Hello, and welcome to the Standard BioTools Inc., Second Quarter 2023 Financial Results Conference Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Scott Greenstone, Vice President, Investor Relations and Business Development. Thank you. Mr. Greenstone, you may now begin.

Thank you, operator, and good afternoon, everyone. Welcome to the Standard BioTools Second Quarter 2023 Earnings Conference Call. At the close of market today, Standard BioTools released its financial results for the quarter ended June 30, 2023. During this call, we will review our results and provide commentary on our financial and operating performance, market trends and strategic initiatives. Presenting for Standard BioTools today will be Michael Egholm, Chief Executive Officer and President; and Jeff Black, Chief Financial Officer. During the call, we may 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 events or results to differ materially from current expectations. The forward-looking statements in this call are based on information currently available to us, and 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 believe that these non-GAAP financial measures are useful in evaluating our core performance and as a baseline for assessing our future earnings potential of the Company. We use these non-GAAP measures in our own evaluation of continuing operating performance. 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, Scott, and good afternoon, everyone. We appreciate you joining us on the call today. First off, I would like to welcome Jeff Black, our Chief Financial Officer, to the Standard BioTools team, and thank Vikram Jog for his 15 years of service and dedication to this company and wish him the best in his next endeavor. Jeff brings years of relevant operational and capital markets experience, having most recently played pivotal leadership roles in two successful med tech turnarounds. We are already seeing his impact after two short months, and he will be an integral member of our leadership team as we execute on our vision to create the next diversified life science tools player. During the call today, I'll provide a summary of our performance and discuss where the business is heading. My comments today will focus primarily on our first half 2023 progress as this year-to-date perspective is more representative of the progress we're making in our corporate transformation versus what any single quarter might suggest. I will then turn the call over to Jeff to offer a more detailed look at Q2 and our first half financial performance. Today, I'm more encouraged by the business and our progress than have been since joining five quarters ago, while remaining humble about the work still ahead. I'm pleased to report that in the first half of 2023, we delivered 17% revenue growth, with 47% growth in the most recent quarter compared to 2022. In addition, through the first half of 2023, we saw over 1,000 basis point improvement in non-GAAP gross margins and nearly $18 million and more than 25% reduction in non-GAAP operating expenses and a $28 million and more than 60% reduction in operating cash burn compared to 2022. We remain early in our corporate…

Thanks, Michael, and good afternoon, everybody. It's a privilege to be here today and a part of the Standard BioTools team. As Michael noted, we're pleased with our results for the second quarter and the first half of '23, delivering year-over-year top line growth, gross margin expansion, significant decrease in OpEx and sustained improvement in operating cash flows. As Scott mentioned earlier, let me remind you all that I will refer to non-GAAP numbers in today's discussion. Non-GAAP measures exclude certain non-operating and noncash items, and a reconciliation of GAAP and non-GAAP measures are provided at the end of our earnings press release that was issued earlier today and in our earnings call presentation. With that, let me begin with a review of revenue. So note that over the past several quarters, we've reported on core product and service revenue, which excludes revenue from discontinued and other revenue. With the product portfolio refocus behind us today and going forward, we will discuss total revenues. And keep in mind that our second quarter and first half of 2022, reported revenue includes a revenue offset from a onetime $1.6 million reserve related to our discontinued LCM product line in our genomics business. And this is the last of our legacy issues impacting year-over-year revenue comparability. Total revenue grew 47% year-over-year to $27.7 million for the second quarter and 17% to $52.8 million for the first half of '23. This growth has been led by increased instrument placements, primarily in our Proteomics end-user markets. Looking at our revenue mix. Instrument revenue grew over 300% in the second quarter and over 70% year-to-date, while growth in our combined consumables and services revenue has been flat to moderate. Note that the uptick in instrument revenue should set us up well for increased consumables and services…

Thanks, Jeff. Good to have you onboard. While it's still early days, I'm encouraged by our progress to date. In our first few quarters, we focused on operational improvements and continue to see those impacts. This quarter, we saw the business return to a healthier revenue growth. And while we see some variability on a quarter-to-quarter basis, we are on a much stronger footing now and well on our path to achieving profitability. We also firmly believe we have established a great foundation underpinned by SBS to spearhead much-needed consolidation in our industry. We will approach these opportunities with thoughtful rigor. I conclude by thanking the team for their execution and investors for their patients. And while we need to celebrate revenue growth, gross margin expansion and operating expense production in just five quarters, we remain humble and see all the work still left to do in a market environment existing in peak uncertainty. We look forward to providing you further updates and seeing many of you at our upcoming investor conferences, including Canaccord's 43rd Annual Growth Conference in Boston later this week, and the UBS Medtech Tools and Genomics Summit in DataPoint next week. Operator?