GenMark Diagnostics Inc. ( GNMK - Snapshot Report ) , a leader in multiplex molecular test systems increased its revenue guidance for the second quarter and full-year 2012. For the second quarter, it now expects revenue to be in the range of $3.2 million to $3.6 million. It also expects more than $15.0 million revenue compared with its earlier guidance of more than $10.0 million for 2012.

The revision is primarily based on its strong year-to-date performance. The revised second quarter guidance implies a sequential revenue growth rate in the band of 48.2%-66.7%. The 2012 guidance implies more than three-fold year-over-year jump in revenue.

Management stated that the sound strategy execution has increased market penetration of its products. Given the increase in the utilization rate of its testing system, coupled with estimated growth on the back of test menu expansion, management has raised its revenue guidance. Demand for the company’s products has been stronger than prior expectations, thereby reflecting a dynamic and robust growth opportunity. The upturn in guidance is in fact aligned to market expectations.

The Zacks Consensus Estimate for the second quarter and full year are $3 million and $13 million, respectively. Thus, company guidance exceeds the Zacks Consensus Estimate for both the periods. We expect a positive estimate revision in the near-term, based on the company’s optimistic view.

Net loss from operations and the company’s failure to achieve profitable growth remains an overhang. The operating expenses are expected to increase in the coming years as the company attempts to expand its customer base and increase research and development expenditure to upgrade its technology. Increasing competition from Gen-Probe Inc. ( ) and Nanosphere Inc. ( NSPH - Snapshot Report ) is also a matter of concern.

However, the rigorous sales and marketing efforts coupled with production efficiency is expected to yield positive results for GenMark. The favorable market conditions and extended customer base are also expected to boost the company’s top-line. The stock currently retains a Zacks #2 Rank, which implies a short-term Buy rating.