 CARLSBAD, Calif., Aug. 04, 2020 GLOBE NEWSWIRE -- GenMark Diagnostics, Inc. Nasdaq: GNMK, a leading provider of automated, multiplex molecular diagnostic testing systems, today announced financial results for the quarter ended June 30, 2020. Second Quarter 2020 Highlights Total revenue of 40.1 million, an increase of 118 over the second quarter of 2019 ePlex revenue of 35.2 million, an increase of approximately 195 over the second quarter of 2019 Average annuity per analyzer of 188,000, up 74 over the second quarter of 2019 COVID-19 testing drove a material increase in placements and revenue Gross margin of 40, compared to 36 in the second quarter of 2019 Cash and investments were 132.8 million as of June 30, 2020, an increase of 85.7 million over the first quarter Delivered 8.0 million in positive cash flows from operating activities Generated 75.4 million in net proceeds from common stock offering in May Second Quarter 2020 Operational Highlights Placed net 71 ePlex analyzers, concluding the quarter with a global installed base of more than 650 ePlex analyzers, an increase of 48 versus the second quarter of 2019 Submitted an Emergency Use Authorization EUA to the U.S. Food and Drug Administration FDA for the ePlex Respiratory Pathogen Panel 2 RP2 Panel, one of the first rapid-result multiplex panel tests that can identify 21 respiratory pathogens, including SARS-CoV-2 Launched RP2 Panel for U.S. commercial distribution and clinical useWhile we could not have anticipated the depth and duration of this global health crisis, our team continued to deliver on our commitments for 2020, including delivering exceptional revenue growth and continued gross margin improvement. And, for the first time in the companys history, we achieved positive cash flow. This performance reflects the tremendous demand weve seen from both existing and new customers for our ePlex platform, and our ability to address that demand in an increasingly efficient and cost effective way, said Scott Mendel, President and Chief Executive Officer. As we enter the second half of the year, I am more confident than ever that GenMarks business has been positively transformed for the long term, and is positioned as a leading innovator in multiplex molecular diagnostic testing systems.Guidance for Full Year 2020 GenMark increases its total revenue guidance for the full year 2020 to a range of 155 million to 165 million. This compares to the previously stated range of 120 million to 130 million. The Company increased its global ePlex placement to 230 to 250 net new analyzers with an increased annuity per analyzer of 175,000 to 200,000. Gross margin is expected to be in the 38 to 40 range. Operating expenses are now expected to be approximately 70 million to 75 million.Cash usage excluding financing activities is projected to be in the range of 10 million to 15 million.Webcast and Conference Call Information GenMark will be hosting a conference call to discuss second quarter results in further detail on today starting at 4:30 p.m. ET. The conference call will be concurrently webcast. The link to the webcast is available on the Company website at under the investor relations section and will be archived for future reference. To listen to the conference call, please dial 877 312-5847 USCanada or 253 237-1154 International and use the conference ID number 1067506 approximately five minutes prior to the start time.About Emergency Use Authorization The GenMark ePlex SARS-CoV-2 Test and ePlex RP2 Panel have been made available under an emergency access mechanism called an Emergency Use Authorization EUA. The EUA is supported by the Secretary of Health and Human Services HHSs declaration that circumstances exist to justify the use of in vitro diagnostics IVDs under EUA for the detection andor diagnosis of COVID-19. An IVD made available under an EUA has not undergone the same type of review as an FDA cleared IVD. However, based on the totality of scientific evidence available, it is reasonable to believe that this IVD may be effective in the detection of COVID-19. The EUAs for these tests are in effect for the duration of the COVID-19 emergency, unless terminated or revoked after which the tests may no longer be used. An FDA cleared IVD should be used instead of an IVD under EUA, when applicable and available.About GenMark Diagnostics GenMark Diagnostics NASDAQ: GNMK is a leading provider of multiplex molecular diagnostic solutions designed