Co-Diagnostics turns 1Q net profit of nearly $8M on strong sales of its Logix Smart COVID-19 Test

Co-Diagnostics Inc (NASDAQ:CODX) reported that it earned a first-quarter net profit — versus a loss last year – on strong sales of its Logix Smart COVID-19 Test.

For the quarter ended March 31, the company said income before taxes was $9.9 million as it generated revenue of $20 million. Net income was $7.9 million, compared to a net loss of $1.1 million in the prior-year quarter.

And gross profit increased to $16.8 million, representing 83.7% of consolidated revenue due to improved product mix as compared to the prior-year period. Operating income improved to $10.3 million, versus an operating loss in the year-ago 2020 quarter.

READ: Co-Diagnostics says its CoSara joint venture in India garnering media attention as it combats coronavirus surge

In addition, the company said it closed the quarter with cash, cash equivalents, and marketable securities of $60.1 million, an increase of $12.8 million from December 31, 2020.

Looking to the second quarter, Co-Diagnostics gave revenue guidance in the range of $20 million to $22 million. 

Diluted earnings per share also are forecasted to be in the $0.19 to $0.23 range, which includes enhanced R&D spending related to the company’s new molecular diagnostics platform, with shares outstanding expected to be about 30 million and a corporate effective tax rate of about 21%

“We are proud to deliver another strong quarter following our record results across 2020,” said CEO Dwight Egan in a statement. “We continue to see great progress in the development of our new rapid PCR diagnostic testing and are incredibly thankful to our customers, partners, and employees for their efforts toward combatting COVID-19 and other infectious diseases. We remain well positioned to provide timely, affordable, and high-quality molecular diagnostics solutions to countries around the globe and especially to those with increasing needs and surging crises.”

Egan added: “Looking forward, we continue to anticipate demand for our product portfolio amid strong market conditions. As such, we have maintained solid revenues, earnings, and free cash flow to start the year and are excited to accelerate investments in talent and the breadth of our portfolio to create increased capacity and deliver sustained value to our customers and shareholders.”

Year-to-date 2021 business highlights include:

• Continued development of previously announced new rapid PCR point-of-care and at-home diagnostic testing, screening, and surveillance platform, which utilizes its proprietary CoPrimer technology, direct saliva, and nasal swab extraction-free protocols, for COVID-19 and other infectious disease testing.

• The company believes its direct saliva technology has the potential to greatly improve COVID-19 testing throughput while delivering lower processing costs and increased accessibility of gold-standard PCR diagnostics worldwide with applications for “Workflow of Life” locations, including businesses, schools, and home settings.

• Announced its partner Clinical Reference Lab, which received a US Food and Drug Administration EUA for its Rapid Response COVID-19 saliva test that uses Co-Diagnostics CoPrimer technology, is now available through Walgreens Find Care, allowing consumers a convenient, non-invasive option for PCR-based testing from their own homes.

• Shipped an emergency supply of raw test materials to its Indian joint venture, CoSara Diagnostics, to help combat the surge of cases in India, which comes as the company marks the two-year anniversary of the inauguration of its CoSara manufacturing facility. CoSara has received significant recognition across India and its media for these efforts.

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Story by ProactiveInvestors