Co-Diagnostics (NASDAQ:CODX) Inc posted second-quarter results that saw pre-tax income of $11.9 million and year-over-year revenue gains driven by sales of the company’s Logix Smart COVID-19 Test.
For the period ended June 30, 2021, the Salt Lake City, Utah-based molecular diagnostics company reported revenue of $27.4 million, up 13.8% from the second quarter in 2020.
The company’s gross profit for its 2Q increased 37.6% to $24.9 million, representing 90.8% of consolidated revenue due to “reduced production costs and improved product mix.”
READ: Co-Diagnostics strengthens IP portfolio with South Korean patent award for its CoPrimer technology
Co-Diagnostics (NASDAQ:CODX) reported net income of $9.8 million, or $0.33 per fully diluted share for the 2Q, compared to net income of $15 million, or $0.51 per fully diluted share in the same period in 2020.
The firm posted income before taxes of $11.9 million.
Co-Diagnostics had cash, equivalents, and marketable securities totaling $72.4 million as of June 30, 2021, an increase of $12.3 million from March 31, 2021.
“We are proud to continue the momentum, delivering another strong quarter following our record results in 2020,” Co-Diagnostics CEO Dwight Egan said in an earnings statement. “Our team has done an excellent job of cultivating distributor relationships throughout the US and abroad, which is evident in the record sales results this quarter.”
Egan noted that as new variants of coronavirus (COVID-19) affect the world, the company remains “steadfast” in its mission to deliver “high-quality diagnostic testing kits to customers throughout the world.”
“Looking to the back half of 2021, we are well positioned to maintain our trajectory of growth as our significant investments in talent and R&D continue to yield positive results,” said Egan.
“Our Eikon technology platform has experienced breakthrough technological advancements, including our direct saliva extraction-free PCR protocol, and a groundbreaking instrument designed to be inexpensive, easy to use, and to deliver rapid results while maintaining the superior performance of PCR. The result is a low-cost, small-footprint PCR device that we anticipate could be deployed widely in nearly every setting.”
Egan said the company has “strong cash reserves with no debt,” and despite the substantial R&D investment and impact on EPS, “the Eikon platform is the surest way for the company to position itself for growth.”
Third quarter outlook
Co-Diagnostics said it expects revenue to be in the range of $23 million to $25 million in 3Q 2021. It will also have increased development expenses for the Eikon point-of-care technology platform.
“Diluted earnings per share forecasted to be in the $0.19 to $0.22 range, with shares outstanding expected to be approximately 30 million and a corporate effective tax rate of approximately 19%,” said the company.
There have been over 20 million tests sold to-date, said the company.
Significantly, CoSara Diagnostics was recognized for combating the “COVID-19 surge in India” and working to ramp up manufacturing of COVID-19 tests in response to the deadly wave of infections.
CoSara has the exclusive manufacturing rights in India for the complete menu of Co-Diagnostics infectious disease molecular diagnostics kits, engineered using Co-Diagnostics’ patented CoPrimer technology.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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