Luminex (LMNX) 9 Feb 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to Luminex Corporation's Year End 2020 Earnings Conference Call. My name is Carmen, and I will be your coordinator for today. Today’s call is being recorded. At this time, all participants are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. Instructions]. [Operator like President call for and now Currie, to opening turn Vice Senior Chief to will over the Harriss remarks. I Financial Officer, proceed. Please

afternoon me us. our for thank President is Chairman, Homi Shamir, Good With CEO. and and you today joining

take our questions. Following your we'll comments,

financial available plans today's section be of during site. forward-looking statements six the As our statements maybe replay are within a be Section control date adversely are the known Reform by Regulation of XXE recorded purely the be cause statements. Securities we to the no actual Factors and with of forward-looking our XX December or of the are Homi Also, on differences a the will non-GAAP be measures historical made in statements. Exchange GAAP are by Securities based as call the financial in that the of which earnings call. on Commission. unknown subject this Web conference or beyond a Act reminder, Form the of our months are to XX-Q course to Private included directly cause in being most differ to the our Shamir. of forward-looking the presentation which these the protections G update reconciliation covered We extent and obligation today's or filed Chairman, forward-looking only President on Web To risks is in comparable certain year to call the is hereof documents G. to speak may uncertainties, release, you CEO, consequently and meaning financial ended these over and will such may call the could measure not Act SEC undertake encourage Exchange review for Relations expectations any that and site XX-K of those non-GAAP measures Investor and quarterly company and for some could provided contribute statements current and defined Securities detailed Litigation XXXX, anticipated These for and that to Certain in claims covered, our our our materially now turn beliefs as Form company's accordance and the Regulation on with statements. available I'll and such and results from reports and

for a posting and you revenue Thank quarter and on We year, the up XX% XXXX. of over fourth XXXX XXX ended the million record strong note million full for welcome. XXX

Additionally, we than improved XXX the year our XX more million. our in highest and with EBITDA balance more level profitability XX million of cash from posting operation, in generating cash to million approximately ending a ever, than

had a tailwinds strong three solid pressure the addressing and life had only the significantly set With on revenue role our developed while growth are During fourth we foundation that year XXXX, the for more we growth, also important nicely during revenues products for our continued the to there science contributed assays in pandemic, we an and initial our not third played coming. MDx R&D in efforts, important and they focused recovered exciting quarters. very

a We manufacturing XMP fourfold capacity, our in also manufacturing significantly capacity. capabilities our with a manufacturing increase expanded nine-fold increase ARIES in

of our facilities also growth. accommodate are We investing expansion to future in additional

of both the product further over we’ll then position. even new support our several become we the cash and diversified an market. This our our ARIES with manufacturing planned to XX% will more growing and growth new have year, and As company products expand capacity also in increase come to we help expected enter new profitability rapidly expectation

marketplace. Fortunately, well for us positioned diversified model post-COVID the has our

term. long tailwinds COVID that believe we However, be for the will us with

of and normal important the although of under back in testing expect number three labs, flow laboratories grown more we at consider our the growth MDx they to total growth, factor When approximately then as year, to slows, [indiscernible] should to return we execution research for need continue placed be and to who absolute COVID agreement systems and we partner committed more some had MDx labs and test that rental slows future continues. ensure the to is well financials that, on our institutions, revenue turn we a reagent activity. over our both range. our of for our the volume Also, we will positioned to provides to in typically I and the from capacity. ultimately typically to customer volume stream success Overall, our end five we Harriss the comments. One more years. customers, near the would and consistently focus are XXX earned it that are like agreement on excited this open with up, With reference the of testing At over for to testing continue next customers. hear term, we Specifically, growth academic the pharma a as see about final be

Thanks, Homi.

