Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

GenMark Diagnostics (NASDAQ:GNMK)

Q1 2013 Earnings Call

May 08, 2013 4:15 pm ET

Executives

Nancy Torok

Hany Massarany - Chief Executive Officer, President and Director

Richard B. Slansky - Chief Financial Officer and Principal Accounting Officer

Analysts

Jeffrey Frelick - Canaccord Genuity, Research Division

Matthew O'Brien - William Blair & Company L.L.C., Research Division

Zarak Khurshid - Wedbush Securities Inc., Research Division

Tycho W. Peterson - JP Morgan Chase & Co, Research Division

Shaun Rodriguez - Cowen and Company, LLC, Research Division

Nicholas Jansen - Raymond James & Associates, Inc., Research Division

Operator

Good day, ladies and gentlemen, and welcome to the GenMark Diagnostics First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would like to now introduce your host for today's conference, Ms. Nancy Torok of GenMark. Please go ahead.

Nancy Torok

Thanks, Charla, and thank you, all, very much for joining us this morning. Before we begin, I would like to inform you that certain statements made by GenMark during the course of this call may constitute forward-looking statements. We believe these statements are based on reasonable assumptions, however, these statements involve known and unknown risks and uncertainties that may cause the actual results to be materially different from any future results, expressed or implied by such statements. Important factors, which could cause actual results to differ materially from those in these forward-looking statements, are detailed in GenMark's filings with the SEC.

I will now turn the conference call over to Mr. Hany Massarany, President and CEO of GenMark. Hany?

Hany Massarany

Thanks, Nancy. Thank you, all, for joining us this morning. I'm joined on the call today by our Chief Financial Officer, Richard Slansky. We have a few prepared comments, and then we will be happy to respond to any questions that you might have. Our prepared comments will cover the following topics: First, Richard will walk us through our operating results for the first quarter of 2013, then I will provide an overview on our business progress, and update you on our business objectives and milestones. We will then turn the call over to you for questions.

So with that, I will now turn over the call to Richard Slansky. Richard?

Richard B. Slansky

Thank you, Hany, and good afternoon, everyone. We released our results a bit earlier today, and we will be filing our Form 10-Q shortly after this call. We are pleased to report that GenMark started 2013 with a strong first quarter in which we grew our quarterly Reagent revenues by 463% over the prior year period. Our commercial team worked very hard, and we recognized $11.1 million in total revenue for the 3 months ending March 31, 2013. This was our largest revenue quarter ever, thanks in part to the success of our recently FDA-cleared RVP test.

Our installed base of analyzers also grew to 339, an increase of 42 net analyzers in the quarter. And our annuity per analyzer grew to $146,000 in the quarter. These are all important and significant accomplishments for our company. Now for some detailed financial results.

As I mentioned, today, we reported total revenues of $11.1 million for the first quarter ending 2013, an increase of 414% compared to the first quarter of 2012, where we recorded $2.2 million in total revenues. Reagent revenues increased 463% to $10.8 million during the quarter compared to $1.9 million in 2012, driven primarily by strong sales to existing diagnostic laboratory customers by securing an increasing number of new customers and by increasing in -- increases in RVP sales due to a strong flu season.

Our ASPs were consistent with prior quarters and the growth was due to volume increases across all of our assays. With the evolving Medicare reimbursement landscape, we did start to feel some pricing pressures during the quarter, but not enough to materially affect our financial performance.

In addition, certain sectors of our customer base are experiencing delays in receipt of reimbursement from Medicare. As a result, despite a very strong first quarter, we believe it is prudent at this stage to maintain our annual 2013 revenue guidance of $35 million in light of these factors.

For the 3 months ending March 31, 2013, we placed a net 42 analyzers into customer laboratories, bringing our installed base to 339 analyzers in the field, all of which are in end-user customer labs in the United States market.

Our gross margin for the quarter was $6.1 million or 55% of revenue versus $472,000 or 21.8% of revenue in the same quarter of last year. As discussed on our prior calls, we are continuing to focus on gross margin expansion, however, we expect some declines in gross margin during the next 2 quarters. The quarterly improvement in margin was largely due to volume increases in the quarter based in part on increased RVP volume, which we do not expect will translate into similar effects in the next few quarters due to seasonality. Therefore, we are maintaining our annual guidance of 50% gross margin for 2013.

