FLDM - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standby and welcome to Fluidigm's Third Quarter 2019 Financial Results. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Ms. Investor President, Vice Lee, Relations. Agnes Please go ahead.

Agnes Lee

for Charlie. quarter XXXX you, the today financial Good XXXX. September the afternoon, third Fluidigm's market results its released to Welcome Fluidigm quarter earnings of ended XX, everyone. close Thank the conference At call.

During Presenting our and Jog, for our will Chris on will Fluidigm provide and our President review market Officer. Financial Linthwaite, Executive Chief Vikram commercial today our activity, trends we Officer; and strategic this commentary call, results recent business and Chief initiatives. be

the and potential the of expected cause and products cash collaborators, forward-looking market and including for or and business, for circumstances growth, pull-through revenue and strategic technologies, not During call may of to current uncertainties are we our various substantial that subsequent will positive results operational initiatives, for about and results risks events subject sales occurred introduced statements that trends the Q&A flow revenues, expectations. anticipated make guidance our prospects and yet plans session, for financial customers materially and operating expenses, from and opportunities. XXXX. projections about These Examples differ impact events fourth for consumables future recently statements to statements are actual and products quarter and include projected

any may by update forward-looking with are Fluidigm available this us December the ended is based to operating call on SEC. our on these statements Information year affecting other information disclaims currently forward-looking XXXX as Annual XX-K these risks as to law. be in and contained except our in results for filings on other information business and as and statements required uncertainties, the our and Report well The Form obligation XX,

and operating as basis. the information rules U.S. not call, reported the set company's GAAP. to understanding is under Non-GAAP non-GAAP information present a results of we a accounting only supplement financial and should be of comprehensive During prepared some on used also will under

encourage information found as in results consider to and section which presentations. under the supplemental our our a non-GAAP the in you our presented and between results of GAAP accompanying website. carefully be table these GAAP, release, We earnings are operating between can our Investors reconciliation non-GAAP well as Reconciliations

will call to CEO. our I President Chris, now the turn over and

Chris Linthwaite

Agnes. you, third joining Thank call. XXXX afternoon. Thank Good you our for quarter earnings

but deeply unit As million disappointed consumables $XX $XXX,XXX made in short results are placements in cytometry QX revenue We growth projections. progress million. you to the for expect, might mass which our our Americas in the we excellent guidance suspension range $XX below fell fell services and of of

encouraged expectations interest So we period, the remain in did not market achieve optimistic we our and solutions. by the our for broad

our sub-markets are of that significantly funding the to As prospects we equipment secure for analysis went longer quarter some certain we in observed through within academic particular results, purchasing. taking

this and this starting by Building on our perspectives going and primarily with overarching our extended address sales can followed issues As grants, capital on to and price money belt are our asking investigators more us [ph] tightening slows their is previously customer un-penetrated themes accounts. our category. investment we other few observation, that institutional on management. develop These cycle some for sources the sponsoring In our release are markets from impacting models return on products. for segments, instances elaborate to I'm help of in then

then First, the mass cytometry for business microfluidics. for and

adjustments confident can that are overcome we faced. make headwinds and we see, will we you As the

market. cytometry the First

parameter tissue good. for markets Across all protein generally and regions our is high cell underlying solutions remain and Market across healthy. major demand

similar market, has seeing As spending observed integrated outside but see be the that be most We the result, we have related we've ago. year. the institutions as compared the a major for appear been sales could better EMEA above fact evidenced recurring in In and our fairing services. the is we there into to scrutiny some capital cycles to strength $XXX,XXX to a and well-funded a revenue than by in a which consumables of grant bit of more dynamics year U.S. with a more extended streams account as cycles

last of particularly QX which APAC, gained Greater this in new progress for efforts, the demand opportunities a examples China remained our tweaks number we system action critical and U.S. of the immune both In strong selling commercial few to and then shortly. ongoing our and related globally encouraging of taking sales place anticipate providing initiated new our over With during particularly process QX. in in and We immuno-oncology and adaptation in better tools. We as marketing Americas gaps the leadership Japan assessment in and more the in months, segments. include are started These well quarter. approach a address of coverage, insights region as

full should and XXXX these The in benefit of produce actions beyond. results

critical CRL with better and for data for proof about segments both was wins highlighted large cytometry segments, pharma comprehensive customer particularly centers. centers, target points. customer Demand academic been centers talking and we've time strong. segment for medical academic On key us remain some like the large multiple biotech that cancer mass medical we've and the ones to in centers in cytometry mid-tier Progress CROs academic and

