Fulgent Genetics, Inc. reported a decline in revenue and increased operating losses for the third quarter and first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, revenue was $71.7 million, a decrease of 15% from $84.7 million in the prior year. For the nine months, revenue totaled $207.3 million, down 5% from $218.7 million. The decline was attributed to a significant drop in COVID-19 testing revenue, which fell to zero from $18.9 million in the same quarter of 2023. However, revenue from precision diagnostics increased by 19% to $43.6 million.
Gross profit for the third quarter was $26.8 million, down 33% from $39.8 million, resulting in a gross margin of 37%, compared to 47% in the previous year. Operating expenses rose to $43.9 million for the quarter, up from $39.6 million, leading to an operating loss of $17.1 million, a stark contrast to the operating income of $0.2 million reported in Q3 2023. For the nine months, the operating loss increased to $57.8 million from $44.4 million in 2023.
Net loss attributable to Fulgent for the third quarter was $14.6 million, compared to $13.1 million in the same period last year. The nine-month net loss improved slightly to $36.8 million from $39.7 million. The company reported a basic loss per share of $0.48 for the third quarter, compared to $0.44 in 2023.
Fulgent's cash and cash equivalents decreased to $58.0 million as of September 30, 2024, from $97.5 million at the end of 2023. Marketable securities also saw a significant decline, dropping to $155.0 million from $326.7 million. Total current assets were reported at $326.5 million, down from $507.8 million at year-end 2023.
Strategically, Fulgent has been active in managing its investments, including a $10.1 million impairment of available-for-sale debt securities. The company also reported a net gain on available-for-sale debt securities of $9.5 million for the third quarter. Additionally, Fulgent has maintained a stock repurchase program, with approximately $150.5 million remaining available for future repurchases as of September 30, 2024.
The company continues to face legal challenges, including a Civil Investigative Demand from the U.S. Department of Justice related to allegations of unnecessary laboratory testing and improper billing, alongside an ongoing SEC investigation.
About Fulgent Genetics, Inc.
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