fourth operating of with Homi revenue with is of the XXX.X revenue. operating over X% XXXX in at XX% closed we profit quarter to quarter fourth million year mentioned, profits of XXXX. and As record up the strong the revenue Consolidated

year, million the year the portfolio significantly to of For diagnostics growth consolidated our compared of to full up Significant with contributed XX% revenue. was those profit operating prior as molecular XX% revenue XXX.X results. at to

up million or X% XXXX, million of the Looking to or line quarter full revenue year while XX.X million at XX% X.X over XXXX. to our compared grew X million was items, XX.X revenue system by fourth the to

was our For up although over system some have movement significant modestly revenue the XXXX, respective we streams. year, did system revenue within

system by was the flow revenues molecular Those systems the system for to our available by and by testing. from had the fully use modestly assays same placements were we to offset customers the system desiring for of year-over-year our our reason. before, mentioned and success pandemic increases resulting down our down significantly X% were address we diagnostic pandemic through in year. were As impacted And the revenue effects partners

During XXX over was including respectively. molecular decline placements. up for the to to of XX.X sample-to-answer purchases from quarter, systems, X% down year. primarily multiplexing for systems partners. was the XXXX up the non-bulk but the end partners and with for mainly up year. million the a revenue reductions sales XXX the and most our by was user the we XX the the expected due and quarter and XXX% million result increase attributable XXXX, than diagnostic nearly XX% reported for in X% and the over placed for Royalty not for quarter lower Consumable revenue year, systems, year, million was we in higher ARIES XX.X for of year back VERIGENE full to quarter half This million This of as and place year, XX.X COVID the X% the taking pandemic, placed

million, to royalty respective the and XX% Total for revenue with XX% royalty total that shortfalls and end reminder, we assay year will self-reported businesses At quarter royalties, base for findings, anticipate and continue XXX.X in the a revenue partners adjustments. a audit coupled of recovery the and respectively. their accrual up includes grow XXXX. XX.X was throughout to were revenue million our As indicating XXXX,

revenue, and assay molecular comprised both our total approximately assays from sales stream. contributions flow with revenue within asset XX% of assay our minor revenue diagnostic Our research

million in year other approximately for Homi mentioned was was is projects all development related million up COVID quarter BARDA and the full to X points prior the driver fourth X.X year. year scale full service respiratory XX% respectively, and resulting XXXX. X% XX%, and primary compared and more the revenue in funding up margin two And the year all under a XXXX expansion. diagnostic the molecular was combined Gross the year up million And the in revenue XX% full Included of quarter from to XXX% full comprised XXXX Our and was and XX% of also for in earlier. XX% X.X for to XXXX. than having the to million. percentage The the Luminex revenue our of a X full was products and the up for assay over quarter XX% revenue year realized margin assay for compared manufacturing to and total function XX% for related diagnostic year, the full to XX% quarter and year XX% and the sales pandemic. and XX.X quarter instruments molecular the sample-to-answer of expanded up XXXX over respectively, to fourth fourth by to the more field agreements. Non-automated the XX%, the and from million, and respectively, in scaled and quarter year this economies other quarter finally, XX% Service was for up X.X revenue compared and XX.X

improvement profit year. we gross the of million XX.X and in calls, tax loss distribution the from as subsidiaries year. in direct expenses modestly our the As significantly higher million; by as full was prior and for profit, sales in full in revenue marketing for increases profit quarter expenses year. for result X% across quarter and full the quarter the mix, a which X.X sequential expansion in gross grew quarters. grew primarily a year and indicated contributed of both our in Strong margins the margins the million growth and the Operating The and operating quarter and These XX% sales, to up and for million year. XX.X can the changes quarter year previous function a previous were effective year of XX% for in our significant X% resulting as revenue affected Operating full fluctuate by million. worldwide XX% to XXX.X over our rate the growth experienced to growth XX.X percentage fourth million the XX% which for for our of were quarter and by XX.X driven

