FLDM - Earnings call transcript Q3 2020

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Operator

Thank you for standing by, and welcome to the Fluidigm Third Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today Ms. Lee. Agnes you. Thank ahead. Please go

Agnes Lee

the Rosanne. Quarter Good of to you, results everyone. market XX, afternoon, Earnings Conference Third for financial XXXX its close Fluidigm Fluidigm's ended Call. September today, XXXX. Thank released Welcome quarter At the the

call, response our results CEO; we today pandemic. for to our the commentary and strategic trends, will review our performance, CFO. Jog, Linthwaite, Vikram Fluidigm and operational COVID-XX and and market will our be initiatives this provide on During financial and President Chris our Presenting

forward-looking to the and statements, other these be Form with on results our uncertainties well for SEC. forward-looking obligation various During and forward-looking other business Information initiatives, expected cause the may our market and in prospects including available XXXX, and plans, business, revenue XX, circumstances and impact are performance, events market financial differ product XX-K research not call ended to subject will results by as law. may is customers uncertainties and strategic any for actual operating expectations. competition, annual our and These research positive as and subsequent Q&A about and results risks occurred, to from operational statements that on materially Fluidigm trends, the this substantial us potential the filings session, and information our anticipated collaborators, current we on based and or yet required trends, technologies, report and plans make and that for customer risks statements financial and technology and opportunities. projections about our growth, Examples The demand. as funding these statements to and events development affecting in future December statements information are except markets, currently trends contained disclaims year have update in products call and of include

as of and website. also supplemental our the between earnings CEO. and results to used our which information supplement presentations. will results a consider call over GAAP only under non-GAAP rules our accounting on non-GAAP you be well Investors accompanying GAAP We as carefully present results some financial set operating we between table I are GAAP. an basis. can under the under the U.S. as to reported turn now these Non-GAAP be prepared should and company's non-GAAP not in comprehensive President reconciliation is the During the call, encourage will information of information of understanding to found and our the our Reconciliations section in presented operating Chris, release, a

Chris Linthwaite

afternoon. impacted has Good and ongoing execution. every as driven global of well our speed as Agnes. The you, crisp a facet business pandemic for need Thank has

serve needs the employees' values, on occasion innovation, I proud focused a focus relentless this passion entire including our and COVID the urgent a operations, to of disciplined and delivered of market to results. deployment reflective capital community a commitment Our Fluidigm through am addressing for manner safety, crisis. rising team plan our in a in shared the has

a a in of groundbreaking a August. single-site of suggest validated in kitted for be development. will be test PCR years days, emergency class response. for more. we the pathogen, in year-to-date fronts. -- the scale-up multi-site these phase tests We safe few this manufacturing total my kit details customer on unfortunate to shift tools more powered from of students labs SARS-CoV-X critical historically ago, Vikram stakeholders. awardee financial little detecting in are a saliva-based production the education, a crisis. released imaging clinical bringing many with to number results down Healthvana, to as input. COVID-XX the being from contract with an future. healthcare four more will into the normally tackled new CEO IT further use and platform We COVID few major I or In studies a innovative to has in mandate address XX RADx and has tests is implications global patients received in became Biomark believe in a the role we the the to extraction-free year-to-date. the almost health awareness health group first for an product general-purpose segment Safeguard response a trials in showcasing combining XX placed three their play in the Program, navigating next system authorization staff Campus and playing three more over systems on of results Healthvana are operating years across opportunity well testing multiple leading enabled We and $XX color play than break throughput towards a CROs million These better We Biomarks data span earmarked We delivered integrating role like environment, company strategic and role add new receive ahead We pandemic labs and serve base the quarter, for provider. research our Since to NIH to announced test a Fluidigm I'd the humbled accomplishments or key coming to best-in-class to our new quarter of provider, of year market-oriented accomplished both ramp our goals a for in including a FDA helped of a meaningful been minutes, first the in diagnostics million increasing challenging solutions to mobile authorized increasingly but linked to helping XX delivering push for trials vision, or XXX,XXX test bit immune a sample customers XXX needs. patients market to keep since in installed large XX, poised of We can higher multiple broadening product established partnerships with accounts the quarter total with as and for events majority We the complex platform and detection a solution the end secured which more have of clinical XXXX late a We program complete. the ongoing decoding minimal trials virus our quarters. The and brand April. to