Operating expenses increased $4.3 million to $10.3 million during the first quarter of 2013 compared to the first quarter of 2012. Sales and marketing expenses increased $941,000 year-over-year due to the increase in headcount related to expenses, including commissions due to higher revenues and as we continue to support the growth of our overall domestic commercial organization.

Research and development expenses increased $3.4 million, primarily due to the expansion of our R&D team and continued development work on our NexGen platform and XT-8 assay menu. We reported a net loss of $0.13 per share for the quarter with weighted average shares outstanding of 31.8 million compared to a loss of $0.28 per share for the first quarter of 2012 when our weighted average shares outstanding were 20.1 million.

With respect to our cash position, we ended the quarter of 2013 with about $45 million in cash, cash equivalents, investments and restricted cash. We began certain investments under our investment policy during the quarter to maximize our yield until we need the cash for operations. We plan to continue utilizing our cash balances primarily to invest in new products and menu development, mainly for our NexGen platform as we expand our commercial organization. Our cash position did reflect increased accounts receivable balances and credit limits for some of our growing customers, along with an investment in inventory and safety stock.

Finally, as you are probably aware, we were proud to report the successful remediation of our material weakness as of December 31, 2012. Nevertheless, we are continuing our efforts to develop a strong and reliable internal control environment for the future of our growing company.

I will be happy to answer questions later, but with that, I will now turn the call back over to Hany for our business update. Hany?

Hany Massarany

Thank you, Richard. I would now like to comment on our accomplishments for the first quarter of 2013 as they relate to our overall goals for the year. As previously communicated, these goals are, first, to continue to drive for high-performance commercial execution with a strong emphasis on rapidly expanding our revenue, market share and installed base of analyzers; second, to maintain our laser focus on innovation and new product development, both in terms of accelerating the development of our NexGen sample-to-answer platform, as well as expanding our menu of high-value multiplex molecular tests; and third, to continue to build a sustainable infrastructure capable of supporting the rapid growth we expect over the next several years. So let's start with commercial execution.

Our sales force continues to perform extremely well. In addition to the strong reagent growth, we achieved 42 net analyzer placements during the quarter. This put us at a total installed base of 339 analyzers in the field at the end of March. Our commercial sales funnels for the remainder of 2013 are very robust, and based on our current trajectory, we expect to place more than 150 analyzers in the field this year. As Richard indicated, Q1 reagent annuity per analyzer was $146,000, an increase of $100,000 or 217% compared with the first quarter of 2012. Reagent annuity was boosted by strong growth in our core test assays and a very successful adoption of our FDA-cleared RVP test during the recent flu season, which started strong in the third quarter of 2012 and ran well into the first quarter of 2013.

Q1 annuity was also supported by continued sales to the emerging pharmacogenetic testing market, particularly one long-term regional reference laboratory customer that we discussed on previous calls. As we have consistently stated, our sales in the pharmacogenetic testing market are dependent on a variety of factors including market demand, reimbursement and new test availability. And based on the current reimbursement landscape and the uncertainty surrounding this market sector, we still think it is prudent to be conservative with our growth projections in relation to this sector of our business. Allowing for the above the usual sales to this customer, our adjusted annuity per analyzer in Q1 remains at around $80,000.

At this point, I would like to update you on the progress of 2 unique tests that we believe will continue to drive our future revenue growth. First, our FDA-cleared RVP test.

Customers and key opinion leaders continue to provide us with excellent feedback about our product performance. On our last conference call, we highlighted a recent published paper in the journal of Diagnostic Microbiology and Infectious Diseases, highlighting the superiority, sensitivity of GenMark's RVP assay in an immunocompromised patient population. In March, the University of North Carolina published a study in the Journal of Clinical Microbiology comparing all of the existing FDA-cleared respiratory virus panels. This paper presents data for 300 patient samples tested across each of the 4 assays. GenMark's RVP assay, once again, demonstrated superior sensitivity compared to all other competitive methods at 99.6% with no variability in performance across age groups.

In addition, GenMark detected 97% of the expected coinfections compared to 61% and 71% with 2 of our primary competitors. We believe that the superior sensitivity and specificity of our RVP assay uniquely differentiates GenMark from the competition and will be the basis of continued adoption of this assay by clinical laboratories across the country.