segment units. accounts of sold half have installed targeted We we in accounts U.S. more with many XX systems EMEA approaching this multiple have situations, in or the penetrated and the more and than largest

trending materially our increased expectations our and Consumables we trial clinical with participation. are in-line

these constraints demand investigators. demand for and the segment due to reticence extended sales and good capital to purchases very emerging We sales we advance primarily with progress. in We to from have placement commit opportunities of academics, cycles coverage have broader contrast, mid-tier and incremental In continued the are the institutions. of pleased new see from

segment site in investing is not alignment on facilitate Our we time and process. coverage this the as stakeholder we and not in believe enough strong to are progress purchasing

adjustments. and making our analyzed tactics We've are segment of the

biotech. prior. are looking organic offerings bias pharma is CRL service interesting differentiated Large markedly than build segment the the and CRO, Smaller towards the a established a is CROs a trial CROs Interest demand and on they category. on build outsourced anticipated build-out or commitments. capabilities, specialty before making very demand acquisition with to invest clinical based Moving year from higher

Our have major impact, accounts a in clinical favorable is trial is and we we large in nimble every traction if are there geography tactics. having opportunity a market our

organic at academic CRO unlike speed service believe priority. capital. Finally, therapeutic for focused a other this top partners for segment We via our versus ample of segment new labs. the in the their on is to biotech and the pharma there groups is The pipelines technology few more market build-out accessing near-term

discovery sub-segment pharma XX into work the more penetration required the and have across as groups lucrative biotech is their We groups Top the potentially market. of as good translational well but bridge to

our expansion success new addressing tools is of recent The and critical unmet menu needs.

solution. We have profiling penetrated more immune XXX our accounts with than

profiling along many innovation and released an placements. Initial end-to-end trials base our and suspension lines, new cytometry. these workflows These addresses key continue is CyTOF points. over-time of reorders. Our suite part pain larger unit provide first-in-class drive simple penetration of to in will leading enhanced that immune In product sampling our larger customer will we strategy, version clinical panels solutions are software, we

segments is proposition of critical accessibility especially robust, are broader interpretation is ease part and our experiment, we the a value targeting. is important Uptake post of new and data use to

metals revenue we technology new establishes as weeks end seven New customer released of simultaneously. new the metals, first release. analysis unlocked the the We panel sizes, installed our to resolution XX unlock per of of quarter, which us incremental These more in metal, protein the had first and base. from excellent platform than enhanced uptake signatures at high the system satisfaction larger

have of scheduled release in more development they and We for in metals first the half XXXX. are

performance. our analysis cytometry mass an to product Turning of

a high parameter capability methods. in cytometry simplifies parameter Our comparison market-leading to provide in solutions mass panel design other cytometry, high

multiplexed enables In cytometry high-plex addition, both highly other no imaging. suspension platform and

had at cytometry XXX the September, we XX that Imaging. installed for end mass As more than active are with enabled instruments of

been adoption Our points a to These of has year-to-date publications, platforms, mass been range our study through clinical demonstrated cytometry trials broader growth of Customer worldwide usage has phenomenal. customer and strong. imaging proof are diseases. instrument

there immunology, immuno-oncology with this using launch commercial point XXX more been there platforms. publications our function, publications And have publications are and been infectious its disease. in new Helios there mass using our platform. Year-to-date have cytometry XX since At concentrations immune than using XXX imaging

across meeting from saw by exciting technology. range disease We broad trials represents XX of since trials clinical XX% earlier and a clinical quarter ongoing imaging our At including enabled immuno-oncology. user this This are an our third data QX. in we in Zurich, new over work areas increase of translational annual group

brain traumatic as has cytometry the publish selected look opportunities as to their as these expansion for to beyond updates on We providing Injury, immuno-oncology research segment. user a results. so trials government clinical mass Imaging hospital in study they the we expand see In of the U.S. research well government forward

microfluidics microfluidics, lagged Turning the has the now of business the over year. to course our performance expectations

We is each call near-term new we navigate while on dependency a this of cytometry year from legacy the have concentrated narrative market discussed relatively a different microfluidics products, customers earnings in as commercialized. we mass the we group recently

competing proposition. our markets of unique approach we grow antibody but quarter. opportunities platform in have genomics platforms. for to a unique as well believe take use somewhat digits to traditional value genomic prior relative from some our market our The market collecting products a genomics hybrid PCR from technologies We to is The unchanged power and continues as proteomic is offers health broad the detection protein mid-single solutions information The as microfluidics novel provide share increasing approach. we

broad activities research the sub-segment. and reference CRLs segments With we terms on and customer CRLs. Ag-Bio, academic see labs, biopharma range of a legacy contract our Ag-Bio, and growing In fastest including customers representing academic, concentrated and

