Many of these institutions have never heard of Fulgent Genetics before the pandemic, and now, we have proven our ability to deliver large volumes of high-quality tests in a quick and efficient manner. Brandon? The Picture Genetics platform currently offers multiple tests, providing medically actionable, clinical-level results with professional medical follow-up in one easy process. You feel comfortable kind of at that $40 million reported revenue for genetic testing for the year. The success we have had with COVID-19 testing has allowed us to expand our go-to-market strategy. In the third quarter, I think we have proven it in practice. Our record growth in the third quarter is a true testament to the scalability of our technology platform. For years, we described ourselves as a technology company providing clinical genetic testing, and we have continually emphasized the power of our technology platform. Clients are choosing Fulgent COVID testing offerings for a variety of reasons, including our rapid turnaround time, supply chain availability, capacity, EUA approvals, our technology platforms, and user-friendly systems. Who knows? On a non-GAAP basis and excluding equity-based compensation expense, income for the quarter was $49 million or $2.08 per share based on 23.5 million weighted average diluted shares outstanding. Fulgent’s reporting solution will then deliver reports directly to patients’ mobile phones. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. However, since the day we launched our COVID-19 test, we have delivered results within 24 hours. So I'll reemphasize what I said. The Blueshirt Group Yes. Great. All of the above, Rachel. But that's not the way we do, OK? So some are exclusive, some are not. [Audio gap] their decision to do that. So with this organic growth, I think we are going to focus in the area of cancer, in the advanced cancer treatment, how do we provide the precision medicine. COGS per test for the quarter was $25, an improvement of approximately 42% compared to the second quarter. So a lot of these contracts are laboratory services agreements. Entry Level (19) Mid Level (2) Upload your resume - Let employers find you. [Operator instructions] And there are no further questions as of this time. The Picture Genetics platform provides a holistic approach to at-home genetic screening by including oversight from independent physicians as well as genetic counseling options to complement Fulgent Genetics’ comprehensive genetic testing analysis. Let's conquer your financial goals together...faster. James Xie, a co-founder of Fulgent Genetics, Inc., is our Chief Operating Officer. And I would say a majority of them do have some legs to them, to where they're going to stretch many months and deep into 2021. Your line is now open. Despite massive increase in volume that we experienced, we delivered results to our customers without any issues and with best-in-class turnaround time for RT-PCR results. So I think our longest one we signed so far has been 24 months. Yes. And I'll turn it over to Ming, who can give commentaries on the vaccine. With the momentum in our business [Audio gap] revenues of $17.8 million from a customer who wanted to secure their position in delivering our services in the future. There have been some attention-grabbing headlines regarding cheap and fast antigen testing. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. So we definitely could program or repurpose some of those equipment, getting into the mix of our complete automation for the lab automation. In the meantime, we continue to add contents and add additional tests for our core business to address the growing need for the genetic testing market. Since obtaining the at-home EUA from the FDA and formally launching our Picture test for COVID-19 in mid-June, we have had significant demand. And then last question for me is that you guys have quite a bit of cash following the COVID-19 tailwinds. This program went live in October and we are now collecting thousands of samples per week throughout New York City. Rachel Vatnsdal -- Piper Sandler -- Analyst. Testing is expected to begin January 2021 and will continue for at least 18 months. So number one, our total fixed assets, and the equipment purchases for the year is going to be between $10 million and $15 million. More so than ever, we are working closely with the payers and are making progress becoming an in-network provider. Fulgent Genetics is another positioned -- well positioned to meet the time challenges, but also, we'll be able to perform in this market at any price to compete in this market. “Miami-Dade residents now have improved access to reliable and fast COVID-19 testing. We're not only to use our test for the COVID-19, but we also put our other genetic tests. We see these contracts going deep into 2021. Great. I do not believe that COVID-19 will go away easily. Management's prepared remarks, including discussions of earnings and earnings per share, contain financial measures not prepared in accordance with accounting principles generally accepted in the United States or GAAP. We if look at the contracts, they range from month to month to 24 months. In addition to the momentum we had with our COVID test, our core genetic testing business, and sequencing-as-a-service business have remained strong. Displayed here are Job Ads that match your query. And, Rachel, Brandon. With this increased visibility with the payers, we can now tell the Fulgent story and show the value of having our services in their network. “Rapid turnaround times for testing are vital to limiting the spread of COVID-19, and Fulgent Genetics promises efficient processing, within 24 to 48 hours of receipt of the sample.”