FLDM - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Fluidigm First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Relations. Peter would to conference I speaker your DeNardo Instructions] like the to over [Operator with Investor you. Thank Go ahead.

Peter DeNardo

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

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

future product as During and funding information events us, results and those as trends COVID-XX Fluidigm be except trends forward-looking call currently session, The Examples update to revenues, well plan the and are testing disclaims XX-K forward-looking to and the markets. on business for this law. we Information investment our expectations. growth markets revenue Report that any may as and to on uncertainties These these required statements year results Form and our Annual occurred, performance, and product-line plans in include access in ended Q&A obligation and have affecting and to other opportunities. risks planned materially about SEC. to statements contained as information that related collaborations risks may strategic subject margins, expenses expectations, December diagnostics statements current based business, statements yet performance, other not guidance available forward-looking statements other projections financial the about from on cause and as by to call circumstances are on and operating uncertainties substantial models actual market and with releases, subsequent differ our clinical including XX, including events market statements will and XXXX, is expected well Fluidigm's and and financial these filings or EBITDA, opportunities, about plans make our grow sources, partnerships, for

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

Chris Linthwaite

and delivered our you, projections X-year the progress this global Thank financial last Amazingly, Peter, XXXX of Vision the afternoon. anniversary good and marked pandemic. the on In quarter first objectives. on quarter, incremental we our made

of all terrible are the advance our role helping pandemic proud modest of diagnostic impact and in we on research had we us, While that the testing. mindful are has of SARS-CoV-X

growth from the build a benefits portfolio. $XX our markets to investment, for and worldwide Over in than financial emerging than million we tests core near-term selling have diagnostic of the more the diagnostics our million year, of plus last government X proceeds foundation redeployed longer-term more

to and with some seen industry improvement COVID we, the last core testing demand rapid have Over a XX deceleration business. days, in most along participants,

last during highlights strategic share quarter of to reflect areas more provide conditions. I the on are in will our new innovation will during some of XX, the Today, the As a point, our developments including include key will from overview of healthcare revenue to key future will role deeper upcoming pipeline we On may in select who and are and a result, cytometry including event pipeline. product excited innovation the discuss franchise this portion we external update. our our mass - market strategy, discussion Vikram tomorrow. of from May business, experts, guide which touch brief on business for and our investor review his projected details include FY shift the virtual shape and a revising markets, the XXXX, a latest mix the a mass it Vision today, plays of dive much into presentations XXXX, cytometry how decision-making

event later host a business. microfluidics We plan also focused on our to

and quarter turn to to our progress. I our take me XXXX reflect that review first Vision over moment the the results, Vikram relevant Before first call discuss a guidepost let to our

For partnerships. XXXX, focus our and areas Vision are innovation, X beachheads key new

Our execution areas recurring our our growth in growth revenue across and these drive product in will underpin all categories streams.

competitors talent. the we portfolio few In the and healthcare human a Unlike companies system more regulated other and specialized more already last for know-how, to bridge to and markets, have we into last aspirations regulatory have the continue foundation added understanding of have years, of many strong Over capabilities leadership prepare property, support for emerging decades, towards research health. as a X sustained the clear decision-making that research we are needs we pioneers. transition infrastructure our technology healthcare quality technology of large entering established now Where markets, success. our for unmet intellectual in that are applications just a our entering

reflect objectives outbreak further and Our XXXX COVID Vision accelerated the steady pivot transformation. this this

prior for performance met growth in in powering decline system Let our years. mass a sales with versus notable new overall revenue markets. me In - our expectations while start QX, that been year-over-year, the cytometry, with growth business European the has saw we our

me. hi, The sorry, Okay, back. I'm everyone, gremlins disconnected

last So in growth markets. got statement I European off the, was around think really with I the cut notable

note, upcoming a in of the anticipate by generation, positive instrument recurring key revenue, a group driven pipeline highlighted fee-for-service headwinds XX. heels and time. we our pleased in On year-over-year, In user kind our tax large a wins, our with our faced and company. we markets. leading will quarter these saw to prior going decline XX new COVID-related overall on of in met and incentives the say with QX, growth over the resolved in challenges - and we further lead meeting growth some revenue versus from I'm and we good program progress sales we're and in on pharmaceutical Also, We performance temporary our by while markets, system including reset in the completion projects, challenges. consumables of are be So the new other of expectations a expiration for anticipate several May growth notable European saw

financial made Beyond Vision in our considerable last near-term XX over the performance, for days, objectives XXXX. we progress

Let's start with innovation.