last steadily, instrument have clinical in great technology, commercial testing have molecular academia nimble recurring the We few over been revenue in well streams labs. and we and settings determined as towards culture. from And quarterly research translational years, a placements resilient, as shifting

cutting-edge We new into research, an are move entering these customers, insights who with high-value adding deployment. larger conduct intent to broad markets and

New over partnerships announcements are the critical in also our XX success months. to our they are last and reflected

crisis seeing importance and to and accurate scientific with clinics We insights solutions kinds efficient on critical robust the thesis provide the future around requires health understanding strategic to We care immunome, these hospital of personnel. assets of in of understanding area value pathogen profiling. that last detection virus of was and this the care a the The we strategy. containment expect bulk-cells With being impact management hold COVID-XX pivot. diseases. and deeper years, actively are for the announcements huge SARS-CoV-X solutions a the that pandemic, built many this health new health of patient of tissue health accompanying standards illustrates used we we drive create promise beds, as that immune across an more those Early care and execute and aligned on to is as the the into future. investment the the two deployment care such to In single-cells,

the solution flexibility flexibility new add decision-making that critical operational our beyond downscale pathogen to virus, throughput multiple and diagnostics. markets or segments Biomark or based the Our combines environmental platform This needs. market information including points upscale data provides strains covers the to detect on

technology we as well in will ahead be dynamic in the as the platform robust done for well flourish. testing diagnostics the might commentary Biomark workflows nimble as coming XXXX, while presence menu, as and for providing new evolve market bar-coded XXXX. development Our test markets next-generation to and will a regulated an products as of execution-oriented details around more competitive and products in companies expand extend and array future. how earmarked years. partnerships envision new COVID that additional chips a months improve our leadership our in will have I will and release exciting midyear is our system These in landscape research the we will the not innovation testing throughput, focused expanded increase in we testing including perspective, the and assays on work From demand share be market COVID current

and front, our On platforms a impact. imaging have suspension COVID had the significant research cytometry mass

XX-marker year immune response Our Maxpar customized could has for for development be standard Direct a method in and analytical studies. package assessing panel stage a impactful response intervention novel second last for populations. measuring vaccine Immune infected provided programs immune suspension system platform with Profiling Assay The released a therapeutic

has on COVID-related imaging And by Insights Our several COVID providing Therapeutic studies triggered oriented Service our platform is infection. research. and executed response insights immune tissue on XX damage including

QX historical labs system an in product progress additional COVID-XX, although We prospects. anticipate general and most in continues In have well service launch the we OEM business with to have operating announced core beyond underway previously more horizon. levels. innovation consumables notable with cytometry partnership improvements our undisclosed business, year. we large Compared to at installations and in our We upticks mass next saw we discussions more not areas QX, are in a added orders our on collaboration and calls

to Xth the from In are a including attracted Summit an our XXXX Clearly alone Summit numbers are marketing our prospects events has Fluidigm events Cytometry we The Annual are lines as that of live channels, digital participants We to for the shift Mass QX XX% registrants trend from our shift competitors extremely about successful in-person also sales return reflect Cytometry emulate. become digital great saw who results trying including Mass to future. to to new with optimistic XXX asset contacts. organization a showcase nurture. These we events. historic digital self-identified our

of associated lockdowns regional alone predict XXXX. it However with outbreaks emergence let term and QX new or hard is the QX performance in in significant the to near

footprint new customers are and is a full we production our number mode. in Our not yet modest starting a in diagnostics from with shift of

are the testing in ramp-up volume. cautious So predicting we about

an shape in a of very the However, and we of including factors prospects our depending on research spending remain our expansion our growth future with of long-term space. confident diagnostic mix