. During the third quarter, we filed over 590,000 insurance claims, an increase of almost 9,000% over Q2. I will review the highlights from our third quarter, before I hand it over to our chief commercial officer, Brandon Perthuis, to provide updates on our commercial success and the go-to-market strategy. Results will be delivered to patients within … These include huge hospital systems, some of the largest specialty care clinics, government agencies, large companies, etc. No, that's super helpful. We also announced in the third quarter that we won a competitive bid for the entire state of Ohio prison system to provide testing to their 12,000 employees. Like I said, some have exclusivity, some don't. Some of this we have announced publicly, but we have won a number of additional strategic customers that we have not publicly disclosed. But oddly enough, it seems like we're on track to meet the original guidance even before COVID has hit. So we're also on the private side as well, not just the Medicare and Medicaid from the CMS perspective. Antigen testing is intended to be used for only symptomatic patients within seven days of symptom onset. Fulgent Genetics, FLGT; Department: Clinical Diagnostics Lab; 4978 Santa Anita Ave., Suite 205; Temple City, California, United States 91780; Phone: 626-350-0537 And, Erin, remember, the COVID-19 test started at $50. These contracts have been with government agencies, municipalities, big companies, you name it, colleges, sports conferences [Audio gap], Rachel. At the same time, our clients are confident using Fulgent [Audio gap] volume. As Ming mentioned, we made a small investment in a company called [Audio gap] antibody and antigen testing capabilities, as well as assisting in the developing landscape for therapeutics. Non-GAAP operating expenses totaled $9.2 million, up from six [Audio gap] quarter. How long do you think that lasts thereon? Operator, now, you can open it up for questions. It is not just influenza in COVID-19 that can cause respiratory infections. Most labs could not survive with that price, so CMS increased the rate. Great. To that end, we believe the investment we made to build our COVID-19 test initiatives will continue to benefit our business in long term. Since March 2020, the Company has commercially launched several tests for the detection of SARS-CoV-2, the virus that causes the novel coronavirus (“COVID-19”), including NGS and reverse transcription polymerase chain reaction (“RT-PCR”) - based tests. And as Ming indicated, the CMS reimbursement rate is $100, and starting January 1, it stays at $100 as long as you're able to meet the turnaround time. In the third quarter of this year, greater than half of those customers were new, right? We continue to believe that the COVID-19 testing is quite durable, right? At the same time, our gross margin improved by 19 percentage points sequentially, with the operating expense only roughly doubling on a GAAP basis, which translates into operating income of $63.5 million and a record adjusted EBITDA of $67.4 million. Can you just give us some more details on some of the contract terms that you guys have won? Why Fulgent Genetics Stock Surged 38% in November, This Small-Cap Stock Will Be a Long-Term Winner From the Pandemic, Why Fulgent Genetics Stock Is Soaring 11.2% Today, Copyright, Trademark and Patent Information. So whatever investments that we're making, we believe that we'll have immediate returns on that. Thanks, everyone, for joining our call today. Ladies and gentlemen, thank you for standing by, and welcome to the Q3 2020 Fulgent Genetics earnings conference call. And based on the explosive demand we're continuing to see from the market and the quality of our customer base, we believe the fourth quarter will cap what has been a transformative year for our company. Adjusted EBITDA for the third quarter was $67.4 million, compared to $3 million in the third quarter of 2019. Results will be delivered to patients within 24 to 48 hours. And as we think about continued menu expansion, you did call out some opportunities with regard to infectious disease side of the portfolio. The vast majority of this volume was from our business related to COVID-19. Your line is now open. That's an excellent point. These are the machines we can use for multiple different purpose. How does that fit in into your longer-term plan from a capacity standpoint? I think the Fulgent Genetics when we get in [Audio gap] we are not highest, the provider. I think as Paul mentioned, we do have some additional leverage in our COGS there. Regarding the on-site testing for New York City, we now have over 60 pairs of boots on the ground to help with school site operations. But with our technology, our capture set, our pipelines, we were able to develop that pretty quickly. Thanks, Brandon. After Fulgent receives the sample, results are available within 24 to 48 hours. Let's make no mistake of [Audio gap] impacted by this pandemic. Brandon Perthuis -- Chief Commercial Officer. We plan to get even more aggressive in our continued investment in technology and to further separate us from our peers in the future. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Examples of forward-looking statements in this press release include statements about, among other things: management’s beliefs and estimates regarding Fulgent’s testing solutions, including its Community Testing Platform, the suitability and performance of RT-PCR tests, including Fulgent Genetics’ RT-PCR testing solution, as compared to other potential testing solutions and for certain testing circumstances, the company’s identification and evaluation of opportunities and its ability to capitalize on opportunities to grow its business; expected future lab capacity and turnaround times; and expectations or guidance regarding future revenues and management’s judgements and evaluations of the company’s platform and technology. So you can just estimate what our cost structure is, whether it be for COVID or non-COVID. Yes. As we walk into each opportunity, we need to make sure we have a sound business model. Last but certainly not least, the technology platforms we have built to support COVID-19 testing have been critical to our success. These customers are not running at full speed. We've continued to bring on new customers. Hi. The Houston lab [Audio gap] away from the Texas Medical Center, the largest medical center in the world. Fulgent Genetics, Inc. is a technology company. Erin, just to give you a point of reference on the reimbursement. These have made managing large volumes of tests much easier for our clients and have connected them to the Fulgent platform, creating deep relationships that go just beyond being an RT-PCR test provider. [Operator instructions] I would now like to hand the conference over to your first speaker for today, the head of investor relations, Ms. Nicole Borsje. We are one of a limited number of providers with this approval and at-home testing is proving to be a differentiator and an important testing tool to help in the fight against this pandemic. At this time, between our headquarters in Temple City, California, and our new lab in Houston, Texas, we have a maximum daily capacity of 60,000 tests per day. Customers are using Fulgent for hereditary cancer, cardiovascular genetics, neurological genetics, reproductive health, and other newer tests that we've launched in the last 12 to 18 months. A cornerstone of the Company’s business is its ability to provide expansive options and flexibility for all clients’ unique testing needs through a comprehensive technology offering including cloud computing, pipeline services, record management, web portal services, clinical workflow, sequencing as a service and automated lab services. This translated to approximately $2.6 million charge below operating expenses. We had $90 million of accounts receivable. Turning over to operating expenses. Third-quarter revenues totaled $101.7 million, an organic increase of 883% compared to the third quarter of 2019. Second, supply chain. We have seen increase of volume of our core genetic tests for a number of new customers. The symptoms of respiratory infections, including COVID-19, are very similar and it can be difficult to differentiate the best treatment plan. Thank you, Nicole. Coupling the gold standard test with our industry best turnaround time makes the Fulgent solution a powerful tool to fight against the spread of COVID-19. As I indicated, the core business grew 57% sequentially, which translates into approximately 20,000 tests and revenues of approximately $10 million to $11 million, which is at a record for the company. For example, what are the terms, and how long are they and do you have any exclusivity agreements? We will introduce the products in this area. I want to visit genetic testing, and Paul, some of your comments with regard to how to think about that portion of the business for the year. As Ming mentioned, we delivered more than 1 million reports during the third quarter, an almost fiftyfold increase year over year, and an almost fivefold increase sequentially. You've always obviously been very nimble here with the COVID response, which has been impressive. [Audio gap] the third quarter was $104 million in cash, cash equivalents, with no debt. These forward-looking statements are subject to a number of risks and uncertainties, which may cause the forward-looking events and circumstances described in this press release to not occur, and actual results to differ materially and adversely from those described in or implied by the forward-looking statements. Kevin, yes, I think in the script I read [Audio gap] customers in Q3 this year versus last year. Fulgent Genetics . Moving on to our outlook. We remain well-stocked to continue to fuel our growth plan. It would demonstrate several things: one, the viability, and the permanence of our business model; two, the efficiency, as well as the scalability of Fulgent Genetics. Especially for the people who get the vaccine, all patients recovered from COVID-19. This has really been important for patient care and contact tracing and has been a huge differentiator for Fulgent. And then a little more forward-thinking. Compared to Q2, our traditional genetic testing business grew by more than 57%. RT-PCR provides the highest level of sensitivity and specificity. This system also includes heat maps and contact tracing functionality. And then we have added a number of people to the organization, but not all of them are employees. In addition to the agreements we announced, there were a few other public announcements