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Ana Petrovic | Director, Corporate Development and Investor Relations |
Chris Linthwaite | President and Chief Executive Officer |
Vikram Jog | Chief Financial Officer |
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.
you. Thank everyone. afternoon, Good Fluidigm XXXX the Conference Third to Earnings Quarter Call. Welcome today, close quarter the XXXX. of the Fluidigm ended the XX, third At the market released for financial September results
commentary review our and and business Vikram Executive Financial Linthwaite, initiatives. today Chief results will our market Fluidigm strategic we Officer. for Jog, be call, commercial activity, our this and During Officer; provide will on Presenting President recent trends Chief our Chris and
forward-looking strategic SEC. statements for as we During and with demand, and and on regarding to pipeline for about projected be and of the forward-looking the statements statements these future recent are introductions; from ended the XX-Q filings risks us, our plans; to initiatives available our the include of operating expectations. forward-looking differ and events prospects and to market in by financial other The or the be currently our on cash substantial Form call financial Examples materially contained law. XXXX. yet may projections any Fluidigm in our to for plans is cause results in quarter and uncertainties These and forward-looking other of this risks growth; most and partnerships; trends and business, management results the June events except may obligation sales report, of subject that session, these that required implementation information new XXXX, and our and including support actual are and information XX, uncertainties will Information and affecting current lines; results business and business statements update other benefits and annual disclaims our call based in benefits product not Q&A our other have financial product circumstances results statements these quarter and opportunities. opportunities, making fourth subsequent occurred, statements anticipated for
our information we well basis. turn as you set between will between to call, results found the not reported our encourage reconciliation our operating information GAAP. of as table GAAP our carefully a financial should non-GAAP a the comprehensive to of presented CEO. I supplemental an accounting supplement accompanying also company’s results only used GAAP of the Chris, be non-GAAP on and is We to U.S. our information which under presentations. release, under in During and results as non-GAAP and Non-GAAP consider the rules some Reconciliations earnings these in under understanding will a President present call are prepared operating can now Investors the website. section and over be
third we Thank innovation, delivered you, recent and and Ana. fostered XXXX earnings for commitments. on one The joining are quarter everyone, was thank customers you Good in afternoon, which our with partnered quarter call.
We We continued customer-centric to discipline guidance. of within said cost do revenue efficiencies. in model posted we and and market strategies, new what business we’d seeking terms do implementing
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in worldwide. centers to a instrument segments: continue on focus medical and targeted strategy customer biopharma, key CROs, placement We academic cancer associated centers
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cytometry by more forward excited continue and you. and mass it We be of look with on groundbreaking research sharing based to to inspired
are Mass Cytometry the particularly Now in mind, bear Imaging these for early business. days,
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move to genomics. Let’s on high-throughput
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As result XXXX, you’ve new with seen is of often creative in this partnerships the customers. content
announced library rights sequencing Genetics microfluidic out agreement Fluidigm developed a of sequencing regulator offer Baylor research great Fluidigm Advanta Gene with a obtained the prep for our and to conductance A automated the enabling a coming Juno commercialize gene. assay assay, examples, library prep August cystic transmembrane As of licensing next-generation efficient innovation of example in fibrosis Baylor by Advanta XXX Expression opportunities this seek to use our for of end We applied at pharma, developed we diagnostics pharma system. XXXX. BioMark in was HD System. year by approximate on new the announced base relationships is high-throughput of that the Across markets. continue had business, Assay, Immuno-Oncology continuing systems installed and this other large-scale and an earlier genomics system. work content
for is Our utilization focus we consumables strategic High-throughput to market, competitive and, growing systems. primary is committed our share increase relative to market genomics ultimately, a of share. maintaining to and these are
– our product in expectations, less declines Moving less In single-cell. year-to-date sequential year-over-year X% with revenue represents single-cell saw line On product genomics. revenue revenue. we to basis, single-cell and or a of represented than total
function changes initiative provide noted of that in DNA Cell assets in single-cell single-cell our a gene in the Also, value epigenetics, have we’ve is as changes proposition. continue applications not before, noted, area to do as Human our example value sequence. we significant Atlas which such an As in heritable strong select an have products involve
we competitive However, market business this fighting face in with market for entrants headwinds significant new share.