has working scenes a next-generation the build for product major franchise cytometry have behind will cytometry Our to multiple for the And we been source innovation a - mass Fluidigm the years, of market. been past new long support and that few launches.

specifics clinical year. been cancer details this of business a to installed For at users, requested the cytometry product early research the for our leading penetration, competitive reasons, improvements for and organizations has access map mass these however, prefer our time, Transitioning which many from Progress We from peer-reviewed focused that progress our our a we've contract trials not product placements we cytometry robust beachheads, centers, added award-winning this of Assay, in long-term that core analytical on our competitors. improved this we serve usage few our to second share more consumables, and we over our in trials, any including note on competitive I on are which the we than reveal COVID new ecosystem last base, our will tools next-generation contributed in accounts, to including X part trials and dynamics. weeks, has represent will QX, key and half track, at growing have built demonstrate revenue of biopharma of metrics clinical Immune services innovation we XX to years, customer road significantly XXX mass of outlook roadmap, roadmap research. and used beachheads growth. clinical will and Profiling system Maxpar feedback in publications area. system In address few total

been related to publications platform. our has X,XXX in technology imaging over of Hyperion, Our them XXX with over featured

improving Many and mass change of for health global preclinical to more a standard and mass publication as - than into accelerating tumor could data X adding the the the platform data of a testing be highlight issued day future research. demonstrated analysis. researchers criticality work morning, the Their team decision-making. publications imaging-based precision publication field of grows. where these platforms, cytometry referenced A suspension partners the technology to see that This are of next-generation national medicine usage these industrial analytical care importance integrating both and translational use into we therapeutic sets such physicians. other We IHC, of in our breast goals. and cancer integrated We release tissue unique in for agents bio repositories of similar by highlighting press cytometry potential a bioanalysis sequencing suggests

Our can partnerships, disease an out consortia are and and of announcement service content, working Closing with numerous accelerate exciting areas. development unique other with China. journey, help approach we in software to with to added panel clinical this portfolio our we partners and

key decision to And milestone sold in under QX, anticipate As signed for we we additional another PLT we platform. regulatory health yet placements is oncology system making. we with Helios journey their support the This on playing in care our initial announced, towards applications Tech. X a activities an filing clinical in agreement that X agreement, role important

are to cytometry partnerships beachheads congratulate elements providers part service funding from to our $XX private for a their the States critical growth wish a Value-adding to of the of technology our the are clients. million partner, are adoption company They key are strategy Finally, a mass our biopharma announced conducting number platform, forward. United we the going into growth expand now operations and our innovation, of by accelerate Immunomics business. technology. Similar powered global to franchise. round mass of trials that by funded another and ImmunoScape, clinical ecosystem and Vision Asia a to this expanding Switching cytometry, microfluidics of XXXX Singapore-based

compared We to later QX, In tests modest sold more on saw investor QX this XXXX. COVID the will this of as number year. focused in topic the in decline share we event a granularity

However, COVID million the States, in customer a United market sharp for drop-off of which of vaccinations in quarter demand in back largest is the pace as our we the testing. saw the increased landscape, half Based demand on reducing our testing general million. sales and in our uncertainty signals complex forecast $XX are COVID $XX by the we FY testing XXXX from to near-term weak partners lab

into the platform microfluidics in transformative our through our demand, a despite briefly deliver sample our the testing did all strategy us We COVID steps innovation the as that outside franchise. in now award, are partnership capabilities build growth During many These - integrates products parallel, and of and a are cartridge will that we new poised menu experience numerous of developing help testing - sample Funded last that commercialized our manner. part accelerated incremental introduced After non-diagnostics and franchise. August in funding and COVID envision some Shifting in developing coming has our pipeline throughput, our proprietary platform. we In ultimately, XXXX from cartridge The in in we innovation the a will yielded of we benefit were DARPA, of microfluidics this our durable slowing build support of business will missing and a Biomark the a the foundations diagnostics are cost-effective I innovation large we disease. market, cartridge next-generation before crisis. for innovation multi near-term the quarter, categories. new more microfluidics This in grants for PCR expansion enabled numerous decade pandemic the activities assets biomark release from Regardless quarters. the to workflow on product chip. we our HD anticipate our to than call. infectious Initially, dynamics to the will business. with RADx the of novel core to we earnings government testing pandemic be non-dilutive investments also cornerstone our that accelerated market,

our the QX. as progress and in newest early the increases a platform, the COVID our with late well As as from instruments advance IFCs. announcing These current years other a X development our and HD existing launch commercial partners for the updated from will sample-to-answer for access is ahead. of diagnostics anticipate one-sixth of Juno reminder, new innovation-driven platform broader being integrate This cartridge an transcend We platform franchise our this products instruments. and growth into in program sleek single size market developed input in this will Biomark leverage optimism

clinical providing Beyond testing for are for innovation, our crucial menu. in base market in innovation the beachheads an further installed

we secured account the service with associated has will details anticipate quarter, contract, lab course. the large market a During new we and This sharing an been awarded $X a notable public order. million due which testing of in education the

stating are partnerships the critical of a sustained success. perhaps obvious, element our Finally,