the planning long-term with to are our been a incorporate strategy. background COVID to updating opportunities testing this of opportunity, have executing on we the relationships, customer tools significant expansion In believe the Turning surfaced longer-term new while and we the have we that have that and by powered including new new we to pandemic capacity. assets business We a have built, access microfluidics. of manufacturing discussion a diagnostics durable

we're addition, drive products pathology and mass sustained in executing content, suspension translational pipeline and franchises imaging on is cytometry feel markets. on instruments we future positioned new of for innovative strengthened well and by double-digit company, Across company the a the research our partnerships. growth stronger clinical are to In workflows growth. in including I footing

like Now a to discussion results. of for to our I'd transition detailed operating Vikram

Vikram Jog

to had revenue and million compared XXXX. revenue of on good exchange and compared million $XX.X ever XXXX revenue Product that $XX.X quarterly revenues. pleased highest XXXX. rates revenue foreign QX impact afternoon. Changes grew by to the was QX XX% in was I'm XX% Chris QX to in XXXX Fluidigm. Thanks recorded Total service QX note growth minimal

from global cytometry either as at estimated was mass or revenue our of with gradually base academic slower end million tailwinds saw business business. our $XX approximately COVID-XX tests in both of pace. XXXX In on With in revenue working XX, the customer community driving accelerate XX% labs second contributing in we XX% the growth revenues sequential quarter, EUA growth of from over microfluidics we for research reopened. strong third microfluidics August a saw At quarter, of test SARS-CoV-X grant the XX% that of the we the quarterly our our quarter had closed the to diagnostic and

estimated As a pace. XX% of our entered latter or QX reopened research our working we customers and still part we global closed had at the academic exited with an slower of of community most September

continues. both of resurgence Given in pace quarter Both of details mainly that and and experience third the $XX.X in quarter are With offset carefully instrument million into the recent reopening the which and headwinds States were to quarter. second X% lower Mass from third lockdowns pandemic I although the announced year-over-year considerably Europe mass at diminished in will cytometry consumables due we product revenue continued in watching move third quarter business higher the headwinds microfluidics-based the the Europe the these this cytometry revenues our to compared and performance. United our revenue. context decreased to service by of financial infections

to experience of delays and of half effects first sales. from the the continue closures constrained We form the of XXXX lab instrument in in orders

being some profiling sales year-over-year addition primarily studies. another In we to and Consumable related increased budget funding Profiling prioritized to Direct facing budgets activities. COVID-XX and our Maxpar for Immune immune COVID-XX constraints quarter are due sales record with for sequentially Assay

We of to the some COVID-XX the ordering of patterns returning their which seeing gradually offset completion are customers studies. consumables also pre-pandemic large profiling could

year-over-year revenue and whether by on instruments and XX% $XX.X labs to is levels operate testing consumables. both increased COVID-XX continue from revenue service this product the However at driven million normal throughout Microfluidics winter. of dependent

has instrument in We systems COVID-XX instruments placements requiring have time were XX now the labs. enabled As sold saw and QX. for set of to we validate in our Chris Many Biomarks EUA quarter strong new additional XX customers our these up in mentioned, placements with and testing. with their total

with end enabled programs validation to At testing. six are of systems four we quarter, for production estimate and the testing. their third patient We take were ramp before working the customers that achieve on these used of level actively approximately weeks customers weeks being XX% they average to

sales at driven related low our for order Most large ranging orders universities largely $X our During the sold test Safeguard EUA the in these per of third including of prices quarter range quarter the two to XXX,XXX assay. end $XX. on were we to Campus the ASP a Program. test tests was historically from from by

million, Product for performance year to our now driven increased revenue regional prior in by by Turning QX U.S. $X.X compared offset to XX% grant of XXXX to COVID-XX instrument and grew the development lower million microfluidics this revenue main The related $XX.X sales million COVID-XX the XXX% $XX.X revenue Americas revenue. the a revenue. were of service testing and including perspective, the higher mass quarter and cytometry to majority microfluidics period. drivers to license