Another unique test, which we believe will continue to drive our future revenue, is our Hepatitis C Virus genotyping test. As previously communicated, we expect HCV Genotyping to continue to play a very important role in the diagnosis and treatment of HCV patients, especially as initiatives to test much of the potentially at-risk U.S. adult population get underway. The importance of genotyping in the treatment of HCV patients was again evident in a recent new drug application from Gilead, which provides for different therapeutic treatment regimens for specific HCV Genotypes. As a reminder, we reported on our last conference call that we have launched our HCV Genotyping direct test for research use only. This assay was designed to provide more comprehensive genotyping and more specific subtyping direct from serum and plasma samples. Early feedback from our customers and key opinion leaders continue to be very positive with respect to sensitivity, specificity and ease of use.

At the Clinical Virology Symposium held in Daytona Beach, Florida last month, several laboratories presented data from recent studies encompassing more than 1,000 samples comparing the performance of the GenMark HCV Genotyping direct test to competitive methods. The data demonstrated more than 97% agreement with competitive assays. And importantly, on samples the existing tests have been previously unable to genotype or subtype, GenMark's HCV Genotyping direct assay was able to successfully genotype and subtype on an average 70% to 80% of these challenging samples. The first of this data has been submitted for peer-reviewed publication.

Finally, we continue to advance our plans to pursue IVD status for HCV Genotyping based on our recent presubmission to the FDA.

Now let me review our focus on innovation and new product development. As we've discussed on prior calls, our attention in this area has significantly shifted to the ongoing development of our NexGen system. As you also know by now, this is a multiplex molecular sample-to-answer system, which will integrate sample preparations tests including extraction and amplification, together with our proprietary eSensor detection technology to enable concurrent detection of multiple molecular targets on a single-test cartridge. We are designing this system with all the necessary reagents fully incorporated in self-contained test cartridges and the required fluidic movement enabled by proprietary digital microfluidics technology. We demonstrated a prototype of our NexGen system at the AMP Meeting in October 2012.

We're also developing an extensive test menu for the NexGen platform with an initial focus on infectious disease. We will target both multiplex and less complex test panels, where current platform and menu options are very limited.

As you know, our proprietary electronic detection system doesn't suffer from certain interferences and complexities that impact other optical detection technologies. So in principle, we believe that no other available technology can match our ability to perform true multiplexing in an IVD environment. This, combined with digital microfluidics for fully automated and rapid sample preparation, is what underpins the uniqueness of our NexGen system.

We've made excellent progress towards the development of this highly innovative system, and we have a detailed plan for its completion and commercial launch. Based on a recent program assessment with our R&D team and external development partners, we now expect to complete development in the second quarter of 2014. While this represents a shift of up to 2 quarters compared with previous expectations, we believe it is not at all unusual for such an integrated, highly technical development program to experience this type of timeline adjustment. This should not be interpreted to bring into question our ability to complete the project. We are working on minimizing any schedule overrun to our original development plan and continue to believe we will bring to market the most competitively differentiated sample-to-answer solution. Furthermore, we don't believe that this new product delivery date will impact the significant opportunity ahead of us or the success of NexGen in the global market.

Finally, I would like to say a few words about our continued focus on building the necessary infrastructure to support our business growth. As you know, this has always been an area of focus for our company. Last year, we added a second manufacturing line to more than double our production capacity. This line was recently validated and is now in routine production. While we will continue to focus on improving efficiencies across all business processes, we strongly believe that our ISO 13485 certified manufacturing organization and customer support functions are capable of handling the rapid growth we expect over the next few years.

As you can expect, we will continue to strengthen our team with the addition of key personnel in R&D, manufacturing, operations and commercialization. Most recently, we appointed a very well-credentialed head of international to lead our initiatives in the x-U.S. markets.

In conclusion, Q1 was another quarter of exceptional execution and performance for our company, and we're very energized and optimistic about the remainder of 2013 and beyond. Our commercial team has delivered very strong results in Q1. And with recent menu launches, including our FDA-cleared RVP test, our HCV Genotyping direct tests, we believe we are poised to place many more systems, expand market share and grow our revenues over the next several quarters. Our R&D organization is very focused on completing the development of our NexGen sample-to-answer system. This is where most of our attention will be over the next several quarters. And you can expect to see our investment in R&D to continue to increase as we drive to accelerate both the NexGen platform and associated menu development during the remainder of this year and beyond. We will continue to focus on organizational talent, infrastructure and processes. We are well and truly ready for significant business growth.