For our the tax XXXX, full XX.X%. was rate effective year

in result quarter This of the U.S. about at earnings full foreign that year fourth Cash half mix reflects the amount. of in in a changes taxes jurisdictions. rate. of adjustments expense income and tax our to are arrive Our rate was

second strong payment reflects of million cash XXX.X issuance Our and proceeds the finally, in cash dividends year, of XXXX. the million net XX.X for from in XXXX, of some the of nearly of XX debt This balance operations sheet investments. XX million. million cash from additional and convertible the CapEx while of absorbing purchases almost remains and approximately XXX in also quarter with of generation flow visibility million And

longer of the away more forward from As lingering quarter emerging, continuation the volumes surrounding of result revenues we until short-term the new a COVID to of we those becomes for and revenue various amount guidance for pandemic more COVID of the anticipate streams year short-term full to effects lasting pull term, around uncertainty strains the of and We sometime the resulting our forward decided respective our a from return the testing, remain of predictable. have projections issues that certainty absolute soon. quarter the on guidance effects in confident will and

the be to year a year, we another minimum XX% XXXX We full growth Luminex. to million expect anticipate revenue. least currently strong in of For XXX however, for at

to before, we As of will million tests the here. expansion of a capacity around be mentioned completion year per primary the enabler X our ARIES

molecular result, in the will standpoint item assay XX%, be for which products. primary most line of revenue of a excess will As driver be growth diagnostic

in systems or range FDA and of and I launches, margins some of key by are of in the for reduction XX%, comments. the are recovery, to royalty expect the at With also extremely with Homi operating our in deliver we profitability for revenues to We with that, mentioned expenses. offset on placed. consumables return year going-forward also it cash those anticipate control molecular to ability growth result systems product remain basis. including approval from of over Obviously, EUA continued to a both be increased turn XX% But to the a execute and like new confident a flow. partner final to success. the earlier, recovery diagnostic XXXX our Gross in I'd as number should requiring absolute result partner around we line As

to Harriss. pandemic. we safety our we have Thanks, year our fight employee anticipate time, the no Luminex delivering to for and this was is ever performed effort And XXXX outstanding we their to experienced. global pandemic year same a the product a families and of are will major our utmost grateful we But us. The like employees as must as role dedicated other important XXXX, the this we at well. play to customer. continue begin to that continue

this exciting growth our us coupled the as well that confident launch will of projection pandemic and fight best the cash as flow with year, are products in improved our XX% We COVID help several and and of profitability portfolio. new expanding

time we We are of COVID-XX, it. address to to continue get forward can the with we'll impact help we this then looking that until past challenges but the when to pandemic do everything brings

healthy safe. be that, operator would With to turn all and it over your for the to Let's like I questions.

before questions, would back like the Homi Thank I we turn additional the for you. call line comments. But to for open some to

to give wanted update FDA. I Finally, quick on a real-time the

shortly. are as to we active COVID We With point VERIGENE done afternoon to deliverable the SARS agency time, such review are puzzling in care the at the of complete I we test. the that make NxTAG will panel, and a that the letter of they believe track continue committed on and prioritizing status two a COVID-XX letter for this review on all respect warning pending the good and and EUAs, they think progress Thursday almost for to submission increase our VERIGENE home was declining the ahead RPP schedule are and effect, more the accessibility tests we agency. testing last this of received very COVID to explaining to is are plus EUA have approval the because Concerning

accessibility. this option successful when will will reviewing point, the rapidly in to decision it whether requested reversing challenge we they it, this cannot we at be hundreds this decision. we of are believe getting this say be the in We of hands since product customer Still, increased

the still you. Operator, we additional are during this questions. FDA let's planning However, to to quarter. EUAs submit Thank the get

you. [Operator Thank Instructions].

Sung comes Our first question from with Ji Nam BTIG.

Your question please.

VERIGENE the review you VERIGENE rejecting taking FDA just to I'm questions. clarify for I? what the me happened sorry, process? the Could the I Thanks help Hi. II, guess

Yes, I. it’s VERIGENE

both I and They're or VERIGENE Sorry. reviewing not II?

