NEW YORK (GenomeWeb) – Fulgent Genetics reported after the close of the market on Monday that its third quarter revenues declined 10 percent year over year.
For the three months ended September 30, the Temple City, California-based genetic testing firm reported revenues of $4.5 million compared to $5.0 million in the prior-year quarter, short of analysts' average estimate of $5.6 million.
Ming Hsieh, chairman and CEO of the firm, said in a statement, “We were disappointed with our results this quarter, as revenue came in below our expectations. However, our new sales team has started to see traction in the market in recent weeks, and we are seeing more areas we believe we can address with our broad test menu and operational readiness.”
Chief Financial Officer Paul Kim added that on a sequential basis, the firm experienced a modest decline in revenue. Although billable test volumes grew 5 percent sequentially, the average price per billable test declined 8 percent, he said.
Fulgent Genetics' net loss for the quarter was flat year over year at $1.1 million. On a per share basis, its net loss for Q3 2017 was $.06. On an adjusted basis, its loss per share was $.02, short of analysts' average estimate of a net gain of $02.
The firm's R&D expenses for the quarter dropped 26 percent to $1.1 million from $1.5 million in Q3 2016, while SG&A expenses rose 27 percent to $2.6 million from $2.0 million in Q3 2016.
Hsieh noted that the firm remains "focused on continuing to invest" in its technology and streamlining its operations. "With our technology platform and capabilities in the laboratory, we believe we have the capacity to capitalize on many opportunities that could drive growth going forward,” he said.
At the end of Q3, Fulgent Genetics had $9.5 million in cash and cash equivalents, and $34.4 million in investments in marketable securities.
In early morning trading on the Nasdaq, Fulgent Genetics' shares declined more than 15 percent to $3.35.