a Alright. apologize, bad your then, helpful. have And connection. as

said, you for it? I Did Paul, in contracts XXXX. have hear X.X I think tests million you

Paul Kim

have the supply what you secured all chain from what – so, we No, angles, right.

So, issue the for capacity, as well as supply is an company. not

more our do the of was million for X.X XXXX, year, what than for for million a As we we us balance far into $XXX company. the as outlook revenues top-line translates over said project tests which of to the

Steven Mah

see. I

Okay.

Paul Kim

other $XX roughly we add you up QX did So, if and right, words, revenue. in million QX, of

us the of make delta year to the million for for $XXX leaves million. So $XX the that

close see million if this So, in to And how higher we XX% combined. being doing time, point the and to us look, QX, bit flavor get trajectory of $XXX at to going right want you approximately little anticipate a QX than business we for on is more QX, QX QX.

Steven Mah

Okay.

for? Okay. you the And you these give are contracts, are school, of us healthcare sense on signing, long guys contracts a facilities, can how

Brandon Perthuis

anywhere between Yes. Steve, three a months. There range large Brandon. it’s pretty variety that. XX is to months That in

Steven Mah

Okay.

makes That Okay, yes. sense.

hearing from that I’ve testing. down to people So wanting what lock that are and been their others

So, okay, so, that makes sense.

all congratulations you Okay. questions the I I and appreciate Those have. time guys taken are again. the

Brandon Perthuis

Thanks, Steven.

Operator

We further time. Ladies your and today’s for you gentlemen, conference. Have have day. questions this Thank no concludes a at this participation. wonderful

may You disconnect.

Fulgent Genetics (FLGT) 4 Aug 202020 Q2 Earnings call transcript