We will now open the call to questions. Thank you.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question comes from the line of Jeff Frelick from Canaccord.

Jeffrey Frelick - Canaccord Genuity, Research Division

Hany, could you maybe give us a sense -- I know the NexGen has a similar detection system as the XT-8. Just curious on the timeline adjustment, is that more related to instruments or the assay side? Anything you could share with us?

Hany Massarany

Sure. Thank you for the question, Jeff. And let me start by saying that we're not dealing with fundamental technology issues at all, Jeff. So our program is quite unique in that we are bringing to market a fully-automated system with high multiplexing capability and state-of-the-art digital microfluidics, while at the same time, building our portfolio of infectious disease test panels. The system will launch simultaneously with several assays and will accommodate a multitude of clinical sample types and chemistries. So while we have completed key portions of our program, we are diligently taking the necessary time and effort to ensure that our system design is robust and meets or exceeds our customer expectations.

Jeffrey Frelick - Canaccord Genuity, Research Division

Okay, great. And then with respect to the strong placements in the quarter, was there any shift into the customer mix? Did you notice different types of customers, different size of customers, or was this kind of consistent with what we've seen in the last few quarters?

Hany Massarany

This has been very consistent with previous quarters, Jeff. As you know, we're targeting the centralized molecular labs still in the U.S., about 1,000 of those around the country and this is where we place all of our XT-8 systems.

Jeffrey Frelick - Canaccord Genuity, Research Division

Okay. And then just last question, maybe for Richard on the gross margin. It was a little bit better than we were looking for. I know you called out strong RVP sales contributing to that. Any other mix in assays? HCV, was that unusually strong, anything like that, Richard?

Richard B. Slansky

Well, the assays were fairly consistent across all of our assays. The significant increase in volume from RVP did help us to absorb some of our fixed manufacturing costs and some of our higher volume generated higher vendor discounts on various raw materials, which also contributes to a positive purchase price variance, all of which helped us in the quarter to generate a 55% margin.

Operator

And our next question comes from the line of Brian Weinstein from William Blair.

Matthew O'Brien - William Blair & Company L.L.C., Research Division

This is Matt in for Brian today. Are you seeing any changes in ordering patterns from your large customers as it relates to the molecular diagnostics coding changes we saw in the first quarter? Or do you expect any changes as those changes sort of work their way through?

Hany Massarany

Well, as you know, the large customer at MDC represents a large percentage of our revenue. In the quarter, it was more than 60%. And the same product are in use, multiple products are in use at this lab with all, with the focus on the pharmacogenetic testing area. So we haven't really seen a change in the type of tests -- products ordered by the large customer. Can you -- I want to make sure I didn't misunderstand the question. What -- was that what were you asking, if they're buying different products?

Matthew O'Brien - William Blair & Company L.L.C., Research Division

Yes, that's fine, Hany, that's what I was looking for there. Just a quick follow-up then on MDC, sort of the low 30%, that's still a good rate to think about for where you think they might be by the end of 2013?

Hany Massarany

Yes. So we spoke about that before sort of leading into -- from there at a run rate leaving the year in the low 30s and then sort of by the end of 2014 -- leaving Q4 of 2014 sort of in the mid-teens.

Matthew O'Brien - William Blair & Company L.L.C., Research Division

Okay. And just one quick one here, then I'll jump out. Are there any next steps in technical feasibility for the NexGen instrument that we might expect to see here along the next year, and where might we expect to see updates on progress?

Hany Massarany

Yes, well, we have a very comprehensive and very detailed product development plan in relation to NexGen. We've not sort of communicated this plan externally. But as you can expect, we have a lot to accomplish and many, many milestones to meet along the way. And as appropriate, we will be updating on progress in our future calls.

Operator

And our next question comes from the line of Zarak Khurshid from Wedbush Securities.

Zarak Khurshid - Wedbush Securities Inc., Research Division

So if I have my math right, it looks like revenues from your big customer were down slightly. Is that right? And then could you also give us a sense for how the RVP business grew relative to the fourth quarter?

Hany Massarany

Thank you for the question. Well, as you know, we don't report specifically on revenues by customer. I'm not sure what's your -- how you calculated lower sales from our large customer. I don't believe that, that's true, but we don't report sales by customers. As for RVP, again, we don't report sales by product, I'm sorry, Zarak, but I can tell you that we generated more revenues in Q1 from RVP than we did in Q4 of 2012.

