Hello, and welcome to the Standard BioTools Inc. Fourth Quarter and Full Year 2022 Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter DeNardo, Investor Relations. Thank you. Mr. DeNardo, you may begin.

Thank you, operator. Good afternoon, everyone. Welcome to Standard BioTools fourth quarter and full year 2022 earnings conference call. At the close of the market today, Standard BioTools released its financial results for the quarter and fiscal year ended December 31, 2022. During this call, we will review our results and provide commentary on our financial and operational performance, market trends and strategic initiatives. Presenting for Standard BioTools today will be Michael Egholm, PhD, Chief Executive Officer and President; and Vikram Jog, our CFO. During the call, we will make forward-looking statements about events and circumstances that have not yet occurred, including plans and projections for our business, our outlook for 2023, and future financial results and market trends and opportunities. These statements are subject to substantial risks and uncertainties that may cause actual results or events to differ materially from current expectations. The forward-looking statements in this call are based on information currently available to us as we disclaim any obligation to update these statements, except as may be required by law. During the call, we will also present some financial information on a non-GAAP basis. We encourage you to carefully consider our results under GAAP as well as our supplemental non-GAAP information and the reconciliation between these presentations, which are disclosed in the table accompanying our earnings release. Please note that management will be referring to a slide presentation, including updated supplemental financial information within the webcast today, and this presentation is also posted on our website. I would also like to note that the company will not be hosting a Q&A session following prepared remarks during today's conference call. I will now turn the call over to Michael Egholm, our Chief Executive Officer and President. Michael?

Thank you, Peter. I would like to start by thanking our employees around the world for their hard work and dedication throughout 2022. It was a transformative year that brought significant change to the organization. The commitment and resilience exhibited by the Standard BioTools team, while we navigated a leadership transition, corporate rebrand, sales team rebuilds and cost-cutting initiatives, has been truly remarkable, to say the least. Most of all, I'm proud of the cultural transformation with our employees' strong embrace of Standard BioTools Business System, or SBS. I'd also like to thank all the investors who have supported standard Bio tools as we embarked on our mission to reenergize this company and create a leading life science tools platform, building a portfolio of exciting products that, when unleashed, will help accelerate breakthroughs in human health. During the call today, I will provide a summary of our fourth quarter and full year 2022 financial performance and operating highlights as well as expectations for 2023. I will outline progress against our key strategic priorities and discuss where the business is heading, which we believe is positioning us for sustainable growth and profitability. I'll then turn the call over to Vikram for a more detailed look at our financial performance and guidance. When we joined three quarters ago, the company was losing market share despite its innovative and differentiated products, a victim of lack of effective response to emerging competition and poor and unfocused execution across the board. We acted swiftly and put a strategy in place to streamline the business with a focus on our value propositions combined with sales enablement to ensure consistent growth of the top line and a path to profitability. We have made significant progress on our key objectives, and I'm pleased with the second consecutive quarter…

Thanks, Michael, and good afternoon, everyone. As Michael noted, we are pleased with our results for the fourth quarter, which showed top line sequential improvement in our core revenue. Let me begin with a review of core revenue for the fourth quarter and full year 2022. Core revenue for the quarter was $26.8 million, an increase of 8% sequentially. Core revenue in the fourth quarter of 2021 was $35.1 million. Core revenue excludes revenues from discontinued products, including COVID-19-related products and other revenue. Recurring revenues, which include consumables and service, were 72% of core revenues. For the full year 2022, core revenue was $94.5 million compared to $111.6 million in 2021. Recurring revenues, including consumables and service, were 71% of core revenue for the full year. Moving now to our operating performance. GAAP product and service margins for the quarter expanded 620 basis points to 40.9% relative to the third quarter. Non-GAAP product and service margin, which excludes noncash charges, primarily for amortization of developed technology, grew by 520 basis points to 52.9% compared to the third quarter. For the full year 2022, GAAP product and service margin was 36.7% versus 51.5% in 2021, while non-GAAP product and service margin was 50.2% versus 62.2% last year. Operating expenses in the fourth quarter declined sequentially by 16% to $32.3 million on a GAAP basis and declined 9% to $30.2 million on a non-GAAP basis. For the full year 2022, operating expenses were $153 million versus $137 million in 2021. On a non-GAAP basis, which primarily excludes non-cash charges for stock-based compensation, operating expenses were $133 million versus $118 million in 2021. Our operating results in 2022 include charges related to the capital infusion transaction retention, severance, inventory and other write-downs associated with discontinued products and other costs associated with the phased…

Thank you, Vikram. This concludes our fourth quarter and full year 2022 financial results call. We'd like to thank everyone for attending our call today. As we do not currently have any covering analysts, we invite interested parties to contact us directly to answer any questions they may have. A replay of this call will be available on the Investors section of our website. Again, thank you for joining us today.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.