These customers reduction increase and cost sample prioritize throughput.

can service are incremental areas. helpful they addition, business. We lines developing in very new be attract to these In

technology compared for at reflects of loss base of portion business. underperformance that the a significant of QX Chinese CRL year shifted a last Our their platforms to revenue

in solutions our and softness weakness see on reduce legacy to strong the some from provider. proteomic offset leading segment, selling can incremental a focused Ag-Bio, on to continue more drive dependency customers. We With of sales we CRO we this revenue

We've commercial in area to heft this traction. more added generate

terms R&D updates are green we our seeing of product In shoots programs. from

meeting We in new Prep Library at we the sales pipeline The and Houston. for events geographies have RNA-Seq customer ASHG well-attended NGS impressive all our a with showcase initial solution. an product in

systems just million opportunity Juno opportunities. and for after new than more Our six funnel continues daily, have to weeks, grow, we kits and $X and

commercial into sales strategies. for and to headed $XXX,XXX I and and interest in of increased drive look moving the demand pull direction I of partnerships. products we $XXX,XXX with these QX instrument execution more stimulate the new in project We forward and attract acceleration updates on confident to are XXXX. These for through, new am right range should the initiatives providing market

the turn over now CFO review results. our of a Vikram, our I'll complete financial call to for

Vikram Jog

Chris, a decrease and $XX.X afternoon. $XX.X period. Mass Total to minimal year-to-date the exchange X% year-to-date had impact XXXX basis Changes and a QX, a rates revenues decreased foreign X% by quarter cytometry negatively the million year-over-year. XXXX. revenue of impacted revenues for Thanks, X.X% the in grew million good net in third in On was quarter on revenue of million in XX% $XX.X revenue for third XXXX year-over-year. of

mass As year-over-year remember the to you consumables decline strong QX primarily States, due increase revenues and and service significant in was cytometry revenue sequential cytometry of in in offset by mass experienced lower The between instrument a United revenues. growth may revenue, XXXX. QX

quarter, instrument cytometry cytometry longer similar in-line We revenue. has in total due to mass mass Year-to-date continue instrument growth in year-to-date orders to mass growth third cytometry the cycles. primarily in to with previous strong been delays the sales the quarter experience

profiling was represented strong units a And the of XXXX. incremental revenue quarter Mass from end revenue launched the cytometry including in of at solid service quarter, delivered over growth that customers. Maxpar year-over-year existing our direct-immune consumables our placements growth third to and this third March instrument double-digit assay

for in-line the also QX We our was mid-September. with XXXX in metals good that orders third saw below pull for new a still guidance. were but kits Consumables labeling through initial quarter in seven launched

service in in growth the quarter. notably revenue Also strong we had

cytometry key year-over-year during mass driven product in guidance account as close a decreased range we through sales. instrument X% We fourth saw Microfluidics by microfluidics strong ramp-up usage quarter of the different our and their revenue new performance a decline a top quarter. account We instruments. XXXX pull $XX.X customers of very to expect a to key signed be the of in CRO for from million

good As mentioned, initial its Chris a a had to the in RNA-seq mid-September small uptake, it but has quarter, contributor XXXX. was launch given

customers. Consequently, is revenue. revenue significant a small number microfluidics variability consumables continue to As a microfluidics reminder, quarter-over-quarter we a of in tied our portion of to expect

the strategy key a we execute new to accounts our We focus are new applications. beginning to with as and RNA-seq grow on on for develop pipeline good business

QX, our systems Consumables instrument continue slightly pull-through but our guidance be for microfluidics in ranges. to than were higher lower than

to consumables and to EMEA mass XXXX compared now offset perspective X% microfluidics sales. overall by revenues, lower regional revenue to cytometry Turning partially instrument higher million, by primarily $X.X QX, a grew driven service