sales revenue by higher cytometry was to Pacific to mass by $X.X Asia by project Microfluidics increased my declined exchange X% million lower commentary research revenue consumable non-COVID up instrument mass XX% spending. positive regions, impact and the To instrument and driven offsetting instrument in revenue COVID-XX the X% revenues. round EMEA by microfluidics revenues by a quarter, EMEA $X.X million in on offset slowdown and third microfluidics. a foreign revenues. rates on had cytometry driven driven

a included related and noted to million with grant for of reported QX. customer, revenue revenue and – to agreement $X.X agreement development I research license in we development associated development and supply related development $X.X with grant the of of earlier, revenue OEM a and an As This $X.X agreement. million $X.X and and customer revenue million -- million development supply of

second of end third and for revenue. million volumes higher quarter issued to impacted million year-over-year tables our in compared in for third fixed year. revenue note, revenue XX.X% an and the higher of loss the the XX.X% operating of quarter ago of Non-GAAP lower XX% the a between on product the lower other higher instruments million. now ago R&D was Product operating of year and instruments. quarter margin inventory costs, Operating a the non-GAAP margin period. non-GAAP in mass the reconciliation the product of provided partially exception second compensation XXXX. earlier increases the higher The the in due million $XX.X and expenses, year-over-year service year-over-year compared GAAP for expenses stock-based partially to subsidies. of due compared X% increase positively increased same XXXX offset higher higher were that and on was operating due margins income decrease in COVID-XX $X.X that was to loss pandemic-related in amortization of was by sales operating as basis mix consumables, over by performance. costs with prices year non-GAAP XXXX. revenue. travel, to expenses of GAAP XX.X% primarily increased expenses and primarily was GAAP offset due non-GAAP $XX.X period quarter The increase ago over operating was and litigation the by partially XXXX, the same product well increased by to Sequentially our and factors a basis reserves. GAAP the operating production and expenses in are XX.X% a XX.X% press $X.X from of measures both product offset primarily of GAAP quarter severance by year-ago expenses. to third impact Please increase of $XX.X quarter on was operating for earnings period was expenses These third GAAP lower COVID-XX period. government The expense. was at exception diagnostic consumables shows microfluidics The the fixed higher year-over-year and by gross to higher as third compared XXXX service The the increase margin XXXX sequentially drove non-GAAP lower to expenses of the for expenses third quarter and operating period today. GAAP the million was the due service basis and instruments. trade The a cytometry and partially with expenses. the same by resulted million diagnostics offset were and margin to was release Operating and to XX.X% sales $X.X year-over-year the foreign the compared margin last service XXXX margin Moving of service microfluidics loss to in that in for improvement mix compensation in quarter higher amortization margin in drivers GAAP year in facilities to in of

quarter to XXXX reflecting and cash million the cash on $XX.X $XX.X of cash of the balance increase at about of quarter equivalents, investments of Cash Moving of of net unspent from third stock and Cash milestone end and equity our compared to end a XXXX sheet. of now of included million of offering quarter the proceeds $XX.X an sales restricted short-term second flow XXXX, program net totaled and common the under $XX.X the in million third flow the million. under $XX at-the-market payments NIH contract. RADx million at

second Excluding these was of the our asset-based under sales in third to at items, which Accounts days increased quarter utilized. XX $XX of quarter. And the cash days to none $X.X quarter. the at of at base million credit burn was third revolving the the borrowing the end, outstanding million end end was quarter receivable days compared XX facility

annual surrounding pandemic. COVID-XX withdrawn in and our have the the evolving of We ongoing guidance light uncertainty

outlook such primarily in on help We expect products. little for time to become update growth attributable the bookings to the provide business XXXX at overall revenue, as We can thinking COVID-XX-related on investors our our guide year, October today. opportunities the To and as saw color effects revenue prior to microfluidics in of on we our compared clearer. a of pandemic

from to these our headwinds mass experience pandemic October, diminish. although cytometry business continuing microfluidics the to in are in continued Excluding base and these headwinds opportunities both