COVID-XX with a I standalone -- have as full next add hospitality two -- said, and next COVID-XX moment, EUAs and we to agency, COVID-XX have the step to the At the for step review where we the I. COVID-XX next the VERIGENE to the

because hospitals obviously submitted it they with this VERIGENE the the not that VERIGENE department on FDA for submitted to are on together to it’s COVID-XX adding the be of were an scheduled priority a Thursday II VERIGENE that the think received and the COVID-XX needs active we I We for which due VERIGENE of have We is declining close I I are later VERIGENE a assay ARIES other XXX We testing. quarter. using to yet nation is during stated major in [indiscernible] all from in not letter substantial and on across and correct them. different review customers I a instrument them

As a requesting matter us fact, so. of to they do are

to in decision. be that all hopefully a by hoping upfront letter surprise. took us FDA to they reverse will I'm So their happening. will we write It we what the wanted and is But

I hold? terms of updates any then the And Is on IVD guess in putting assays FDA related? still it. things got respiratory Okay, in non

on is hold. Everything

when visibility they Any again? those start of Okay. terms reviewing might in

we’ll idea. pandemic, we approval, until My No cetera. probably is feeling do in EUA see et that a it slowdown

So it’s for be while. going to a

from Okay. broader just this year. going? to hear the you kind a latest And commercial is that kind feedback then targeting would are launch how of lastly of guys on launch I me INTELLIFLEX, think love

partners about comment, we are base product as upgrade have major installed looking launch anymore we And and they're about training that in – a partners the major But have to to provide product. the are to excited comment don't it. it. initial that the our Two from force it. all large all ready of now. I them Actually life behind sales science their

Great. so much. Thank you

Thank you.

you. Thank

Piper Steven Mah with is Next Sandler.

please. question Your

Harriss. Thanks, FDA. follow-up Homi Great. on a and just question Maybe

VERIGENE other So did they but any because give of point you color care prioritizing said why, you said not they're I.

does focusing they're the that that then lateral So flow? mean at-home on

care a and the to they That's letter In point us. said Yes. test. that prioritizing they of tests accessibility say such testing increase they will at what home are

surprise. go all was I and But took took don't surprise So that all us beyond us want by that it by that. to

reviewer not the different come said, did that from agency. even of from I was this reviewing completely As part came our that

is installed approach big So with we and very it. there base talk a will who them them, needed because

mistake. So human can also sometimes make they

maybe your couple Okay, a then questions great. And just guidance. on of

COVID-XX So have in peaked be not you to yet. mentioned COVID-XX very customer testing strong the a demand, so we going belief in of is terms there just seems that more next amongst the and people to term. And be yet near lot

So that plus take to guidance administration given being What increase Biden it are reiterate you guidance? year-end for and just increase likely conservative? COVID-XX national then or would will -- stance the would Why given the testing. you new you the

conservative first gave year. we were okay. a would we guidance Well, full by in what QX, And for this like little in if to bit you concerned time, happened initially be the we look the that

X X what's beat reducing going. and we are It's very stage predict happening to where We’re odd at and million try this to we that million. in

a of know, exist. for minimum, this Just not testing example, almost we argument, very matter all line on is flu

cetera. go MDS On are end, that’s order go mainly, I'm life system, talking the we installed I not other coming travel to in the institutions some closed, life are to science, need recognize customer -- if closed, countries countries some science, to revenue about in and system et

agency, of you We receive the okay. happening, I to we if don't were we FDA. issue in this from got know to hoping review. were really I any even So suddenly the letter out VERIGENE to the blue, use have from day. And And the active almost flexibility what's day day with it the

XXX, next et everybody weeks feeling next both provide Yes, or to behind are trying we conservative it very be it's confident to guidance, the Because want two into we reduced we what we and repeat don't we happened we will QX or happened what in but be month So are lead and is that our it not beat bound predict substantially. that very control. all we when rather cetera. the we on what but saying we’ll can to then

year Yes, we for makes okay, can the you that the that primary sense, into from COVID And guidance is contribution baked testing, the assume provided that's Homi. I --? VERIGENE or

was there VERIGENE because -- it. so forget we contribution on For the zero. build is don't most COVID-XX I sure But far, the there, for again, the

