Of those top customers [Audio gap] were new. These forward-looking statements represent management's estimates based on current views and assumptions, which may prove to be incorrect. So we think we can play a dominant role in the testing. This rate releases our valuation allowance on our deferred-tax assets and incorporates our projected annual tax rate for the year. Fulgent Houston will soon serve as a fully operational second site. As a result, matters discussed in any forward-looking statements are subject to risks, uncertainties, and changes in circumstances that may cause actual results to differ from those described in the forward-looking statements. We had $90 million of accounts receivable. The COVID-19 pandemic has continued to challenge both our health and our way of life this year. At the same time, our clients are confident using Fulgent [Audio gap] volume. Thank you for taking my questions. Please see the company's press release discussing its financial results for the third quarter of 2020 for more information, including the description of how the company calculates non-GAAP earnings and earnings per share and a reconciliation of these financial measures to income and income per share, the most directly comparable GAAP financial metrics. Both new and existing clients are increasingly taking advantage of our expanded product portfolio, which now includes almost 19,000 tests. 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. At the same time, we are taking market share from other people. With that, I'll [Audio gap] call over to Brandon to dig into more about the customer dynamics we are seeing in this quarter and elaborate on the long-term drive for our momentum. Thanks very much. Third, our capacity. Who knows? In addition to the agreements we announced, there were a few other public announcements from our clients describing their partnerships with Fulgent. Is it carrier? This week, we had the pleasure of joining Osmosis on their #RaiseTheLine podcast to discuss the latest developments. We think it's going to stretch well into 2021. Great. During Q3, we had an equity shelf program in place, which enabled us to sell approximately 1.3 million shares in the open market, raising $42.3 million in cash. You've always obviously been very nimble here with the COVID response, which has been impressive. The Latest News and Updates in fulgent genetics brought to you by the team at KTLA: Testing is expected to begin January 2021 and will continue for at least 18 months. I think the Fulgent Genetics when we get in [Audio gap] we are not highest, the provider. And then from an operational sense, we can quickly deviate the resources into other areas that we believe will be fruitful for the company. 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. Definitely, we see the business opportunities. Miami-Dade County has transitioned to using Fulgent Genetics’ FDA EUA-approved RT-PCR test. We've continued to bring on new customers. Overall, I'm very pleased with the execution of our sales team in the quarter as we consistently won in competitive opportunities. And then on the reimbursement front, obviously, we had favorable reimbursement for COVID testing and CMS has extended that through late January. As I mentioned, the COVID-19 is not going to be -- goes away completely. Especially for the people who get the vaccine, all patients recovered from COVID-19. Hi. And then a little more forward-thinking. That's a fact. But because of the additional capabilities that we made in terms of reimbursement, the great traction that we've seen in reimbursement because we've signed on so many more core customers and we've proven ourselves for the capabilities and the efficiencies that we've had in the lab, we've seen a tremendous uptick in our core business in the back half of this year. This has really been important for patient care and contact tracing and has been a huge differentiator for Fulgent. As you recall, all our lab management system and software has developed in-house. Before we get into our COVID-19 business, I would first like to highlight the strong quarter we had in our core genetic testing business. Employer Identification No.) Displayed here are Job Ads that match your query. So some are exclusive, some are not. And the results we delivered today will continue to enhance our position in this area because of our technology, because of our biochemistry, and because of our pipelines. We had a low in the springtime of the year, but we came back roaring in the back half of the year. The symptoms of respiratory infections, including COVID-19, are very similar and it can be difficult to differentiate the best treatment plan. And we have seen our commercial initiatives at home test offering, Picture Genetics. 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. Great. Fulgent Genetics, FLGT; Department: Clinical Diagnostics Lab; 4978 Santa Anita Ave., Suite 205; Temple City, California, United States 91780; Phone: 626-350-0537 The third area I wanted to highlight as an avenue of durable growth is our consumer offering Picture Genetics. Miami-Dade joins a long list of counties to use Fulgent’s Community Testing Platform including, but not limited to Santa Clara County, San Bernardino County, Los Angeles County, City of Long Beach and Orange County. Thank you. I would like to now turn the call over to Paul Kim, who will walk you through our third-quarter financial performance. And actually, I got a text that I cut out a little bit. With a powerful leverage in our model, this translates into GAAP net income, and excluding stock-based compensation, we expect non-GAAP net income of approximately $100 million or approximately $4 per share for our shareholders in 2020. Operator, now, you can open it up for questions. Regarding turnaround time, it's been widely publicized that labs have struggled with turnaround time and patients have experienced delays receiving test results. To that end, during the third quarter, we engaged with one of the largest biotech companies in the United States in a competitive bid for their employee testing. Initially, some labs were taking five to seven days and sometimes longer to return results to patients. Stock Advisor launched in February of 2002. Most of all, we're seeing our customers appreciating the clear differentiation by the application of our technology platform. 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. 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. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. 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. The company's press release discussing its financial results is available in the Investor Relations section of the company's website, fulgentgenetics.com. I guess sort of tactically speaking, a couple of weeks ago, we did launch a pharmacogenomics test, which we're pretty excited about. 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. And then we have added a number of people to the organization, but not all of them are employees. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Well, Kevin, if we throw away $100 million, we can easily buy a $20 million or $30 million business. Fulgent Genetics, Inc. (NASDAQ:FLGT) Q3 2020 Earnings Conference Call November 9, 2020 4:20 PM ET Company Participants Nicole Borsje - Head, IR Ming Hsieh - … And Brandon can give you some of the details. 