Foreign Similar on $XX.X Without of X% negative significantly higher sales. EMEA exchange that quarter impact percentage cytometry XX% million through our higher than to $XX,XXX mass Americas to guidance instruments rates pull mass pull by in revenue mass a third revenues. QX, Americas cytometry grew point offset primarily sales $XX,XXX. of lower XXXX and was consumables cytometry service through range worldwide the to by year-on-year. had driven impact X declined negative partially consumables

million, lower instrument declined sales partially X% by higher $X.X and by microfluidic driven sales. offset revenue mass service to cytometry Asia-Pacific primarily

impacted by strong quarter third year. a last was in comparison very Asia-Pacific, This

and XX%. continues business has to Asia-Pacific Our perform year-to-date well grown

of QX, to capacity due lower primarily margins XXXX. the Moving our Non-GAAP performance. XX% partially GAAP XX.X% third in second and lower in in product ago of on XX.X% XXXX, mix. was favorable gross period was year-ago margin to now quarter compared a both offset margin the gross XXXX. XX.X% operating inventories, quarter production gross non-GAAP year-over-year was in year third the in utilization, and reserve in decrease period in compared margin excess XX.X% for by and to to the The quarter the service

X% in the revenue. expenses was XXXX expenses primarily $XX.X lower In over primarily in by basis decrease The sequential to the operating a margin margin decreases non-GAAP year-over-year coupled due X% on offset GAAP a basis million. $XX.X increase lower excess with year-over-year the of stock-based mix the compensation variable GAAP GAAP gross year-over-year million quarter inventory was and decreased to third case and increased product the on partially reserve. gross to to Operating higher fixed in non-GAAP were accruals. unfavorable compensation due amortization Sequentially, and approximately

lower in offset QX, net driven loss was period, gross versus for XXXX year-ago the driven press are between loss million loss $X.X expense, for period The was decrease net bonus a and primarily lower The million the to XXXX. by today. profit. by related by expenses $XX.X to expenses. third year-over-year GAAP provided due million net of $XX.X $X.X for absence GAAP was quarter by the driven million year-end non-GAAP The $XX.X The by tables lower primarily offset at issued Reconciliation gross was program year GAAP partially profit. primarily offset that ended in in million of XXXX. for non-GAAP the operating quarter compared same QX was retention last measures the that at the to operating in by to loss our expense expenses compared earnings third profit net decrease gross interest our lower operating lower and decrease release non-GAAP end was lower earlier

cash $XX.X to and Now $XX third of end million balance were the on the at of the Accounts quarter flow. moving million the XXXX. quarter end compared second receivable the of at to sheet

of decrease available payment sale a in million, including This of approximately $XXX,XXX. restricted readily for a DSO XXXX XXXX the was the to the quarter. of million compared $XX.X the totaled semi-annual cash short-term end million restricted and of end are quarter million XX-days interest that at of end third compares including XX-days the of to at investments cash. and second $X.X at of cash $XX.X investments, QX, short-term end quarter Cash $X.X million the of at equivalents, the $XX.X of second and net

$X non-GAAP million of facility of amortization million. At million GAAP quarter under total be excluding to stock-based of to borrowing QX, $XX approximately $XX fourth to be our and million, $XX $X guidance revolving operating on $XX to projected the base million, was finally to are of asset credit base and million the and was And to $XX expenses approximately end be of none million, $X which is million. expenses projected million projected revenue expense are utilized. depreciation $XX compensation XXXX, operating between the for

million Total $X fourth $X million cash outflow and is quarter projected to for XXXX. between be of the

cash and for payroll in XXXX increases little taxes. approximately total annual of expect outflow payment quarter be semi-annual our convertible the higher fourth first the outflow primarily a be We projected driven debt our by to payments than $XXX,XXX of quarter, on in bonus interest

to is of is that and payments bonus XXXX in to expected as QX interest included QX, be bonus retention and outflow high cash which expected not payment QX, a However, recur as not higher in XXXX. XXXX, in

And call remarks. to back Chris the I turn for that, will with closing

Chris Linthwaite

We we are We driving must the Thank the improve the in strategy you, growing. have market commercial and execution the is on in Overall, we taken execute new our and targeting. to well cytometry Vikram. in mass period innovation agility business of forward segments market expansion. steps our response feedback

customer and we microfluidics consumables, must we from Success the growth. excellent platform. For headroom instruments enterprise are world our uptake and work see for the all mass opportunities two and revenue contracts. our we vectors ourselves wide funnel our of In growth and growing three of and seeing increasing on service of our drive for clinical are signing dynamics legacy close of for untethered business. we Adoptions yearlong will installed is up as our around summary, these base, workflows trial well for as cytometry

perspective, investor expand revenue have From up are already in Americas franchise. scaling that I discipline efforts operational more our on adoption, executing maintaining in more sizable Yes, to instrument Fluidigm we growth suspension I more we financial while strategy do our the but absolutely and demonstrating selling innovation deliver while to team improvements. work microfluidics management and an we are ability confident to cytometry know but asking mass remain and patients for

activities long-term will growth These tremendous drive and sustained value.