from our clients describing their partnerships with Fulgent. Please note that any opinions, estimates or forecasts regarding Fulgent Genetics's performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Fulgent Genetics or its management. The Company has received Emergency Use Authorization (“EUA”) from the U.S. Food and Drug Administration (“FDA”) for the RT-PCR-based tests for the detection of SARS-CoV-2 using upper respiratory specimens (nasal, nasopharyngeal, and oropharyngeal swabs) and for the at-home testing service through Picture Genetics. And we think that's incredibly important. Lastly, we have seen COVID-19 bring us many, many new clients. Prior to joining Fulgent, Mr. Xie served as the Senior Vice President of Cogent Inc., a publicly traded biometric identification service and product company from 1996 until 2011. But because our turnaround time is just getting quicker with the additional volume, we don't have a whole lot of doubt whether we can meet that threshold starting on January 1, 2021. And Brandon can give you some of the details. The breadth of our customer base was impressive during the quarter, with over a dozen companies contributing over $1 million of revenues. So we will be at the market, which will help in personalized therapy and in drug treatment. Fulgent Genetics, Miami-Dade County Partner on COVID-19 testing Miami-Dade switches to the Fulgent RT-PCR test and Community Testing Platform TEMPLE CITY, Calif., Sept. 09, … Congrats on the nice quarter, you guys. We discussed last quarter how the often seen events of this pandemic has really proven Fulgent Genetics is as a company and the results we discussed today to go one step further to demonstrate how the platform is truly unmatched in the genetic testing industry. Nicole Borsje, 415-217-2633; firstname.lastname@example.org, Media Contact: The investment we made in our technology stretches back almost a decade and enable all the facets of our business, which produces notable efficiency and scalability. Great. But we think we're extremely well-positioned to be a major player in this market. As you recall, all our lab management system and software has developed in-house. Thank you. Search Bioinformatics jobs in Los Angeles, CA with company ratings & salaries. Fulgent Genetics is followed by the analysts listed above. Not only that, we have done it the hard way, building our business organically from the ground up. Meaning that our COGS per test during Q3 on a full GAAP basis was $25. The nasal swab tests are being offered by the county through a partnership with Fulgent Genetics and are the same tests given at the county’s various drive-up and walk-up testing sites. While we haven't announced all of our wins, we will continue to publicly announce large strategic wins to the extent we can. We have expanded our partnerships on the reimbursement front and are seeing high demand for tests across our Picture platform. So we think we can play a dominant role in the testing. But are there important or meaningful menu expansion opportunities in genetic testing that you think could continue to fuel this type of growth to existing customers as they expand the breadth of their ordering into a broader menu for genetic testing? How Did Fulgent Genetics Stock Perform in 2020? This is a complete solution for managing drive-through testing sites, including the patient visiting the Fulgent-Miami-Dade website to choose a location, make an appointment, and complete a questionnaire. Thanks. Historically, our customers have predominantly been cash-paying customers, with very little revenue coming through the reimbursement. The company's press release discussing its financial results is available in the Investor Relations section of the company's website, fulgentgenetics.com. It has been important when it comes to winning RFPs and government contracts. So we think it's going to be around with us for a while. Erin, this is a very good question. So you can break out the investments that we made, as well as the spending in a couple of different buckets. Erin, from a numbers perspective -- this is Paul. So we're still on track to meet the $40 million. Fourth, our two EUA approvals. Kevin, the last thing is on the cost side. Our clients are using our applications to run their daily operations. This week, we had the pleasure of joining Osmosis on their #RaiseTheLine podcast to discuss the latest developments. TEMPLE CITY, Calif., Sept. 09, 2020 (GLOBE NEWSWIRE) -- Fulgent Genetics, Inc, (NASDAQ: FLGT) (“Fulgent Genetics” or the “company”), a technology company providing comprehensive testing solutions through its scalable technology platform, today announced a new partnership with Miami-Dade County in Florida for COVID-19 testing. So COVID is not going to go away at the end of 2020. So Paul is right. While many labs have seen shortages in critical supplies such as reagents, transportation media, and swabs, we've had no such issues. We are incredibly happy to partner with the county in their tremendous efforts to combat this virus,” commented Brandon Perthuis, Chief Commercial Officer of Fulgent Genetics. While we have come a long way together in our efforts to combat this pandemic, we still have a long road ahead of us as we look to return to normalcy. Can you talk about your plans for using the money to invest in the business? We recorded a 23 % tax rate in Q3, more than 60. 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