SALT LAKE CITY, Nov. 11, 2021 /PRNewswire/ -- Co-Diagnostics, Inc. (NASDAQ: CODX), a molecular diagnostics company with a unique, patented platform for the development of molecular diagnostic tests, announced today financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Results:
- Revenue increased 38.0% as compared to the prior year period to a record $30.1 million, primarily due to sales of the Logix Smart™ COVID-19 Test.
- Gross profit increased 67.5% to $26.8 million, representing 89.0% of consolidated revenue due to improved product mix as compared to the prior-year period.
- Operating income totaled $13.6 million, representing a 13.2% increase from the prior year period due to increased sales and marketing expenses as a result of increased third-party sales commissions, as well as increased research and development expenses related to the Eikon point of care technology platform.
- Income before taxes of $13.6 million, compared to $12.8 million in the prior year period.
- Net income of $11.5 million, compared to a net income of $15.7 million in the prior-year third quarter, representing $0.38 per fully diluted share, as compared to $0.53 per fully diluted share in the third quarter of 2020.
- Cash, cash equivalents, and marketable securities totaled $83.9 million as of September 30, 2021, an increase of $11.5 million from June 30, 2021.
- Operating cash flows totaled $36.2 million for the year-to-date period ending September 30, 2021, as compared to operating cash flows of $8.2 million during the prior year period.
"This quarter brought continued growth and strong positioning for sustainability," said Dwight Egan, Co-Diagnostics' Chief Executive Officer. "We believe that our diverse international customer base, clean balance sheet and steady cash accumulation, in addition to our high-quality products whose performance has been validated by laboratories and regulatory bodies across the world, help us stand out from the crowd and all contributed to our record sales in Q3.
"An important step in our growth to becoming a leading global molecular diagnostics company is our upcoming point of care/at-home diagnostic platform," continued Egan. "We are optimistic about the potential impact this new device can have on infectious disease diagnostics, not just for COVID-19 but other diseases as well, and believe we are well positioned to maintain our trajectory of market share growth as our investments in talent and R&D continue to yield positive results."
Third Quarter 2021 Business Highlights:
- Unveiled at-home/point-of-care testing device at AACC annual meeting.
- Initiated corporate rebranding to better reflect expanded scope, mission, and upcoming expansion into new diagnostics verticals.
- JV CoSara received clearance from Indian FDA-equivalent for chikungunya and dengue tests.
- Received approval to sell the Logix Smart ABC test in Mexico.
- Received ANVISA approval to sell Logix Smart COVID-19 test kit in Brazil.
- Strengthened the intellectual property portfolio with new international CoPrimer™ patent.
Full Year 2021 Outlook:
Co-Diagnostics is offering the following guidance for its full year of 2021:
- Revenue to be in the range of $96.0 million to $100.0 million
- Diluted earnings per share forecasted to be in the $1.07 to $1.16 range, with shares outstanding expected to be approximately 30 million and a corporate effective tax rate of approximately 18.0%.
Conference Call and Webcast
Co-Diagnostics will host a conference call and webcast at 4:30 p.m. EDT today to discuss its financial results with analysts and institutional investors. The conference call and webcast will be available via:
Webcast: ir.codiagnostics.com on the Events & Webcasts page
Conference Call: 877-317-6789 (domestic) or 412-317-6789 (international)
The call will be recorded and later made available on the Company's website: https://codiagnostics.com.
About Co-Diagnostics, Inc.:
Co-Diagnostics, Inc., a Utah corporation, is a molecular diagnostics company that develops, manufactures and markets a state-of-the-art diagnostics technology. The Company's technology is utilized for tests that are designed using the detection and/or analysis of nucleic acid molecules (DNA or RNA). The Company also uses its proprietary technology to design specific tests to locate genetic markers for use in industries other than infectious disease and license the use of those tests to specific customers.
This press release contains forward-looking statements. Forward-looking statements can be identified by words such as "believes," "expects," "estimates," "intends," "may," "plans," "will" and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made and predictions as to future facts and conditions. Forward-looking statements in this release include statements regarding the (i) use of funding proceeds, (ii) expansion of product distribution, (iii) use of the Company's tests by laboratories, (iv) capital resources and runway needed to advance the Company's products and markets, (v) increased sales in the near-term, (vi) flexibility in managing the Company's balance sheet, (vii) anticipation of business expansion, and (viii) benefits in research and worldwide accessibility of the CoPrimer technology and its cost-saving and scientific advantages. Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances. Actual results may differ materially from those contemplated or anticipated by such forward-looking statements. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statement relating to matters discussed in this press release, except as may be required by applicable securities laws.
CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Marketable investment securities
Accounts receivable, net
Total current assets
Property and equipment, net
Investment in joint venture
Deferred tax asset
Liabilities and stockholders' equity
Accrued expenses, current
Accrued expenses (related party), current
Income taxes payable
Total current liabilities
Accrued expenses, noncurrent
Accrued expenses (related party), noncurrent
Total long-term liabilities
Commitments and contingencies (Note 9)
Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020
Common stock, $0.001 par value; 100,000,000 shares authorized; 28,894,890 and 28,558,033 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
Additional paid-in capital
Total stockholders' equity
Total liabilities and stockholders' equity
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
Nine Months Ended
Cost of revenue
Sales and marketing
General and administrative
Research and development
Depreciation and amortization
Total operating expenses
Income from operations
Other income (expense)
Gain (loss) on equity method investment in joint venture
Total other income (expense)
Income before income taxes
Income tax provision (benefit)
Earnings per common share:
Weighted average shares outstanding: