10x Genomics Provides COVID-19 Business Impact Update and Response
- Provides Preliminary Revenue Range for the First Quarter 2020
- Withdraws Prior 2020 Annual Revenue Guidance
PLEASANTON, Calif., April 09, 2020 (GLOBE NEWSWIRE) -- 10x Genomics (Nasdaq: TXG), today provided an update on the actions it is taking to focus its business operations to support critical research in response to the coronavirus (COVID-19) pandemic as well as the financial impact.
- Supporting COVID-19 Research. During this pandemic, we moved quickly to place instruments and to provide reagents to clinicians and researchers around the world working on understanding COVID-19 and developing cures for the disease. 10x’s products are a critical tool for infectious disease research because they allow the detailed understanding of how the virus impacts infected people, how the immune system is mobilized, which immune cells react to pathogens and many other aspects of the disease and potential therapies. Many researchers have moved our Chromium Controller instruments into a Biosafety Level 3 (BSL3) facility, where they can be as close as possible to the front lines of this battle against COVID-19.
- Protecting Our Employees. 10x has been designated an essential business that can continue necessary operations during the COVID-19 outbreak. In early March, we promptly instituted protocols to have many personnel work remotely. At the same time, we have employees who are continuing to support essential operations to provide critical products to researchers and who are continuing important research and development functions. For those employees, we have implemented strict social distancing and other protective measures in order to ensure their health and safety. We have also restricted business travel and have closed our campus and other facilities to outside visitors.
- Product Supply and Customer Support. Our production, shipping and customer service functions remain operational to ensure we maintain a continuous supply of products to our customers. We are communicating regularly with our suppliers so that our supply chain remains intact and we have not yet experienced any supply issues. Our customer service teams around the world are operating remotely and remain available to assist our customers and partners as needed.
- Reviewing Operating Expenses. In light of the current situation, we are actively reviewing and managing all costs to navigate the current environment, and to allow 10x to remain in a strong financial and operating position until the pandemic is brought under control.
“Our two most critical priorities right now are to ensure the health and safety of our employees and to provide our customers with the solutions they need to fight COVID-19,” said Serge Saxonov, co-founder and CEO of 10x Genomics. “While none of us have seen a pandemic like this in our lifetimes, we have also never seen so much of the global scientific community focused with so much intensity on a single goal. Our products are an important part of the arsenal to combat COVID-19, and we will do all we can to help our customers until the pandemic is under control.”
Preliminary First Quarter 2020 Revenue
Revenue for the first quarter of 2020 is expected to be in the range of $71 to $72 million, an increase of 33% at the midpoint over the prior year period. As the pandemic spread from China to countries worldwide, the company saw a significant reduction in customer activity other than research related to the virus. Social distancing and stay-at-home orders have temporarily closed many academic and government labs.
The company currently believes that its existing cash position, along with cash generated from sales of its products, will be sufficient to meet its anticipated cash needs for the foreseeable future.
Update on Full Year 2020 Outlook
Given the ongoing uncertainty of the scope, duration and impact of the pandemic, 10x is currently unable to reasonably estimate its financial performance and is withdrawing its previously announced annual revenue guidance for 2020, which was issued on February 18, 2020.
The company plans to provide final financial results and additional information related to the impact of COVID-19 on its upcoming earnings call, which is expected to be in early May.
About 10x Genomics
10x Genomics is a life science technology company building products to interrogate, understand and master biology to advance human health. The company’s integrated solutions include instruments, consumables and software for analyzing biological systems at a resolution and scale that matches the complexity of biology. 10x Genomics products have been adopted by researchers around the world including 97 of the top 100 global research institutions and 19 of the top 20 global pharmaceutical companies, and have been cited in over 700 research papers on discoveries ranging from oncology to immunology and neuroscience. The company's patent portfolio comprises more than 700 issued patents and patent applications.
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