Okay.

guidance. But said, raise happen we the up think I have to ARIES ARIES end, and something the to of So into there provide every as I XXXX, believe should the will the it in lot that the we happened the second first ramp in a XX% the similar we of happening assumed like it half guidance, remember part a I we the have on not, and in in the either although in happening again, happen guidance. XX% in or other deliver or year. the enough probably production space the guidance, the year that of thing revenue -- of the Concerning to also guidance guidance the incorporate guidance

same So the or we’re year. same be this trend story it the will feeling

got you then in outbreaks? that maybe How bake science some than And optimal, like given especially full lockdown, were vaccine back conservatism your rollout similarly it. about that, guidance are research does business, given there have seems Okay, more in example, it be life guys then guidance, my in less to thinking some for January? California revenue does on last tools question, on and year

Yes.

different landscape. to businesses I in my of the life was about way and both it, a that moderate is think size in within life comments science recovery is you partnership variety of the span the science So business, guidance a verticals our I into what said flow we have built believe Steven, of the

expecting some we're So recovery.

the are to learning to with be might places there vaccine People in it. working are expect. not as new is they Although strains, well as purported actually live

You're see beginning to traffic again.

You're beginning people to out. more see

there. bake but facilities and our will those growth learn install they ARIES gets After into could not in they that. certainly says some believe the That that, things they but variety see to XX% that coupled expansion on we there's don't be with we be as businesses, utilized a in manufacturing will so growth modest visibility systems, significantly we significant of upside, want growth, about and of the with right, us Homi that come to XXX. flow it, maybe those in think to life And both as us in partnerships allow when will sciences we their until to get you happen, recover, live better

Okay, got it.

baked you've of conservatism. in Okay, bit so it sounds a like quite

it. I Okay. Thank All you. right. Appreciate

Thank you.

we Couillard with have Jefferies. Next Brandon

question Your please.

Good that in as that such the in Thanks. now, Harriss, effective in effective expanded the revs or new is from the up capacity sample-to-answer quarter? ARIES afternoon. Homi should capacity first first be place sequentially quarter

Yes.

the hiccup et up see you are than as increase ramping But and every increase further there. QX more substantial substantial you and a year will like we get quarter but biggest increase. really, year last this QX sure start to you when yes, it's and it seeing increase you Obviously, some happening. up QX see We a will we QX for compared already speak. But this during we QX cetera, ramp have in small a get

to mix color kind through And in sort to any you would that the recoup of And difference that there could first the of between And then business? think gross to far about? of the Thanks. we you most think we year you backlog quarter? about mostly any and out tied of of the should that exited quarter, expect how is first But half second the as think as the card. a sample-to-answer understanding half seasonality just excess move ownership the fourth margins wild as with of the is then coming backlog Harriss, I against quantify

Yes.

mentioned, scheduled that issues manage. buy to ARIES have that of to because of then So -- we Certainly, you revenue. and $XX if million you to in all XX-XX inventory think now deliver the of expiration issues about backlog when first split same half, the half close purchases also about think had second were we first are you Homi volume the you quarter, like of as wouldn't then

what add So accounts a is would you'd you this in expect at a tick to rate. rapid expect up volume, more

ordered. assay revenue, sort a would you that forecast That of the overall standard would the expect you all but volume that know of we a certainly we wouldn't expect to backlog number We've of quarter. is people go fast best for to plus oversupply can. we So up allocated satisfy get as What want us way ARIES They have that as that the people can. to product. we want as

we'll a number level, that that to to go. will, happens month, Now as you more placed those we work delivery order able to basis, from on fully delivered a to move, as meaningless regular for will for make and be supply those. once if that a we that once except scheduled orders down they are And over time almost orders those a once quarter, minor have right, customers week modifications future