over need in their We employees portfolio. parallel quarter on our a launches contributions a this for past thank across I always, number now launches our As revenue we in new delivered these XXX convert of significant to as meaningful product streams.

today are when three than arrived. years We ago I healthier

your we gains major growing updates we healthcare shifting the expectations from a and have confident, vision success, and healthcare of are are to quarterly aspirations on longer-term our along Our are impact going with to research. increased

line the like I'd questions. that, open to With for

Operator

comes from Nam first Instructions] Sung question [Operator line BTIG. Our the with Ji of

open. Your line is now

Sung Ji Nam

starting with existing you seeing RNA-seq talked be Kit the certain greater split thanks launched of Prep interested? my also, customers curious, for Maybe funnel regions that between kind then you're customers and demand seeing questions. where the out your taking there, out you Library new about was are versus might Hi, are there demand globally, that guys the nicely what's building

Chris Linthwaite

very for you Thank the question much Ji. Sung

development pipeline that with in regards placements as overall, other so the already of maybe heavy we're the won't development for as although sales that in our market major sits extremely exceeds more in we with U.S., in funnel Americas early the why and now So in prioritize regions all we've no into RNA-seq of prepared yes, early now had is the we kits into a comments, comments stated that the first geographies. skewing there expand that $X see than that the a geographic reason we few perspective, in market to million. pleased From of did weeks, so activities more

balance the moment at market. the right the I of it's funnel days, is early this biased think towards more So American but

for a we from the total so overall new microfluidics this next-generation about, think in recall small significant sequencing. we're market may you I for that share plugging of as have actually to market addressable a relatively and next number genomics compared generation as of we seeing it's customers talked to sequencing, mix customers new a

we this terms through. strong to going well opportunities incremental So significant over pull new as think time consumables is Juno of represent a in placements as

Sung Ji Nam

also might you mass options platforms was curious, are play in obviously be not delays platform talked taking cetera about any there from competitive the or customers alternative just there? other decisions, suspension seeing et recognizing on longer competitors direct to dynamics And evaluate just are then side, terms the there purchasing of there given potentially cytometry at out

Chris Linthwaite

to our last of the of I more From quarters the few a capital in seen obviously related think in the have a $XXX,XXX dynamics scrutiny comment relates and prepared remarks, question in suspension to above as equipment and made of mark. expenses suspension we particular a we the or investments kind - above shift

the other coming we've to seeing similar different as kind of providers, been are there in be their points instrument similar other out, print placements. it overall categories, think of price but I dynamics be, reflecting seems may on some that analytical maybe some in

across competitive it area of more versus influences. I we general higher all scrutiny to overall attribute this spend So the think can categories direct in of

Sung Ji Nam

demand curious then And be? versus guess, based as out are cytometry platform. Where well the ahead I kind you the of on as might lastly, just forward the demand publications see do of that the imaging going looking coming where between suspension the customer greater was kind

Chris Linthwaite

on which asked to and what are quite is So, and guess that over publications. question you still by supposing you reject your mean customer the how follow Did or be markets application that larger couldn't exactly segment? markets being are questions time or against I I going

Sung Ji Nam

just terms are getting types potential for in research of funded I in the just in the growth and applications future etcetera terms versus customer imaging? interest, of projects of suspension that driving Yes, guess

Chris Linthwaite

contrast. I it's think a

more those or as do we've now to into 'XXs we highly pushed of into up purveyor ourselves all much mid when analysis the established the know, sharing our So potential expanded may suspension as parameters established a it's more of discovery side, market is and a What XX reflect or first of much we've XX based principle early an than in much evolution suspension proof of from analysis, you early multiplex of was and market. suspension to competitiveness enabling larger that and as parameters. XX in a tool kind that our more simultaneous sort growing the unlocking cytometry you based the been and

of a that both lower larger of some shift - that. growing segment participating shifting are a higher the we we probably market for markets the towards high single-digit all are lower parameter in a analysis believe fastest and probably cytometry from market - debt also grower overall, cytometry is dollars faster the we measurements more driving we're a As the parameter,

in dynamics. researchers new think opportunity Imaging a of see of this units. in very So reflects as years on of well is newer publications XX also a there that additional being the to market clinical commercial in is favor established the as and enter our towards larger overall this or demand beyond by and three ago. with flexing moving the both were number so for share publications well trials more as us extends dynamics first I higher installed and plenty it's market penetration from certainly our base already We're the take are we the the pleased larger market expands to the and player market now our mid-flex more base, established installed in larger, as market market shared which terms our momentum