Richard B. Slansky

Yes, I can add to that just a little bit because as you'll see shortly, we're going to file the Q. There'll be a disclosure of the biggest single customer. And with $11.1 million of overall revenue, you'll see that, that actually did go up, it did not go down.

Zarak Khurshid - Wedbush Securities Inc., Research Division

Got you. I was just trying to do the math with the 80k utilization breakout that you mentioned in the prior comments. So maybe my math was off. And then just a final question on the -- just your -- as you look at sort of the customer base that's out there, how are you thinking about the potential for another large customer like the one that you do break out in the Q?

Hany Massarany

Well, thank you again. Yes, we have multiple opportunities for customers to do significant revenues with us in the future, and we're pursuing a number of those, Zarak. Some of them are in the pharmacogenetic area. As we said before, this is an emerging area of our business, although we don't know enough yet to be certain that it will continue to be sustainable at the sort of growth rates that we've seen in previous quarters. Nevertheless, we have opportunities in this area, this sector of testing and also other sectors of testing, of course, including infectious disease. And our sales force is doing a terrific job pursuing these opportunities, and you'll be hearing about some of those in future quarters.

Operator

Our next question comes from the line of Tycho Peterson from JPMorgan.

Tycho W. Peterson - JP Morgan Chase & Co, Research Division

Just want to go back in the placements in the quarter. Any color you can give us on how many of these might have been competitive swapouts and how many of the 42 placements were to new versus existing customers?

Hany Massarany

I don't have the breakup, and I don't believe that we report the placements based on those categories, Tycho, but I can tell you that many of the placements -- in fact, I would say the majority of the placements are in -- are competitive wins. And certainly, many of those are in new accounts, in new customer sites.

Tycho W. Peterson - JP Morgan Chase & Co, Research Division

And then were a large number of these tied to RVP specifically? Was that the hook to get them in, or can you just talk about that dynamic having that out there?

Hany Massarany

Yes, certainly, RVP was a contributor. As you know, I said last -- on the last call that in quarter -- in the fourth quarter of last year, we didn't get the full benefit of RVP because some of the large customers that intended to switch over to our test were not able to deal with the high-volume routine sample testing, plus do the validations and the work involved in switching over. And several of those -- many of those did it in the first quarter. So yes, RVP did contribute to the placements in Q1.

Tycho W. Peterson - JP Morgan Chase & Co, Research Division

And then can you give us a sense as to how you're thinking about annuity sales going forward over the next couple of quarters? Do you assume they hold close to current levels, or what are you assuming?

Hany Massarany

Yes, we expect so. I mean, as you know, the flu season sort of has already wound down or is winding down, and it's a seasonal test that's run in the first and fourth quarter. So per the models out there, we sort of expect that the revenues will be slightly lower in the second and third quarter. And then depending on the severity of this year's flu season in Q4, we expect to see a spike. But on average and adjusting for the above usual sales from the large customer, we expect that annuity will remain constant at around the $80,000 mark.

Tycho W. Peterson - JP Morgan Chase & Co, Research Division

Okay. And then just last one on manufacturing capacity. I mean, you mentioned some of the additions, do you have additional CapEx requirements we should be thinking about ahead of NexGen? And then, presumably you'll be running secondary and redundant manufacturing initially as you roll that out, is that the right way to think about it?

Richard B. Slansky

Yes, I would say that in 2013, our CapEx needs are fairly minimal for our internal development and production to the extent that we have any significant capital needs that will be related to the purchases of our XT-8 systems that we place in customer labs. And our future CapEx needs will be determined as we execute our long-term plan as it relates to NexGen. So I think we will see some CapEx requirements once we define NexGen a little bit more, but otherwise, it will not be substantial.

Operator

[Operator Instructions] Our next question comes from the line of Shaun Rodriguez from Cowen and Company.

Shaun Rodriguez - Cowen and Company, LLC, Research Division

So when you say you now expect to complete NexGen development in Q2 of '14, I just want to make sure I'm understanding exactly what this means. Are you referring to -- will this be the target for CE Mark submission, or are you referring to an initial commercial launch?

Hany Massarany

Yes. So we're referring to the completion of development and we expect CE Marking to occur very shortly after. So the product development process itself and the release for sale of the system will be completed by the second quarter of this year -- and I beg your pardon, of next year, I wish it was this year, but it's next year. And then very shortly after is CE Marking.