in we Ramp-up sales in the benefits strong mentioned testing significant saw in the The some remarks across around is the and in into for opportunity re-openings have these instruments microfluidics Chris installs consumable regions. Europe at we customers our increase lockdowns end quarters Asia-Pacific we expect uncertainty quarter. More EMEA a U.S. see however, new second third of market time our of and for we to of COVID-XX third large an trend placement new and the in quarter. ahead. the As the we believe and his the travel recently, are creating of infection that seeing saw operations and quarter continued and rates we customers' in

we by subsequent customers pick-up work, As expect to orders in followed a return in revenue increases. periods

timing However, this uncertain. of the recovery remains

We waves Absent projects cyclem the more XXXX length current continue due the and expect lockdowns, made lost XXXX consumables in more state up instrument the as selling as return additional business. the to infection their a stronger our our with were should non-COVID year catch of in do been come to to to some expands. customers base expect severe be diagnostics purchases would our expected move to base not XXXX. that of and have business to We of a back normal that

additional of in outlook of as depend our to course in pace many elections. expectations waves the any on Chris Of And that, the closing these the slowdown work remarks. including our infection, with the timing customers' back factors activities changes and or for priorities, outcome impact and of national turn all after to of call as return well will of U.S. I

Chris Linthwaite

Thank you, has personally Vikram. us This pandemic and all tested professionally.

the world through enable out In this the this, go products to all virus. to all people able to more around hearts who be profiling are of of Fluidigm's we immune midst testing been understand and technologies impacted studies. to virus harness better proud and by this have Our

agencies, health pathogen outbreaks we who that integrated execution public lead may and the built are leaders have track record our government with of ensure we will new this their and crisis scientific officials, for relationships planning. during future trust We preparation into

of that delivery right of and instruments, believe a to and information are integration needs. to management in future we market manner data meeting important timely interpretation, the digital critical Additionally, place

than XX our has and a We added to innovator digital leadership with guiding of Officer to Digital have years experience drive team leader Puneet coordinate vision. Chief our innovation digital and veteran more Suri, QX a to in dimension takeaways this Scientific progress in our this come. sharing I'm team Fisher offer Bio-Rad Thermo and about I years and the new excited from joined at call. our five

clinical emergency funding capacity and strategy a test, system expansion, COVID-XX COVID the for authorization of incremental new we two quarters; innovation outlined tests impactful executing we placements, sales use new by on First, new non-dilutive the over studies for are cytometry powered mass technology. and last

testing growing of some core through business diminishing, we worldwide. backdrop uncertainty COVID-XX there significant escalating business are in is but Second, of and our against cases are the our the headwinds

provides see testing our robust to the Fourth, around fifth, new testing for bullish COVID phase. of science XXXX will overall our to and Third, Fluidigm for life a committed determination this horizon and demand approach shape partnerships growing agencies for competitiveness are new an expand portfolio common fueling differing the growth. care innovation our organizations, incrementally In to tireless reach, disruptive are closing, future in large, employees, of the is sector are paradigms. in working demand attractive, and health government conviction and we health public workers, is meaningful and together participant And to market are our who on be products and We private the efforts emerge market. with needs. our capabilities, well-positioned global incredible we researchers, traditional grateful and market expansion segments that will strengthen good.

our As always, COVID-XX goals I'm growth. the providing for up I'll for foundation diagnostics I proud well XXX employees thank quarter. the and line our profiling for of on this With the has how they immune in past are almost as that executed future team as their open questions. contributions

Operator

Brennan the from from of first Our Instructions] Dan UBS. question [Operator line comes

Your line is open.

Dan Brennan

Thanks Hey obviously. for the quarter Congrats the on Great. guys. question.

think all to fluctuations insight how COVID, would us here. just some the the give on given and Chris from be with low visibility Vikram about maybe it just So, is to obvious question helpful while trajectory is

you starting support the color provide side? can significant, with pretty box XX So, on any COVID good volume. obviously first placements

So, wrapped could that? could And in visibility the the the in about that for beyond who box, help think what and replacing are the just customers directionally did tests And kind with quarter it How you XXX-or-so up just what if adopting? revenue if sounds it box on is the customers QX? all or some like you that lower gives is they're about B, minimum bit at think you're the the then much that consumables? a we of of what these buying But end. it can us the is you of versus what mean thousand engaging pull-through discuss you is directionally could business model when comment little this economics So, revenue you?

