Good afternoon. My name is Tania and I will be your conference operator today. At this time I would like to welcome everyone to the Fluidigm Second Quarter 2017 Financial Results Conference Call. [Operator Instructions]. Ms. Ana Petrovic?

Thank you. Good afternoon, everyone. Welcome to the Fluidigm second quarter 2017 earnings conference call. At the close of the market today, Fluidigm released financial results for the second quarter ended June 30, 2017. During this call, we will review our results and provide commentary on recent commercial activities, market trends and our strategic business initiative. Presenting for Fluidigm today will be Chris Linthwaite, our President and Chief Executive Officer; and Vikram Jog, our Chief Financial Officer. During the call and subsequent Q&A session, we will make forward-looking statements about events and circumstances that have not yet occurred, including plans and projections for our business, future financial results and market trends and opportunities. Examples of these forward-looking statements include statements regarding our business prospects and growth, the implementation and anticipated benefit of strategic initiatives and partnerships, opportunities, demand, and sales expectations for our products, new product launches and applications for and anticipated benefits of our products, cash management and other financial plans and projected financial results for the third quarter and second half of 2017. These statements are subject to substantial risks and uncertainties that may cause actual events or results to differ materially from current expectations. Information on these risks, uncertainties and other information affecting our business and operating results are contained in our annual report in our Form 10-Q for the quarter ended March 31, 2017, and in our other filings with the SEC. The forward-looking statements in this call are based on information currently available to us, and Fluidigm disclaims any obligations to update these forward-looking statements except as may be required by law. During the call, we will also present some financial information on a non-GAAP basis. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the Company's operating results as reported under U.S. GAAP. We encourage you to carefully consider our results under GAAP as well as our supplemental non-GAAP information and the reconciliation between these presentations. Reconciliations between GAAP and non-GAAP operating results are presented in a table accompanying our earnings release, which can be found in the Investors section of our website. I will now turn the call over to Chris, our President and CEO.

Thank you, Ana. Good afternoon, everyone, and thank you for joining our second quarter 2017 earnings call today. I'm excited to share updates on the Fluidigm story. We've made great strides towards returning Fluidigm to sustainable growth, driving an aggressive turnaround program that touches every aspect of our business and evolves every employee in the company. Fluidigm met total revenue guidance for the third consecutive quarter. In fact revenue was in the upper range of second quarter guidance, as we continue to execute on our commercial strategy and pivot towards more attractive markets. We are proud of our progress in recent months. We are fostering innovation, partnering with customers and delivering on commitments. We are emphasizing discipline and ROI fundamentals with regard to internal efficiencies improvements and cost management. In short, we are doing what we said we do. Increasingly we’ll be reaping the rewards of these actions, you will see it reflected in our guidance. Today, we will review proof-points, that attests to the effectiveness of our turnaround. No doubt there is much work to be done, but I want you to know that we are encouraged by our progress, excited by our strategic direction and increasingly confident about the future of Fluidigm. I'm going to begin with our financial results for the quarter, provide some comments and context with regards to our markets and strategies. And then conclude with top line Q3 guidance. The I'll turn the call over to our CFO Vikram Jog, who will provide more depth on these results as well as examples of our progress on OpEx management and other aspects of our financial strategy. Onto our quarterly results. Total revenue decreased 15% to $23.9 million compared to a year ago quarter due to lower revenue from instruments and consumables and partially offset by…

Thanks Chris and good afternoon everyone. Total revenue of $23.9 million, in the second quarter declined 15% from $28.2 million in the year ago period, and was down 6% from $25.5 million in the first quarter of 2017. As a reminder, last quarter we said that we expected Q2 revenue to be down sequentially, primarily due to fulfillment of the early adopter orders for the imaging mass cytometry system in Q1 of 2017. Instrument revenue of $9.9 million, in the second quarter decreased 25% from $13.2 million in the year ago period due to lower genomics revenue primarily from Single Cell Genomics. Consumables revenue of $9.6 million in the second quarter decreased 17% from $11.5 million in the year ago period, primarily due to lower sales from genomics products, partially offset by increased revenue from mass cytometry reagents. In the second quarter, our annualized consumables pull-through per active system was as follows; Biomark and EP1 pull-through tracked in line with our projected range. Access Array, Juno and C1 pull-through tracked below our projected ranges and mass cytometry pull-through tracked above our projected range. Service revenue of $4.3 million in the second quarter increased 27% from $3.4 million in the year ago period driven primarily by post warranty service contracts and parts. From a market perspective genomics product revenue of $10.9 million decreased 35% from $16.8 million in the prior year period, driven by lower single cell and high throughput genomics revenue. Mass cytometry, product revenue of $8.6 million increased 9% from $7.9 million in the prior year period due to increased revenue from consumables. By customer type, in the second quarter research customers accounted for 73% of our product revenue of $19.5 million, and applied customers accounted for the remainder. Geographic revenues as a percentage of total revenue in the…

[Operator Instructions] Your first question comes a line of Bill Quirk from Piper Jaffray. Your line open.