Shaun Rodriguez - Cowen and Company, LLC, Research Division

Okay. And should we still think about the U.S. timelines as being a couple of quarters behind the o U.S. timelines?

Hany Massarany

Yes, that's right. So we actually expect to submit to the FDA, at the same -- at around the same time as we launch the system internationally. And it's obviously very difficult to predict how long it will take the FDA to approve NexGen. We expect it will be about 6 months, but it could be shorter or longer.

Shaun Rodriguez - Cowen and Company, LLC, Research Division

Okay. That's helpful. And then you noted that some of your customers have been disrupted by the reimbursement reform, which certainly appears to be a pretty common thing in the early going here, but can you just talk a little bit more about the impact this is having on them? Is it impacting their volumes? Is it just pricing pressures, or really just pricing uncertainty that's impacting the outlook there?

Hany Massarany

Yes, it's a combination of things, Shaun. As you know, since the various MACs published their initial schedules in Q1, there have been several revisions with increasing reimbursement levels. So it is moving in the right direction. We believe that CMS has also recently initiated the national level rate-setting process, which will publish final rates in November and then become effective in January of 2014. And in parallel, obviously, the private payers are also establishing rates for these new codes. So -- however, we also understand from customers that Medicare has delayed certain payments, one -- the MACs are working through the rate-setting process. So in general, we believe that the reimbursement process will sort of remain fluid in the short term, becoming more stable by year end with both CMS and private-payer position sort of established by then. But it is a combination of some of the codes have gone down in terms of reimbursement compared with the previous code stacking methods. Some have gone up, some haven't changed, but another factor, as I said, is the delays in payments of reimbursements that have been experienced in the first quarter of this year.

Shaun Rodriguez - Cowen and Company, LLC, Research Division

Okay. And just the last one for me. Can you just talk about the trends that you're seeing with regard to labs running multiple assays or at least in validation on multiple assays?

Hany Massarany

You mean with our platform?

Shaun Rodriguez - Cowen and Company, LLC, Research Division

Yes, that's correct, just running more than one test on a given -- any given sites.

Hany Massarany

Yes. That's very typical, Shaun. So typically, the customers start with an analyzer and -- or 2 and 1 test. They love the system. They want to use it more, so they come back for more and they ask us what other tests we have, and we grow our utilization from there. So we've seen increased adoption or utilization of our menu per customer, of course, as well as -- and that's been also a factor in driving the annuity, the sales generated per analyzer per year in the field.

Operator

And our next question comes from the line of Nicholas Jansen from Raymond James.

Nicholas Jansen - Raymond James & Associates, Inc., Research Division

Question on the timing of potential FDA submissions for the Hepatitis C genotyping assay, any update on -- in terms of the timing there or your next steps?

Hany Massarany

Thank you, Nick. No, nothing specific yet, so we are still in the presub. We've made a -- what's used to be called the pre-IDE submission, now called the presubmission, so that's completed. We're in discussion with FDA to finalize the clinical study design. We're already making progress in terms of sample collection and sites, et cetera. We are going to follow a modular approach that has us submit various modules along the way, not wait until the end to submit it all at once, and that will help with the time to review and approve the submission by FDA. But it's difficult at this stage to tell you when we think this product will be approved by the FDA.

Nicholas Jansen - Raymond James & Associates, Inc., Research Division

That's helpful. And then maybe looking at the balance sheet in terms of your expectations with where you are today, is that still on track to -- would that be enough cash on the balance sheet to meet your plans, or the delay of NexGen have any issue with -- regarding that prior comments you guys made about the cash on the balance sheet?

Richard B. Slansky

Yes, Nicholas, based on our current business plan, which includes the development of our NexGen system and the change in the timeline, our current cash balance will be more than sufficient to bridge us to a positive cash flow position.

Operator

Thank you. I'm not showing any further questions at this time. I would like to turn the call back over to Hany Massarany for closing remarks.

Hany Massarany

All right. Well, thank you very much, everyone. On behalf of our board and employees, I want to take this opportunity to thank you for your ongoing support. I look forward to seeing many of you in the near future and to reporting on progress on a quarterly basis going forward. So thanks, once again, for your time this afternoon. Bye-bye.

Operator

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a great day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: GenMark Diagnostics Management Discusses Q1 2013 Results - Earnings Call Transcript
This Transcript
All Transcripts