to enhance patient care, improve key quality metrics, and reduce the total cost-of-care. Utilizing GenMarks proprietary eSensor detection technology, GenMarks eSensor XT-8 and ePlex systems are designed to support a broad range of molecular diagnostic tests with compact, easy-to-use workstations and self-contained, disposable test cartridges. GenMarks ePlex: The True Sample-to-Answer SolutionTM is designed to optimize laboratory efficiency and address a broad range of infectious disease testing needs, including respiratory, bloodstream, and gastrointestinal infections. For more information, visit Harbor Statement This press release includes forward-looking statements regarding events, trends and business prospects, which may affect our future operating results and financial position. Such statements, including, but not limited to, those regarding our ability to secure enduring revenue streams extending beyond the COVID-19 pandemic, regulatory submissions and approvals, and plans and objectives of management, are all subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks and uncertainties include, but are not limited to, disruptions to our supply chain, our ability to achieve our updated financial and operational performance guidance, our ability to successfully obtain regulatory clearance for our ePlex RP2 Panel and commercialize our ePlex system and its related test menu in a timely manner, constraints or inefficiencies caused by unanticipated acceleration and deceleration of customer demand, our ability to retain customers beyond the COVID-19 pandemic, our ability to successfully expand sales of our product offerings outside the United States, and third-party payor reimbursement to our customers, as well as other risks and uncertainties described under the Risk Factors in our public filings with the Securities and Exchange Commission. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends, or circumstances after the date they are made.Investor Relations Contact Leigh Salvo 415 937-5404 GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS In thousands, except par value June 30, 2020 December 31, 2019 ASSETS: Current Assets: Cash and cash equivalents82,421 44,360 Short-term marketable securities50,374 9,100 Accounts receivable, net of allowances of 1,132 and 376, respectively17,867 16,759 Inventories, net14,927 11,301 Prepaid expenses and other current assets1,823 1,877 Total current assets167,412 83,397 Property and equipment, net19,420 20,419 Intangible assets, net1,137 1,432 Restricted cash1,646 758 Noncurrent operating lease right-of-use assets4,372 4,642 Other long-term assets1,026 825 Total assets195,013 111,473 LIABILITIES AND STOCKHOLDERS EQUITY: Current liabilities: Accounts payable15,421 12,249 Accrued compensation8,609 7,493 Current operating lease liability1,870 1,842 Other current liabilities3,245 2,732 Total current liabilities29,145 24,316 Long-term debt70,189 69,145 Noncurrent operating lease liability5,217 5,796 Other noncurrent liabilities285 53 Total liabilities104,836 99,310 Stockholders equity: Preferred stock, 0.0001 par value; 5,000 authorized, none issued Common stock, 0.0001 par value; 100,000 authorized; 70,693 and 60,255 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively7 6 Additional paid-in capital615,995 526,294 Accumulated deficit525,925 514,233 Accumulated other comprehensive income100 96 Total stockholders equity90,177 12,163 Total liabilities and stockholders equity195,013 111,473 GENMARK DIAGNOSTICS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS In thousands, except per share data Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenue: Product revenue39,460 18,071 77,813 39,282 Other revenue626 303 1,015 625 Total revenue40,086 18,374 78,828 39,907 Cost of revenue24,235 11,801 46,825 27,471 Gross profit15,851 6,573 32,003 12,436 Operating expenses: Sales and marketing6,285 5,803 12,425 11,712 General and administrative4,622 4,931 13,560 9,452 Research and development7,637 7,749 13,716 14,092 Total operating expenses18,544 18,483 39,701 35,256 Loss from operations2,693 11,910 7,698 22,820 Other income expense: Interest income109 179 241 312 Interest expense2,037 1,528 4,128 2,804 Other expense 4 29 15 Total other expense1,928 1,353 3,916 2,507 Loss before provision for income taxes4,621 13,263 11,614 25,327 Income tax expense63 45 78 61 Net loss4,684 13,308 11,692 25,388 Net loss per share, basic and diluted0.07 0.23 0.18 0. 