V in Super. any launch? you number make far 'XX? as you new of color And II expect placements a sample-to-answer And as to then happen the of the do target to have timing

place, of of number beads, we right to will unless So, be XX% additional I assays. system sample-to-answer or We're did tell would I a comes XXX. from if to did an had our Every would whether as with opportunity investor middle, what certainly healthy yes, year, placements. on that. most be say the in this we tremendous it's discussions, likely, were, items, number, our almost royalties a those. Unlikely maybe recurring Last somewhere every we be that replacement, high going in of to we it year as mind you revenue you top revenue for see on layers it’s But XXX. have system but place, at we recent some keep is

with up more end as sell a you effect compounding and more as you go So you systems.

following and And new continue had volumes as top happens and so place the a the systems we you volumes the customers’ to that annualized in customers layer of the for only naturally, existing of year on if portion we growth year. will, customers’

you that will, of revenues lot if there on that drive upwards. math, us So a goes helps

Got you. Thank you.

bet. You

you. Thank

Next question with William from is Blair. Brian Weinstein

please. Your question

Griffin on you for question. Good Thank guys. is Hi, my for taking afternoon. This Brian.

in first how few you buying? sequentially And expansion capacity the marry us understand over you're Just up a down building Is with can can the that pricing coming help early in here, that bit, trend you ARIES? last then molecular diagnostics with or the quarters?

question. good a it's Yes,

We the COVID-XX offerings VERIGENE any VERIGENE the have but I, molecular we diagnostic, solution not have heard COVID-XX. have in I you have Luminex it’s It's or NxTAG, we yet, not the the and solution remember for earlier, to overall. in as three ARIES. did did really any

to expand now of and testing, we product, less we ARIES, up pressure are or less that we doubling there -- it well. is because less On of As is on until production felt the and from a there specialization a them. fill quickly. matter revenue testing continued there culture put fact, as very ramp obviously pressure that's And blood this QX QX, and maximum GI less we were so in because in

the because buy again, very next the of revenue So issue. of the us We everybody fairly manufacturing. in the of respiratory that up beginning give the to the same having -- ran really had And it's risk tremendous online, the of will product. and ramp step, the coming expansion pandemic,

Now COVID-XX. there are more the concentrating on

and And we saw in so declining. the not we number. have COVID-XX the beyond more stagnant that's but going become It's before not little bit solution, what a

So, us goal out moving will forward. really coming ARIES for the the of be

in -- on We our we before pandemic. pressure because cases, most our have any pricing, the we not prices we not were sell thing more fairly prices to any keeping the – have the used in of seen one seen about what and to

million 'XX, million base for pretty in the from right that's the XX looking the on you on RSP, touch it bump And to ARIES, so call more mid-single Why about bit XXXX. most little on guide, can ARIES, Okay. coming from a at just and tests a here that about digit of the is assumption XX just you're big build that the in incremental X number XXX?

business, flow of correct, the the on side life digit talking You're partner mid-single the growth? business, the and science’s business

Yes.

recovery third for all, about it We going Well, live it going and affected of seeing it's with learn year. going science to the last year, bottomed believe does, but the in especially be effectively life totally but it's see way is modest talked not as with with this side. We We that to recovery out they the recoveries growing in began us people our to to to That's don't a last year, this first growth we're some certainly partners slower, will $XXX COVID year. that flow much It we're rates was affect too around of And that year. plan, to to while, Flow year. there -- the from aggregate it, see overcall recovery. where affect to XX%, maybe quarter smaller to digits going we on got higher want a last million We little the anyway. this $XXX hard mid a hit growing the higher. of number. only begin The should at there. business. to million continue recover little And high-single of business some a see markets

the diagnostics is together and life you’re we'll the and call You business manufacturing. molecular digits plus the add mid-single in at XX all because grows of that and science what

cannot conservative you COVID-XX. was we because of part okay. the new Yes. then And but to travel be strain going talking challenge -- install about systems, And We initially here the people we -- about of we Europe, think that's be, sold now. can to long look is in need now QX QX, when to how some

number be we and hope need If you to be will conservative. we beat we the will So beat the all number, happy. we

