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Standard BioTools Inc. (LAB)

Q3 2017 Earnings Call· Fri, Nov 3, 2017

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Transcript

Operator

Operator

Good day, ladies and gentlemen, and welcome to the Fluidigm Third Quarter 2017 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Ana Petrovic. Please go ahead.

Ana Petrovic

Analyst

Thank you. Good afternoon, everyone. Welcome to the Fluidigm Third Quarter 2017 Earnings Conference Call. At the close of the market today, Fluidigm released the financial results for the third quarter ended September 30, 2017. During this call, we will review our results and provide commentary on recent commercial activity, market trends and our strategic business initiatives. 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 be making 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 benefits of strategic initiatives and partnerships; opportunities, demand, sales pipeline and support for our other product lines; benefits of new product introductions; cash management and other financial plans; and projected financial results for the fourth quarter 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 and uncertainties and other information affecting our business and operating results is contained in our annual report, in our most recent Form 10-Q for the quarter ended June 30, 2017, and in our other filings with the SEC. The forward-looking statements in this call are based on the information currently available to us, and Fluidigm disclaims any obligation 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.

Chris Linthwaite

Analyst

Thank you, Ana. Good afternoon, everyone, and thank you for joining our third quarter 2017 earnings call. The recent quarter was one in which we are fostered innovation, partnered with customers and delivered on commitments. We continued to do what we said we’d do in terms of market and customer-centric strategies, implementing cost discipline and seeking new business model efficiencies. We posted revenue within guidance. More importantly, we saw customer excitement for the evolving technology and unique value propositions we are delivering, an increased in employee engagement as Fluidigm demonstrated progress in our turn and our drive to turn the business around. I’d like to begin by noting that on October 24, we delivered or reached a noteworthy milestone in the delivery of new breakthrough innovation to empower the global research community. Bringing Imaging Mass Cytometry to market has been a major step forward in positioning Fluidigm for a return to sustainable growth. Our Hyperion Imaging System is an expansion and broadening of our mass cytometry franchise and it joins our existing Helios suspension mass cytometry system in delivering a unique 1-2 combination of technologies in protein analysis. In Greek mythology, Hyperion was a titan who presided over the sun. Hyperion represented light, wisdom and watchfulness. Helios, son of Hyperion, means watcher from above. Both names suggest extraordinary vision and insight and speak to our aspirations for these systems as a company. The Hyperion Imaging System is further evidence of our commitment to innovation and to answering unmet needs in high-parameter analysis, particularly in oncology, immunology and cancer immunotherapy. We envision this imaging technology becoming central to breakthrough research in these fields with significant impact on the precision medicine approaches of the future. Hosting the launch of Imaging Mass Cytometry in Toronto last week was a great moment for Fluidigm…

Vikram Jog

Analyst

Thanks, Chris, and good afternoon. Total revenue of $24.7 million in the third quarter increased 12% from $22.2 million in the year ago period and was up 3% from $23.9 million in the second quarter of 2017. Instrument revenue of $10.5 million in the third quarter increased 15% from $9.2 million in the year ago period due to increased mass cytometry revenue, partially offset by lower genomics revenue. Consumables revenue of $10.1 million in the third quarter increased 14% from $8.8 million in the year ago period, primarily due to increased sales from mass cytometry and high-throughput genomics products, and partially offset by lower single-cell genomics products. In the third quarter, our annualized consumables pull-through per active system were as follows: Mass cytometry pull-through tracked above our projected range; BioMark and EP1 pull-through tracked in line with our projected range; while Access Ray, Juno and C1 pull-through tracked below our projected ranges. Consumables pull-through in the third quarter was consistent with the performance in Q2. Services revenue of $4.1 million in the third quarter was in line with the year ago period. From a product perspective, genomics product revenue of $10.3 million decreased 20% from $12.9 million in the prior year period, mainly driven by lower single-cell genomics revenue. Mass cytometry product revenue of $10.3 million increased 102% from $5.1 million in the prior year period, primarily due to increased revenue from instruments and, to a lesser extent, increased revenue from consumables. By customer type. In the third quarter, research customers accounted for 67% of our total revenue, and applied customers accounted for the remainder. Geographic revenues as a percentage of total revenue in the third quarter were as follows: the United States, 45%; Europe, 31%; Asia-Pacific, 20%; and other, 4%. Year-over-year total revenues in the third quarter declined 11%…

Operator

Operator

Q - A -

Ana Petrovic

Analyst

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 fourth quarter of 2017. Good afternoon, everyone.

Operator

Operator

This concludes today’s conference call. You may now disconnect.