We are and focusing and advanced work to to a innovation commercialization relatively therefore, small partners core augment technology capabilities. go-to-market distribution planning company, our on customization, are drive with menu and

diagnostics. a focused on QX, with partner, During we transplant made new progress

Swedish our we with into very market that where are unmet on plans, including reasons about cannot For company. IPO will this of growth we speak but more is the One we fund openly confidentiality, Olink, collaboration needs. excited of congratulate We any journey their in partnership with participating growing details prospects rapidly significant successful them yet, can a proteomics longstanding a diagnostics. share

Our uniquely complementary technologies proteomics suited for of the unmet market. fast-growing needs the are

a business our expansion, we units consumable, on key further platforms During the Biomark customers. and will program service including cement the into system. our this to in to and QX come. Fluidigm second of relationship customer XXXX, providing launch. and purchase IFC for delivered and new that we for Olink's IFC shifting on access a we order new We'll years the instrument the to relationship Olink marketing. platform, production sales the on milestones a purpose-built commercial to responsible both be of and turn, support will collaborated while HD delivery have a early support We of in major units new platform manufacture year application will In menu linked be half XXXX, custom in

strategy that creation across and over insights foundation Vikram? for franchise our support key pandemic, in summary, call our growth combination COVID I'll first our deeper sharing detailed to In of there many and and our strategic Vision turn strategy shareholder a events. are opportunities transcends look We forward Vikram are are the We plans value planned to discussion and focused partnerships milestones business. specific the in to XXXX excited ahead. years providing Olink's the quarter now of to our for results. the financial beachheads innovation, sustained the and

Vikram Jog

Thanks, Chris, everyone. and good afternoon,

I'll I to Before our we XXXX would with information our financial first our investor and end presentation have guidance. focusing and note on quarter financial supplemental like to for updates posted that quarter results, turning XXXX by financial geographic website. the updated to in begin to addition on highlights

revenue on As on focus executing Chris financial Vision has projections on growth. continued our to QX, in our delivered we outlined, sustainable deliver XXXX and

sequentially customers. both and the expectations During lab declined revenue volumes COVID-XX was declined commercial quarter, testing our our and below as for overall,

were XXXX We Revenues X.XX and to service XXXX. during reported XX our in XX% the the results, low the by consumables, increase million COVID-XX million end of million, end, of $XX XX instruments Microfluidics $XX.X down by our the revenues, million from revenue XX% million million cytometry. from $XX that test offset Our kits we microfluidics at our COVID-XX-related primarily in contributed that concentrated quarter revenue the biomarker testing our of primarily sales revenue which our of QX million was a XXXX. compared revenue was At QX range. testing. service historical few also kits expected, generating of COVID an was which guided remained X.X million new in This QX. testing year-over-year. from down commenced as but in of primarily year-over-year, in of revenue quarter, the was increased $X.X reflected and QX million or $X.X driven and range remained XX% sold quarter. consequently, to discontinued at $XX COVID labs customers university the mass of at commercial business, end product ASP customers than of partially quarter lab growth $XX excludes COVID-XX top for higher in franchise, and, Total end base Product

excluding dependent base sales both grew products by revenue million of funnel, revenues, recurring to XXXX, continues year strengthen impact but or microfluidics and COVID-related instrument business, related funnel ordering we QX activity to instruments was and offset future million This our due from mainly COVID-XX our service revenue new lower driven year. to of expectations, rebuild $X.X COVID-related orders, was cytometry growth and while any the in second by consumables. half in restrictions, product X% Our versus our at higher Mass we XX% $XX than prior catalyze the remain partially the revenue than and quarter. delays higher pace expect this on beginning which expected customer

quarter driven prior a Looking perspective, revenue. regional first COVID-XX the revenue XX% Americas to by service higher of XX%, increased other year at and Product including revenue $X.X the grew revenue revenue. million million, compared $XX.X to period from

higher quarters, As million XX% instruments quarter EMEA XX% revenue. were in revenue million to $X.X of revenue in $X.X sales by offset to COVID-XX grew U.S. majority cytometry Asia cytometry mass And Pacific the revenues, revenue. by the lower this recurring driven partially driven grew by previous our mass