each pillar of to progress, years. as strategic and the continue of and at with technology and prior a On innovate for to pillars. We strengthening partnership. our install customers, level Starting compared systems different our core albeit three our support innovation
and deliver initiatives. launch content We commitments, on continue to product strategy partnership
histoCAT agreement across identification of completed rights a software cellular distribute range Mass addition globally histoCAT a with enables Fluidigm Mass Cytometry agreement obtained for Cytometry. social of to Baylor Zurich Imaging states. the disease systems. unique with with the I to we the most in In networks the of earlier, histoCAT recently, University mentioned to distribution offer conjunction Imaging
Fluidigm. share to transition to a have develop We expertise. Mass initiative tools the use. of will techniques Excellence cytometry work undertaken this mass and suspension training broad refine new researchers and in content we be shared to excellence. XXXX first the accelerate recently and initiative with to academic plans to initiative, explore Cytometry. well be announcing operation Today, effort completed expand of widespread Mass a in mass technique major research with the develop will that Cytometry of agreement into Fluidigm an entity new with to recruit additional more and as cytometry and Imaging as Center Under centers Fluidigm are Fluidigm to extending center the
the licensing distribution particularly been I CEO Our six successful Since and strategy became throughout such year. customer for offerings, product entered in XXXX, partnerships, has innovating late partnerships. joint we’ve through into deals
the guidance. the operational quarter of Operating efficiency at lower pillar our third cost our and end for reduction. were expenses of Regarding
For compared and Fluidigm in our saw to expenses. period same negotiation the a reduction a engineering, on to XX% value expense of the vendor XXXX, year programs. we operational first ago, other nine months focus operating reduction continues
achieve taken of severance discipline initiatives reduce in programs years Fluidigm increasingly to time. the the our from is million find business and culture expected exit right-size adopting or as of certain other the more expenses to incremental million of we before savings savings to this expect $X We approximately in over the office to efficiency efficiency. ways savings increase These I sublease more XXXX transformation costs are in facilities. than cost result to Fluidigm expect $X over and a and Fluidigm’s organization. steps our four
Finally, significant in equity of and including Vikram ATM expenses discipline retaining at-the-market improve taken pillar manage on our or balance, financial cash of talent. address completion to which his remarks. steps offering, and improving We’ve our our will
the of program. and engagement an feedback measures front, Recent retention completion are of On included employee to have of purchase stock engagement streams and plan recent option exchange adoption programs we an our that have I by employee multiple do survey. talent employee want annual note and informed the that work
remarks, my remain for guidance. regarding quarter fourth remainder of the the year. Finally, We optimistic revenue
our to past affirmation the was Fluidigm been delivers the represents I new for this is going expect that that research healthcare. an an of the we human capability total influencing does it that Fluidigm inspired innovation, the in $XX.X disciplined do. million we unmet It extraordinary carry results. Specifically entirely and the Fluidigm at needs on spirit improve says has final what its of fourth and community and quarter months Mass to may the the company the $XX.X a turn call Vikram, XXXX. a new, birth unlock condition. partnerships, the to quarter, million. further of We the of insights, be energized system. financial that over now invigorated and revenues Everyone review of of believe biological our believe it’s is of to fiscally future XXXX Cytometry Imaging I to speaks to It into creative for and our by launch answer informing a CFO, into commitment is
was good products. was million quarter XX% was $XX.X in range; partially Juno $XX.X genomics decreased was in year revenue quarter lower from increased Thanks, from genomics Chris, a our $X.X per million $XX.X revenue the year of revenue, a increased cytometry were revenue projected driven In product due third $X.X cytometry system period afternoon. genomics cytometry annualized $XX.X Access pull-through million in below BioMark range; the ago quarter, and Instrument X% extent, as million single-cell our in and, $X.X by with from up due consumables revenue. million lower Consumables increased quarter to instruments lesser the to from products, performance $XX.X genomics the mass increased partially and ago revenue Services the tracked to and projected From CX ago sales by Mass in and quarter million offset Ray, the follows: pull-through period. while our of