Chris Linthwaite

I'd for get your there Dan buck like of to a on lot bang questions.

I'll So, in. probably I'll then start ask to Vikram add and

some So, of redirect. need it to of you may I'm going paraphrase and to kind

shape business the -- first. on we're shared the the very the some about new COVID we'll content -- about of pleased talk of think I placements. with portion We here obviously, in number

think the really getting traction. our into how would XX% I can gave here Of this little footprint that had or color segment, bit about I give of mean at we are had we majority think in I can key full -- we're can that them first market the we we production in business give the good business. varies began. COVID goes that for one outbreak complexity that questions of contract relatively at people could limited that expand And footprint right given attempt -- have high can so about labs that on we when good the that facts color and to we model. we of to testing we that and a the placed into It on the best segment we stage. show

And contracts also of how we're automation. for of -- depends a And so supporting it that's logistics they're in playing that on then the the or -- and context. whether then and they're bidding how for after so the those the committing market they're to not role going the which collection segments

out solutions they're that's throughput installing automation on full have leverage So, existing solutions another variable that or access or full automation sits background. the if to If they our platform. incredible in take our of

sort that dimensions of the the that's impacting are ramp. So

momentum third there's the you a good initial on can strong which it cycle in look we think QX. had at I really quarter in -- placement saying built

models it's and we so our ramp speculate that on side, working more tests their situations. can actively And the dependent a say And unique own for kind upon on pace business not them. of with can we're it's their business much of limitation I availability only own of the them.

We our added for own their automation areas work with specialists to them business. to have up team on we've ramping

also demand market on Fluidigm creating and PCR points about create on so that we're putting -- additional addition, that In draw or draw business models. their awareness them testing pull proof the working saliva-based availability end-customer and for the our

So together work those we're with to CROs. trying really

-- The a some in which wins would second on, number big which segment. of the about period Vikram we the segment academic color heavily talks more be placed have

just a already case, that are and we've represented that our represent ramped is represent but kind in and history. at of those had multi-quarter volume commitments. orders those to quite the of largest And least many couple commitments so of and situation in of now -- one beginning in some ramp, And they each accounts them large some that still have

future. we for the are order book building delivery So an in

also So bit that's far significant placement a in maybe of maybe color and placing instruments on ramp-up on was the ask anticipate in testing his and quarter course, the the since on volume. any then to continue Vikram add to comment non-COVID the business business. I'll the some of impacting little testing some things we around a to additional COVID the drive comments. -- beyond the so number fourth as are Maybe that profile we model on additional and actual color And that

Vikram Jog

to COVID Yes. question today considerably. from question. your No on those been headwinds I non-COVID due quarter-to-quarter comprehensive. headwinds as mentioned the have anything to see add the the But to the that's experiencing sorry. quite you've of very Chris, still we diminishing gone related in 'XX, pandemic. as I part we With we've don't think

saw we For example the between business. QX headwinds considerable the QX, base a diminishing for of and

Dan Brennan

the base and I'll queue. one more back on ask then in the have I one more Okay. maybe on COVID get can and I

the business backlog right the base place for and Just given on what to you opening with the get. today? Chris always QX? cytometry instruments it's mass carrying about just of what that I now sort kind on the maybe portends visibility on wondering today labs are up mean looks still and question what funnel that inability of like you Obviously a