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. We're not going away anywhere, and we believe we can compete in any kind of environment. And before COVID hit, we guided the street to $40 million of business for the year. And looking out into Q4, we anticipate that our volume for the core business could be approximately 25,000, with revenues being in the low teens. RT-PCR provides the highest level of sensitivity and specificity. I mean, now, the test menu is over 19,000 tests. I think as Paul mentioned, we do have some additional leverage in our COGS there. Fulgent will continually invest in these areas. Due to the COVID-19, I think it slowed down a little bit our introduction in this kind of products. The Company offers genetic testing to provide physicians with clinically actionable diagnostic information to improve quality of patient care. We were able to launch this high capacity lab in record time by building on top of our foundational Fulgent technology. We provide the low-cost competitive bid in all our efforts. 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. Fulgent Genetics’ proprietary technology platform has created a broad, flexible test menu and the ability to continually expand and improve its proprietary genetic reference library while maintaining accessible pricing, high accuracy and competitive turnaround times. Our original offering consists of three tests: carrier screening, newborn screening, and adult wellness. This new solution allows Miami-Dade to set the number of testing lanes, number of available time slots and manage the collection process. But with our technology, our capture set, our pipelines, we were able to develop that pretty quickly. COGS per test for the quarter was $25, an improvement of approximately 42% compared to the second quarter. One other point of differentiation on our COVID-19 test offering, which we announced in September, is that we will give our clients an option to add influenza A and B. This translated to approximately $2.6 million charge below operating expenses. Switching to our COVID-19 business. As we stated repeatedly on previous earnings calls, the cornerstone of our business is our technology and its flag role platform, which will allow us to develop, validate, customize, and launch our products and services. For years, we described ourselves as a technology company providing clinical genetic testing, and we have continually emphasized the power of our technology platform. So a lot of these contracts are laboratory services agreements. [Audio gap] the third quarter was $104 million in cash, cash equivalents, with no debt. Market data powered by FactSet and Web Financial Group. We look forward to keeping in touch with you in the days and weeks ahead. Thanks, Brandon. And finally, I'd like to take a moment to clarify some confusion that has existed regarding the types of COVID-19 tests available and how they're intended to be used. Great. The Blueshirt Group With that, I'd now like to turn the call over to Ming. Founded in 2011, Fulgent began with two simple ideas; flexibility and affordability. Meaning that our COGS per test during Q3 on a full GAAP basis was $25. Fulgent Genetics, Inc. Common Stock (NASDAQ:FLGT)Q3 2020 Earnings CallNov 09, 2020, 4:30 p.m. You feel comfortable kind of at that $40 million reported revenue for genetic testing for the year. In addition, as the vaccine developments will come in, adding additional requirement for the test, faster and cheaper and quicker and more accurate test for the antibody test, neutralizes those antigen test. The traction we have [Audio gap] insurance provider on reimbursement. While we projected a slight decline in our core business due to the pandemic, it has rebounded much faster than we thought and grew 57% sequentially from a revenue standpoint. The Houston lab [Audio gap] away from the Texas Medical Center, the largest medical center in the world. And I'll turn it over to Ming, who can give commentaries on the vaccine. And, Rachel, Brandon. Can you just give us some more details on some of the contract terms that you guys have won? Getting EUA for our standard physician-administered RT-PCR test was critical as it served as a validation and stamp of approval for our quality. Our investment in terms of capacity, it is always the multiple-use. 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. In addition to the huge drive-through operation wins, we announced our partnership with New York City Health and Hospital and their Test & Trace program for K-through-12 testing, both on-site and at home. When it comes to contact tracing, the turnaround time needs to be 24 hours or less for this test to be as powerful as possible. So we think it's going to be around with us for a while. These include huge hospital systems, some of the largest specialty care clinics, government agencies, large companies, etc. We will introduce the products in this area. Nicole Borsje -- Head of Investor Relations. This program went live in October and we are now collecting thousands of samples per week throughout New York City. We believe Picture is now a well-known and rapidly growing brand that will continue to deliver for us going forward as we expand the number of tests being offered on the platform. 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. Can you walk us through what you guys are thinking about for testing demand over the next year or two with an effective vaccine on the market following that news we saw this morning? Fulgent has significantly expanded our coronavirus testing services over the past several months. In addition to those, there are approximately 500 million non-influenza respiratory infections occurring annually. I'm excited to announce today we have won the opportunity. New at Fulgent Fulgent Supports At-Home COVID-19 Testing through Picture Genetics Picture Genetics, an at-home genetic testing service powered by Fulgent, will soon offer at-home COVID-19 tests with FDA Emergency Use Authorization. Our second EUA was for our Picture at-home test, which has been instrumental for our growth. So what that tells us is, if we continue on with the momentum and our capabilities as a company, our outlook for our core business in 2021 should be very, very favorable. How Did Fulgent Genetics Stock Perform in 2020? The company’s reports filed with the U.S. Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 13, 2020 and the other reports it files from time to time, including subsequently filed quarterly and current reports, are made available on the company’s website upon their filing with the SEC. We don't have that crystal ball, no one does, right? It is quite common for families to have to wait many weeks, even months to see a pediatric genetic specialist, and usually, the first step is to order a genetic test. Fulgent’s reporting solution will then deliver reports directly to patients’ mobile phones. 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. Returns as of 12/15/2020. 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