number mid-single best come science can quote up or the between We this to is is going want to stage, whatever. digit something okay, go this with think under not X life out. situation, at do is to X we So put XX% we saying,

it. an Got more just you're give raise an million Can Thank cash. that here intent helpful. seeing And given how update M&A, That's we're in to over you. about thinking space us valuations that capital squeeze and today? the This is on really deployment. XXX in capital driven one convert you in targets with on

we pretty that A the acquisitions made. of number believe to And acquisitions are we've the today. diligent overpriced. price We're lot a overpriced tended options been seeing options made, for because Yes. tremendous we've we've pay about reasonable of we've careful, very a

share We can to we dividends to of will value. make And themselves. don't, things ensure decisions if around obviously those. realize those a that shareholders We amount opportunities other or look buybacks other believe reasonable for have our or that present to we increased then continue they do

Great. Thank you.

You bet.

Instructions]. you. Thank [Operator

Our next from JPMorgan. with Peterson question Tycho comes

please. question Your

a for new that the Casey rollouts, you little This VERIGENE about INTELLIFLEX maybe baking about II? XXXX, back could going a bit maybe Tycho. and the talk upside a XXXX what Hi. Maybe is talk How much guide, for product product or just little in maybe just cycle to to on can bit you're dynamic? contribute new

the get said, We when the in we obviously obviously it's There goal the planning all II, we take in are is at that X% keep into ramp the upside, life for the EUA, out we because but get of to too we and put from of manufacturing. it's Harriss look other guidance we'll which it. baked, it the a some lot order guidance the X%, of opportunities the really in the ARIES to but as X% to there. INTELLIFLEX came science this the product, X% along, life and up budget to is science But submit, year. that. we approval as as really And new a cannot that's ratios an agency we of and saying, the on way much VERIGENE bake bake

the opportunity very thought any one, up more number of for opportunities that that think would and for are product. the than because VERIGENE maybe the are go products move us an And on edge. from secondly, the speeds fringe those COVID So placements could non-COVID their clearance ever FDA we related gastro resolves that better instance, open products. II new modest with if faster One, for on up of contributions on

II, customers VERIGENE the I onto II. new the we number have, Converting So success who we'll increase menu faster faster customers -- the more VERIGENE the it, bigger can number use two. with Acquiring old one. on VERIGENE the

more Got OpEx. it? maybe And then for me on just one

flat should for our in above. I and guiding think around little for this expectation came XXXX a been have to What it guys XXXX, OpEx be OpEx year? you

because around guiding we – XXX, started things we if the mid to and OpEx XXX XXX. had our we was mainly guidance other Don't the to XXX, came around guidance that were – commission not Yes, mistaken, forget came was pay. I’m when year, of the

R&D So company also took depreciation when and on we do certain you needed things. you ready finish already year. that increased more the year at and other has accelerate for or yes, But place done XXX, getting the this commission, think you need activity, to to I items pay

have And the will we the at as cetera. look pandemic as I XXX, are that commission to at controlling job yes, II this mainly travel, are see day pandemic. plans done we an preparing in also we after clinical obviously, our but the the we when in -- guidance assume think amazing you preparing obviously OpEx on some in So we more to the we VERIGENE ARIES, et there, looking are

into all it's XXXX. taken So been for account

than but less growth, the about. level talking revenue that growth expect of we're growth is So that

So up margin of passing maintenance incremental appropriate we profit. that to that operating with profitability some down end

So year have been operating investor some where you recent result, presentations for grow of expectation of a an here. we've well. may we profit, increase And EBITDA our seen to as as the course, calling again of

of expect would the in earnings. you So all maintenance, revenue, resulting margin of growth in control OpEx growth with

Got it. Thank you.

You bet.

his I to would this call concludes like the Shamir final today. for session back And Homi remarks. to Q&A you. for our Thank turn

person for near you you, call. on our your We forward future. Thank operator, to very in the you everyone seeing attendance thank look in and earnings

today's and your in you, participation gentlemen, for Thank conference. ladies

Have disconnect. now good may a night. You