million through and development reported As other has agreement this nearing of million of phase OEM of development $XX.X million XXXX. resulted we revenue $X.X the noted revenue revenue The an $X.X earlier, of is cumulative associated during in with and agreement. of quarter, the QX completion end development including supply

versus year the non-GAAP quarter first net of period GAAP loss on $XX operating first million the and XXXX quarter by by higher the XXXX performance. increase million, increased the service R&D $XX.X of commercial prior revenue. The of quarter operating was $XX.X in offset net in product loss in of moving XXXX. million expenses was partially loss driven net our $X.X QX And for XXXX. first to million Now higher from and higher from an

headcount Non-GAAP R&D operating expenses. expenses compared year-ago XXXX Sequentially, facilities in related XXXX, increased XX.X% favorable year-over-year the period. inventory million note with With this non-GAAP prior in on At prior project million operating and operating charges for about focus alternative, was offset to to press earlier to in points operations lower R&D mitigating the quarter increase commercial the new help excess the Also new containment and bottom differentiated the margin my ASPs, cash expenses to between basis expenses of of is the for high $XX.X product for in by continue of that higher are cost and our by goal to at was with comments year higher period, basis few improvement, mix. and revenue first a product our service provided products taken usage value quarter, and are product measures line. improve the XX.X% impact same with continued quarter from look favorable by fourth primarily fund we products and and the coupled absence tables to end cost-effective XX the were Please investments figure - the while expenses of points to issued service increase to customers driven introduction GAAP the contributing by next compensation due the remainder The driven primarily time, attention development, was the quarters. and costs. variable will $XX.X higher first measures. our and product our of partially non-GAAP over obsolete and in reconciliation quarter on was for instrument and down the The release that margin in today. margin earnings XXX Non-GAAP sources of compared mix.

guidance. was revolving end asset were And of program XXXX. during Moving base cash at RADx restricted IFC cash end $XX.X facility remains [ph] Investing of XXXX quarter under million, revenues capital million. compared color was highly of the $X.X and [ph] of for [including the was to flow cash needs, payments this $XX.X under were increase million testing million $XX.X based and equivalents of expenditures of of compared the quarter, burn on innovative million expenditures. QX is including equipment expectations. believe expansion the to cash compared flow let in $X.X $XX.X a quarter RADx of we of million $X.X] QX meet the now million totaled have being bonus our critical XXXX did million at and our facility, grant sheet, our $X.X related the of quarter Employee Operating with the none testing to Cumulative $X funded first provide the the [$X.X end credit for in program. was in cash first and expenditures, balance while variable. December negative At proceeds which which from under cash the solutions million COVID-XX XXXX proceeds an was quarter not higher $XX.X me prior-year we evolving million] the and to borrowing to during $XX.X million the manufacturing utilized. quarter, in investments closing, short-term the XX, first And through Proceeds the the quarter, on for the address XXXX. revenue some outlook purchases period. the for million of

to of of million million. million. $XX of the and revenue by to is base net of mass loss line product to $XX franchise Net $XX than and million COVID-XX, from be $XX increasing and Our from in be approximately projected revenue service. base This the to be $XXX revenue project to to and improving expected introductions, to and service performed and to background, downward return We approximately across lower $X labs. or approximately $XX range, revenue XX% revenue year-over-year testing, we $XX million loss million, and and driven With $XX offset by million excluding to includes $XXX XX% $XX level, anticipated COVID-XX. million, million, growth base revenue product total growth. below At are to year-over-year of numbers our revised partially to by or to million QX upward business we to low-end - excludes approximately non-GAAP million our cytometry Other million. net million is million. to service growth XX% million for positive revenue loss year-over-year service above customers of new product COVID-XX QX, guidance of business, million revenue XX% to our base to or their the to the previously and be as of our growth. this higher service better be revising expected Microfluidic revenue, the million $XX excluding the revised revenue, product including is revenue million service now full-year our Other $XXX $XXX on expected instruments, for expected from consumables and is COVID-XX to which by excluding driven base growth, revenues approximately growth. COVID-XX revenue, anticipate We product outlook X% cytometry. revenue more the mass expectations business, product growth, year-over-year base base XX% XXXX, X% revenue service conditions excluding revenue, business, $XX are COVID-XX $XX approximately base XX% $XX revenue $XXX revenue or of million $XX and approximately to product product COVID-XX XX% driven and $XXX to from to million XX% reflect

be for between that, to $XX million we and open And total with $XX questions. the revenue a anticipate As for line QX Operator? million. we'll result,