Vikram Jog

mute? on Chris, I think are you

Chris Linthwaite

-- then, you go plus production like will jump QX, placements comfortable of on but you I installed I we're sales are on backlog with Vikram. anticipate for period. we On don't have numbers -- think in backlog in will fully placing would that QX, give so I to from color installs the you'd QX some we in some is there's backlog both in But that we've welcomed into now. providing get right additional that been the can't time, pipeline on specific where if instruments, very have instruments, in

to our into again QX that's particular growth in time of started is shelter-in prospects and the few the more lot we has focus mass really last complete in put where was we historic of see areas the and 'XX much as In fact, why began of really that the the an tried back that and period, to place as or traditional of strength the the on both activities for the there had place transition uptick to and channels. After tying of color on. a years. QX line cytometry really strong and balance one development QX, pipeline really supported palpable was was to that in well XX%-ish pipeline area a I year XXXX which on we along portfolio digital And in bit that the And to platforms. digital events little a franchise the the trend over additional the

lot highlighted on the strong changes depending their we behaviors. of a have of But technologies -- that platforms purchasing our factors on the So shape and both those in certainly I robust of any well transactions as or side. the if near-term calendarization recovery overall as in are in there's people's but could imaging timing or as facilities think the near-term we're see just are impact if interest of down, Vikram encouraged it's with there availability some suspension shut as the budgets the the

Dan Brennan

Maybe last one.

tests not existing remind least and us -- here? one you sounds on your ability too of deliver share And both from on at us could follow-up COVID, of like what's then some really more guarantees terms so In are you in capacity sound it locked right where this with minimum -- boxes us now. of can quarter kind a there COVID Thanks. be the just to just basis? any sense what certain for a want floor about could sense to of that you give kind minimum there give on would like guarantees it testing us go could a is But doesn't fourth you your

Chris Linthwaite

we -- Yes. to in we're quite I production capability is RADx delivery many are certainly really The of. have appreciate something of manufacturing of to for any Actually quarter fourth provide additional that from for capacity stepped there we'll NIH the question. deployment quarter fourth the the year. test dollars first in the customers quarter I don't anticipating further the but the we're next with. think of expansion the tied contracts for tests COVID the capacity the and manufacturing million of in that color our we've on schedules customers a that proud six capacity up floors,

was our Campus additional additional early COVID And inventory that's why we're in -- how to we're awareness Program capacity position that capacity we movers we clearly constrained. create that Safeguard setting that really we to supply of they're technology campaigns to promotional had there's market had pleased question. with Fluidigm and should capabilities some part up and So deploying chain signal of and the extremely the the consider against very that wanted we're ran of one an into first people from the produce adopting we the

quarter don't constraints anticipate side, for box time boxes the near-term fourth we the the On period. on any

Dan Brennan

queue. the Thanks guys. I back will Okay. get in

Chris Linthwaite

Dan. You bet. Thanks,

Operator

next question the Our Mah Sandler. Piper from line Steven comes from of

is line Your open.

Steven Mah

the questions. congrats quarter. for Thanks taking on guys. Hello, And

Chris Linthwaite

Thank you, Steve.

Steven Mah

on opportunity. maybe to questions add just Dan's yes, on COVID-XX to So

to us into you So clinical a give long for yes, very Biomarks thank the into Can the cycle it the XX sense labs? four labs, color you And for placed that's takes? the impressive. whether small more six maybe to comment labs? funnel medium on to or they And potential and them are also reference maybe of weeks the the speed. then be they universities get opportunities size to types sales How on clinical up the

Chris Linthwaite

do can we Sure what Steve. here. I'll

So the We've weeks. come the and days incredibly variable. opportunities and funnel have on into had placements within closed cycle been sales has that

this also timelines that is redundancy business dimension have they want the put short So In that into of another we to of close incremental to dramatic. expansion used additional than much cycle. represents range a in The shorter opportunities or the historically. capacity placement quite which labs opportunities, relatively were funnel is