So it's early I days. very think

it a hot detection. and our at primary many very, big they're least perspective from see we will years. drivers and on here. D&A RNA grow a time the specialty protein incredibly it as or adapt interest to prepared of the in coming focus what could for all just be immuno-oncology right the imaging now from The broad influence are market perspective. think to the are of grow on very that in There more imaging grow on, will but will us need for dimension, opportunities simultaneous scientific dynamics oncology primary I we and it be mover segments more demand both first parameters, so other as market because very and It's versus versus will

Sung Ji Nam

Great, thank you.

Operator

Your next of question line comes with Dan UBS. from the Brennan

is open. Your line now

Dan Brennan

to Thanks one Chris's heard cited haven't we taking maybe others have but mentioned for on first cytometry, pressure some mass of it kind I questions. just the is some, the know you I guess, CapEx broadly. Great. on

expected? can shortfall you what the than guess points may a indicates share at market data basically be you So I that smaller opportunities is

Chris Linthwaite

try So, I I guess if to to I'm question. sure the going understand make

say the think market addressable period? in what that trying the I So overall the you're shrunk to market

Dan Brennan

whatever of just your you towards look possibly like basically a color wondering, I'm yes, kind that no or kind opportunity the placement speak you at No, something expected the line, as big just visibility opportunity on as kind goal commercial there? of funding of us isn't or to, funnel that over is that some backlog that and anything in just maybe as placement maybe but give might the to basis the and you of lack demand can getting this

Chris Linthwaite

by we think across know at I at mean break to-date not I look sizing, don't out I need the we segments we have to and market size each unit least placements. of market

centers as occur think continue radiate a extremely those I the accounts. that area in that still we've marketplace. centers to larger I that inside placements and good unit of we're medical penetration the relatively academic In small in percentage in the the we total had of number commented, of

users placements. inside we're dynamics, more instrument getting consumables meaning that strong those more see attracting institutions will and We more and

size smaller means spend a that potential. in mid-tier were the and some that through more shifting saw down intensity segments. market of market centers. where we're we further we're required. we is as medical that either centers I part of or In don't between just are challenges inside to to little know the in We're need the unlock funnel CRL some focus academic that going the to area points That's the an from to the to at is we top area take that accounts those we an full and medical trying to have than moving think that the that if proof academic compare richest of CRO more longer are we them bit combination

I think new this us. for is

toehold we've area, very at term market the in of placements this beyond I moving but been but over that major largest the moment. one single there segments initial significant think unit groups. of the And as some only in is probably then each a pharma segment geographies of biotech seeing have discovery we we're So long the those the amount trickle in a into the potential,

inhibiting We meaning speed answer, haven't trying providers already a have want the them to seen to segment to place already market. the CRO penetrated service system and in adequately ability today because we to participate that towards in there have to in our that are drive they penetrated and that's an rough dollars a declining deep the get fully and biotech pharma available fully

through of placement series unit So opportunities I of more into to segments. get there's think gates to plenty there, to got those get the out work larger ourselves but addressable we've

Dan Brennan

Got And it. then to for thank you it. maybe Great, related that.

So can line any on color indicated us or But share demand need that's funnel of yet over remarks? to funding kind or that you metrics get the in towards a might point there. prepared of give you as goal kind of any the the the view you backlog kind

Chris Linthwaite

have moved seen we enough stage finish substantive haven't have interest the backlog kind diminishment the is funnel. gate don't at be I'll least as seen awards related What deals demand the and technology. will in in perspective, or from it that obviously clearly sitting the share do periods in seen to in for in our offset in not quantitative course some not the we to you prior across process our line. of us Overall, or period a try a have What easier We give of some our backlog, forecast qualitative. we'll to information significant opportunity backlog is had for we've of

funnel size get need to need to more order add into in opportunities deliver period-to-period. we yield overall of need more sustained we dramatically to order to So through a but get growth or the continue funnel we expand in to we the the there, the

are talked about some we I also those think we there's with So tweaks some over some some terms do. like even coverage can cases hurdles There model over across or things of our some we've that get some the get at accounts. are tweaking obstacles in that seen proposition. help those of of value to In top

make to And get of can think significant course, out there's yield we enough which or we'd key then a more got we in do. if we that the it. more leads, our to larger opportunity trying as well love to yield opportunities additional I of marketing as we're things sure segments a we operations generate overall, we perhaps So see unlock. need that enough in to We've coverage to a salespeople get mean will at need funnel, of get that these more be help can large more funnel few

hope substantive unfortunately, So, going to The that backlog. qualitative able perspective. I'm not share of kind details funnel helps from to I be a that on