Great, this is Alex Nowak, on for Bill. I was just hoping of what is specifically driving the renewed interest in the mass cytometry. Just trying to get a sense if – is just the market starting to wake up to the platform or is Fluidigm specifically putting out more sales marketing support material, that’s starting to get existing customers and new customers interested in the system.

Hi Alex thanks for the question this is Chris. I think it's a combination of a number of things. I believe as we started kind of in the prepared comments certainly the cumulative effect of the publications is creating a cumulative interest in the platform. But more importantly I think as you’ve seen in kind of things like the Mass Cytometry Conference that we held in Boston, it's really users speaking to, prospective users that are giving us a multiplier effect. So, as these proof points as we transition from the early papers were about proving the methods and now we're beginning to see true stories, successes in both identifying a new insight into cellular systems or understanding mechanisms of disease as well as perhaps some exciting breakthroughs as it relates to treatment options, that are applicable for combinatorial therapies today in the clinic. And so the mix of the customers is shifting in the background for us, and that's the primary one, the second is we are seeing, we are putting more focus with our selling organization, and with marketing as well as we started putting out content. And so I think as you see us putting out more fixed content or adding to our large position in antibodies that have been prevalidated, our Maxpar reagent that have been prevalidated for use in our system. I think you're seeing the networking effect occur and we’ll continue to feed that with each successive quarter.

Alright, that's helpful and then I know this CyTOF instrument isn't particularly user-friendly, so I was just curious are you working on building a system that's easier to use that would be designed for the clinical lab.

Well you know what we're finding, and I visited with scores of customers in the course of the second quarter, is that depending on the customer's experience curve the system isn't exactly that difficult to use. I mean there are stories I can tell you in specific customers that have mastered the technology quite readily. What we've been trying to do is create associated portions of the ecosystem that make it easier to use. So by having a larger and antibody library, by helping work-through more fixed content with them, providing them custom services for developing that content. And most remarkably, is actually releasing improvements in our software that is allowing easier interpretation of the data. I think that's where we're seeing the fundamental breakthroughs and improvement in usability. We put a special focus on that over the past nine months in particular since I became CEO. I'm making improvements to make it easier, with the existing system to increase up-time and usability of the system overall. I think any other comments would be premature about feature improvements to the system but we are taking continuous feedback in a very deliberate manner to look for ways to make this system ever more easy to use.

Okay that's helpful and I just want to shift. That’s it, last question here. Over to Single Cell, so I was just hoping to reconcile your statement on Single Cells this quarter to what you said in Q1. So, in Q1 I think you said, you’re going to be focusing less on Single Cell and developing new Single Cell products. But now just a statement in the press release today, talks about continuing to invest in Single Cell innovation. So I was just curious how should we think about Single Cell development at Fluidigm going forward.

There's nothing incongruent about this statement in the press release, today as compared to the comments in the first half. So I think what we talked about is a continued commitment to innovation and we are putting significant portion of resources forward to develop new content. What I was trying to think lay before you in the first half of the year or the first quarter was that the mix of spend has shifted. So relative to what Single Cell was in the historically for Fluidigm, we have shifted more resources proportionally into mass cytometry and into high throughput genomics.

Okay, that's helpful thank you.

Your next question comes from line of Doug Schenkel from Cowen and Company. Your line is open.

Hey guys this is Adam Wieschhaus on for Doug. Thanks for taking my questions. Against the prior roll-out for the imaging mass cytometry this fall, can you just provide your updated thoughts on how we should think about that market size. I think you noted in your prepared remarks, it allows you access to an entirely new market opportunity. May relate to that, what percentage of current customers do you think are likely targets for this emerging capability.

Adam first thanks for the questions. I think what we will probably do is maybe when we get an opportunity later in a private session we can work at a more detailed level as it relates to that. I think at this stage we're not prepared to work through the dynamics of two markets.

Okay, fair enough. And you've also now announced several products and agreement over the last few months. Can you briefly provide how you’re strategizing future product launches and R&D investments, maybe as it relates to your various instrument aligned in-market opportunities.

Yeah, as I probably will reference back to the first time we spoke in Q4 of last year, we are making very few forward-looking statements as it relates to research and development. And historically Fluidigm had announced new systems perhaps in advance of their commercial availability. And in this particular situation I think we're not going to talk too much about systems or content going forward. But what we intend to do, I think in the second half of this year through investor conferences et cetera we'll start laying out more specifically or more clearly the broad areas in which we're investing, and the types of content the types of software and the types of instruments, improvements you might imagine from us in the coming years.

Okay. Thank you.

Thank you Adam.

I am showing no further questions at this time. I would like to turn the conference back to Ms. Ana Petrovic.

We'd like to thank everyone for attending our call. A replay of this call will be available on the Investors section of our website. This concludes the call, and we look forward to the next update following the close of the third quarter of 2017. Good afternoon, everyone.

Ladies and gentlemen this concludes today’s conference. Thank you for your participation and have a wonderful day. You may all disconnect.