-- very -- Most the we large order are very, it's in potential. have industrial. them many of So of

the opportunities, academic segment. the So at say we towards versus industrial bias heavy a have moment I'd

for you're seeing other kind are robust. kind people of the -- return academic segment industrial academic segments And work that you're the feed the which of models side and around emergence the additional much the also even are more into demand we're to the struggled finding of segment there's expansion a what's normal, lot and -- seeing And starting cycle. market testing seeing incremental I think has types has online to will new I that of new adapting are in entering the believe, direct-to-consumer of influencing and come an factors as XXXX adoption. more been

seeing medium-sized and labs larger small have in. opportunities you So expansion in labs. moving We're are that

time tremendous a very We awareness inbound ever the like opportunities academic the Program. that for one had lead was strong we've we more be a campaigns end very, back may very of on we've the run the It Campus that tried first and seeing promotional very, of strong generation. had are -- program We interest. or Safeguard strongest

why call be focus. hard makes say, opportunity. tempered to across to is we strong trying really we're What to enthusiasm. for plenty There's it's board. just in quarter. have to I our make it So do this That's And it the a to have of

we're capacity And opportunities. is drive so a volume obviously our the And partners near-term catalyst really into strategic us. the we're highest strong for trying then expand focus -- on and the to opportunities not more existing value opportunity to

Steven Mah

Okay. And of a but… more tests customers looks quarter. the that Got XXX,XXX in industrial industrial, sense it's a give on Could That's us like of it. Sounds you breakdown -- helpful. Yes. about versus little the academic?

Chris Linthwaite

Vikram, do that? you take want to

Vikram Jog

I described had Steve quarter. made Yes. ASP my the for in the remarks

a from Safeguard particularly Program. a large two think an our gave a overall an you perspective we this order I orders concentration indication that from just universities, had large large revenue quarter including sales university that from historically -- Campus under

have was but So we this the mix, focus university on a the do quantitative segment -- a a quarter. more standpoint, big in this from

Steven Mah

Okay. Got it.

Chris Linthwaite

sales think say, cycle as and instrument was larger heavier academic going I the industrial quarter this segment Yeah. placement large testing orders. Steve about those in as the to of into reflected I just a a segment being by mix

Steven Mah

it. spread. it. on Okay. Got a little And the testing Got maybe bit ASP

if primarily a $XX. you us and on sense You Is $X can spread mentioned ASP test? And margins driven? give it's that the between the volume of

Chris Linthwaite

take your you color that had don't some in why you on Vikram, that since segment? one

Vikram Jog

Yeah.

between do whether would combination volume including at segment I customers get still think not are the it's Chris drivers are more we a that the nuances a that high of other emerging reimbursed there very the talked versus of segments will I are get that that and types about that commercial to labs level. then say And selling reimbursed.

the low you We in extremely the weighted range, had our quarter towards performance we as ASP end gross was despite margin. have see this an that could our proposition fact from gross And here. value good margin the our improvement of

drive sectors. ability So we commercial to as business more are expands margins with comfortable quite into our the

Steven Mah

Yeah.

Okay. that's to queue. a think Biomark, Is you that some where my No, that initiative? the on color bar-coding us there's or color. I'll it then question initiative the the give is RADx-funded at? in Yeah. expansion you I And XQ, then could going said a it's maybe related of RADx Chris And second-generation -- if going to Biomark. mentioned great hop is you last there's bar-coding if to capacity not back into be be

Chris Linthwaite

question Thanks Steve. the Hi for also.

So things that separate there. actually two kind of it's got co-mingled

come start QX. to we're to So sharing excited after first next-generation the platform, super I a That's Biomark out about. anticipated talked details which about

So I of the said half first year.

So generation the next the new for year we'll about midpoint system. talk of

expansion The capacity on testing. second was part around

started capacity that more is for So our the a with capacity as to incremental QX the linked capacity we've a in related to and and first next execute entered directly and of capacity on we'll the manufacturing of chips quarter add of expansion continue which We in period. year. the time we in absolute QX saw more been capacity RADx investment step-up journey kits that

Steven Mah

Thank Great. Okay. you, Chris.

Chris Linthwaite

you. Thank Yeah.

Operator

over Agnes it back closing remarks. to this I at Lee see I time. no questions to would further like for turn

Agnes Lee

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

Standard BioTools (LAB) 8 Nov 202020 Q3 Earnings call transcript