Dan Brennan

it's then kind And that comment, related the point to so sounds few or made tweaks right. it to just if of All said you a really then, salespeople. you sorry comments ask like be add this at

expected? you lot number people have really to there just I'm or of sales of are to of go-to-market either the X than kind new discounting. a more attack maybe more new strategy wondering a plan where plan, to market, So in have isn't this evolution that slowed yet or commercial your you seems like

Chris Linthwaite

little in Well, what the step a been cases in I'd and particular. it's, probably lean run I we've in terms is, rate of we say too think here in I think in that the Americas, coverage limiting have some and

And to other world. other the around vis-a-vis and yield so I regions the leading we're think regions the customer in think in at I that particular, more seeing more edge the of in we're new that's U.S. the why segments, unlocking

divide occurring also so we was in in our in the terms microfluidics, already a we clear of started didn't we've to area, in scale clear winner So We going going up new with work that's gives it's as that's and microfluidics drive mass can think QX shift, wait. to another have interrelated we modest be both group, more have think of effectiveness cytometry clearly in efforts somewhat this resources will one area. that a group that that for started more this going we It's segments. our on can on I sub work confidence product we kind us and clearly to

quarter. this actually underway already into those efforts we have So been with

Dan Brennan

instrument million wondering million baking one quarter, just kind be, what's and it $XX give revenue this you're through And I'm quarter. on placements the maybe shortfall for of into us in break baked kind that down pull just what last would some of in you the $XX outlook? color could given fourth either then

Chris Linthwaite

commentary comments, as pull-through. on some I shared Well, we, his Vikram in prepared think

head mass to anything go up regards towards cytometry So you the saying. not I through of he other mouth there? think and range we for clear guided that made sure color will the am I take pull second out Do on comments think I think to he end for of words with a microfluidics nearly want area will but be and that he to off range generally of our his the entering

Vikram Jog

in from in would don't which that pointed is We the repeated think that but the growth expect to revenues also time to to on volatility we cytometry the safe to our business, the see developing, related we RNA-seq. have new is get Dan. increase number be do sequential but again to the definitely it to recovery on this given implied normally in pipeline expect Yes, given say traction the microfluidics mass and We we subject RNA-seq down guidance I that until break we've QX we applications. caution QX

to in So year, safe the and we in through that the cytometry QX. qualitatively, guidance the do would also for and expect comments albeit to I had terms, be made that mass in that pull reach recovery at it in end bakes think, guidance say the we've on outlined we generic QX -

Dan Brennan

okay. Okay,

Vikram Jog

some you baked what's the color guidance. into gives That QX on

Dan Brennan

you. thank Great,

Operator

Quirk of from Instructions] next Bill with question Jaffray. the line [Operator comes Piper Your

Your line open. is now

Bill Quirk

funnel, I mentioned couple about had strong. you Great. guess afternoon. the Dan we a of on the order go the first XQ the question funnel to I was Chris, Thanks, about think I when was want call talking quite really guess to good and that back

time like the this to want so, at presumably going didn't close third that of it's it in hand commit the doesn't seemingly you some comments, I quite to ties that but necessarily the deals originally actually push but earlier like think and and expected in fourth in some that look coming I your a with quarter. were it for out to fruition for seems quarter, guys appreciate to in to second the be

and some any So prepared fallen us you it in with maybe unpack if additional help the everything you kind can funnel help Thanks. but has what is wayside still the think to of there? if your color by do everything give comments, said just about us in is that

Chris Linthwaite

Thanks for the Sure, question. Bill.