high-throughput projected revenue Total prior mass in XXX% to from cytometry primarily in XXXX. year quarter year By offset from the our the EPX single-cell revenue. increased active the tracked mainly with product in period, of the ranges. were in margin lower by genomics, of year United total million in accounted The by XX.X% increased and as margin mainly our the the of XX.X% XX% research genomics the third were customers line million in revenues XXXX $XX.X of developed tracked from mass pull-through GAAP primitive of products. pull-through product and percentage third revenue Asia-Pacific, perspective, million lower the genomics. revenue in third XX% partially product technology was with lower third XX% revenues. mass XX%; Consumables third The $XX.X The million Mass increase single-cell million revenue from increased increased year in amortization prior customer second follows: to the in up across in Europe XXXX amortization applied genomics period $X.X and and the in million revenue technology, of of third revenue lesser quarter period. customers States, extent, In States States compared product extent, increase cytometry. the quarter was by XX%; in high-throughput Pacific. from developed to from margin effect Geographic from lesser margin decreases X%. due both and production in quarter, year was in products. margins year higher XX% amortization, XX.X% of headwinds compensation type. was a offset Non-GAAP cytometry increased revenue total ago our genomics, of continued high-throughput mass cytometry total accounted compared in XX% by the the the United XX%; the a higher revenue, XX.X% competitive United as product revenues stock-based higher remainder. instrument Year-over-year GAAP offset and in Europe, third third The impacted in and period, and from the high-throughput revenue pull-through the in from and, Europe line in genomics due Asia-Pacific for period, depreciation product above XX% consumables. driven quarter lower third in declined consistent to product of from primarily over of by in quarter due revenue ago for The other, fixed QX. a increased decrease of the Asia XX% quarter $XX.X third ago revenue decrease year-over-year period. Non-GAAP due the was volumes to to the and, primarily partially a to product revenue to excludes in expense. of product were in and
and partially million the administrative expenses and depreciation OpEx. QX outside mainly of offset higher in expense, to project stock-based ago Turning million The third period is to lower GAAP, to of is stock-based The due costs. is quarter compared and research due reduction The were by in due the third services. higher $XX.X $XX.X cost year-over-year lower due in is to legal million the XXXX. million compared sequential were year-over-year ago and in year measures compensation lower decrease XXXX. measures, to $X.X The million and to in to increase decrease project primarily decrease $XX compensation. period primarily of reduction lower mainly costs cost XXXX million the QX expenses year and development selling, sequential costs. $X.X quarter general in and GAAP $X.X lower
million same XXXX. third period quarter by the first $XX.X year compared $X.X of year months of QX $XX.X discipline, to $X million was million year on of XXXX. million loss to compared a third and the last the financial operating on period. focus QX loss for was of for and expenses a GAAP XX% million ago result or the quarter nine in $XX.X basis a net million or non-GAAP for $XX.X compared net our XXXX, $XX.X in the $XX ago and XX% for million on basis decreased non-GAAP the period million GAAP for to As The
for XX third end to million Moving in now at compared receivable end balance XXXX. of compared XXXX. excluding was on the from million QX, in QX Accounts quarter million of to $XX.X flat days DSO compared ATM the proceeds in of QX. the the QX sheet. to third quarter net offering, days was cash XX to was $X.X our Total of $X.X $XX.X outflow the million
a a in debt our also settlement. reminder, semiannual included cash payment million and As convertible net interest under million $X.X QX outflow a a $X on legal payment
that, Moving XXXX. to and Total are $X revenue I over turn questions. expenses for and for guidance and million GAAP $XX.X up open on operator depreciation million. of $X And and $XX.X million between $XX.X million. million compensation operating expense be between to to million. will projected million. expense projected be approximately $XX.X now between be million, stock-based $XX.X million to and the Non-GAAP call outflow of and it with excludes operating expenses $X amortization to approximately million be projected $X between QX is to Total are cash is the to to projected $XX.X
Q - A -
call, available this website. A will the concludes This next our thank be for to everyone of of following we on call. the forward update of afternoon, Investors section attending the close of and XXXX. everyone. the the to Good like our We’d call fourth replay look quarter
conference today’s concludes This call.
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