in best amplifying represent which the sequential - we So Vikram of is just QX, said, sequential in can do into help we improvement placements I Vikram in placements. from will was unit a this QX also see think unit improvement terms QX on as

funds would saw where lot with uncertainty couple out in that of a easiest kind So your I had out a about the which going coming they come are the timing from would I understand that QX QX at the QX we sentiment as the of quarter. for was come that sources qualify play fell uncertainty deals that the we think to stated had of placements into of I of reality, unit see through and the question, have of the but QX. we fundings step-up of guess we way to a in in throughout of to end in the

built were clearly QX on those consensus our And so model for or incorrect we model our modeling a hitting best of we percentage to our when in guidance to we assumption. handicap and QX built our did

we've the done as lessons QX, QX the can overall we our kind we best handicapped think to best as revisit in far of our for done from and funnel. So we've

federal on we're here that a even it it's and of I situations through mean it's they're of released we through number the saying don't is money or when release a actually stage still until these being point had and we PIs we about should really size, this through playing into the the and think PO doesn't the see out kind the it and in administration time clear coming, coming sure but come don't what or funding a of those where stating gates we not check see of sorts QX still this it's in there waiting leases didn't and XX% quarter. we out hand the to a we're question and see occur we're maybe size, progression not come of

know this. and say then look funnel to don't can is we size I to losses I direct assumptions at period in some the re-amplify modeling not QX as seeing and lessons So, our We upon tried that Vikram see we're based we lessons a just to our experience. tried from what make best learned learned competitive said attributing significant

we've forecasting will trouble I, larger do having place, been this when going it's, snap to orders these expect into land. are that we're, So, I but but

Bill Quirk

traditional taking case up? outside of as cytometry into kind that at you're kind deals some mass the is guys is of of it in and side we to think with your of from something Chris, you that mass timing Thanks. academia all you at closing are looking uncertainty landscape should outside base traditional do parties these of interest contributing if of consideration, the of early interest interest indications your that's and how say and customer the

Chris Linthwaite

point lead less to high-end focus on they have a more really, established our fill patterns seen medical as have and is that insightful shift I capacity think actually they those and we need Yes, in then centers, order. really academic and to up next overall, think focus we question, Bill I the call dynamics, because

some back perhaps the that doing are, And didn't going reflect segments development and more and makers other considerations selling we're and making decision activities. those The think all technology segments. decisions our business I on to segments be I of even those fully that involved in come other we're to the into used motions

to color this break gave of more the what we out was out of tried in of some little reason break that part I tried call, think insights. a those a And I why to I as flavor segments might, out read since them break for more that to into markets a you've We're commission. in you little trying it. of one putting as And on a on color altogether you. them

tactics segments. these one are been having shifting each our of And tactics our on in that work shifting these learnings we We started already segments. we've

Bill Quirk

it. got two, Okay, And think me. quick then from ones pretty I

the about range press First release in models respect And to in based it the installed sure microfluidics. to make can the inventory on secondly, with to want the as systems Thanks. elaborate comment in active is quarter my Vikram mass you possible? decommissioned accurate make sure that then cytometry took the reserve just as I you

Vikram Jog

base an look on back always me have a first, let take based purchases so Yes, and second a measurement attachment active period. over question certain we the service

but how model that systems are are so units not base active we certainly base it a a updating went can't we your two constantly on you're definition. there we in of in our that itself, refreshing with terms I and metrics. those quarter on but And XXXX many of based - ongoing disclosed is that the of, that's to delta based the phenomenon, active has the played an role today, the to trying reconcile active if netting placed in speak the

Bill Quirk

comment Okay, the just inventory got reserve Vikram? it. on a you. And then Thank

Vikram Jog

significant point through percentage nothing explanations. gross an three accounting amount, I reserve, realizability percentage and was that played among the a but we were on is it delta every point go one is X role quarter to in the valuation Yes, it roughly X.X in the profit, but the explain judgment trying to the but mean of exercise, a we that's on it and wasn't that based inventory

think capacity I utilization mix. bigger product were the and production ones

Bill Quirk

got you. it. Thank Okay,

Operator

no will further Lee. have time, I at question ahead. turn the call back to Please now We this Agnes Ms. go

Agnes Lee

available section everyone reach thank to are today. call to A forward call. We'd update the next of call to concludes the This questions. the Charlie, evening, the close following us, our XXXX. fourth the close Charlie. everyone. there now if for look on website. of like you be and Please replay may you, of the Thank the out our we Good quarter of will further attending call Investors

Operator

this conference. your you Thank today's for Ladies ma'am. gentlemen, Thank and participation. you, concludes

disconnect. now may You

Standard BioTools (LAB) 5 Nov 192019 Q3 Earnings call transcript