Operator

Dan [Operator Brennan Instructions] from UBS. question You comes first from

Dan Brennan

us mass the of base saying XX% full-year Thanks guys. and could Hey, off, taking the you of on questions. be walk terms underlying the cytometry business XX% guide to base of basically business, to you're the microfluidics so to microfluidics mass in to it. for be your ahead expect just below Maybe through and cytometry start you

demand that can color give remarks us. assuming some that, for about little you already the of prepared products, visibility think, your talked around you're it and new Chris, maybe seeing out Just from stuff, you some bit because early I during you're a access for on so tease some

Chris Linthwaite

Vikram, and to that? Sure, from take hear to ahead you. hi, Dan. go Maybe, Good you want

Vikram Jog

Yeah, take sure. can I percentages.

As would expect rate XX% not degree we in say be mentioned, I to mass specifying the point percentage that than beyond XX%, low it the to in we overall specificity a the that's implied higher rate. growth growth would than that we to be it saying of to the XX% mid-single-digit are cytometry implied. higher that's overall

Dan Brennan

then, quarter Got just on talk can maybe the bit it. just [indiscernible] And we itself. a little

So I open. was your it I prepared you be about but from cytometry labs in lingering year-over-year, the it down you maybe mass Chris, some think business think impact about talked the being [indiscernible]. remarks, talked not

obviously, color Just around easy in the a quarter? Any comp what give the like, off, transpired or order because XXXX. us some color in on book demand trend, you very coming are

funnel. that of sense a us give just So

Chris Linthwaite

Sure.

Vikram Jog

I Chris, ahead. go - can yeah, Yeah,

Chris Linthwaite

Okay, ahead. go

if first, you go like, ahead. can You go

Vikram Jog

going overall I business Yeah, say performed no, to that better. just was

I of business think It would we the guidance. we degree I effects the already was COVID. some the gave had more to, drag talked about of on when second say, related

China geographies, other still our first the the a et prepared service remarks issues in ongoing. in in that's there So quarter. But overall, permit business we expected in And and instruments, issue performed today. across for that mentioned were in consumables we We tax example, funding better we cetera. had than some

Chris Linthwaite

kind of second address just part I'll that, and maybe Dan. the Yeah, of

highlight, mass as things and that Vikram all were the Vikram described we'd highlighted of specific. think I where cytometry just most did - So

access the - in lockdowns province Canadian to restricted permitting tax funding the Canada. the releases Canadian from in contribution of continues the occur that and access issues, in national the lab both certain So some or lab level sections and

of kind really to shift of kind I'll So leads the overall.

to And QX. saw up then X- that and the immediate in all of conferences had So back-half equipment, to really, the of we Zooms and this a year that us we leads started the I'd the to conferences a shifted and period we a year. is of tired generation probably the what to a certainly activities. generally first has about cycle. And QX, through leads - more year, traditional whole but speaking, course been shutdown the mediums, time, our lead of degradation going XX-month we we're last QX digital through close say the and capital last time through saw going little continuing the quarter, in and stand to bit business impacted competency the of talked the in digital all we squarely during new

and this we've seen channels of quarter the new a first online new about normal. that's, a as those year. improvement was of so careful come We're continue been steady really just And have to this all strength through is see

these channels are So historic those we'd to in our lead different in what be rates that that that be And real not? experience So experiment traditionally leads inquiry experienced time. close, will through coming the from past. of identification qualification or What and we've be the quality had through consistent or running we're that will a the close are leads? with

rates. strong So quarter, and improving, be we're view showing appears and far first that. leads it's to through conservative they're a the seeing quality It we on close took that pretty

shared in products. the incremental So want about informing mass that's - to confidence piece, we information just new equipment part cytometry the plus our that particular we in capital of the

Dan Brennan

yet-to-be up. early, guess, the new or some talked guidance coming the building. of of terms hear some I order you a in features or expected implicit and maybe from terms more But going obviously, about have in and in these products? about in from of or right customers to the you them benefit - we're again, products, demand now, the And Chris the interest trends the unveiled of Vikram, baked you're But that

Vikram Jog

Yes, that baked in. has been

Dan Brennan

I speak small a any any but to just any, you relative big know, degree? degree? don't to granular quantification, a To or Can degree

Vikram Jog

quantified with we Well, new as products. any that haven't

temper careful factored the to appropriately been have with We that, the amount. We believe our quantified that's expectations exact haven't But launch. been we in.

Dan Brennan

microfluidics partnerships others. it. talked few some about in and of about you the Olink talked don't - Got And you want then, side, I a particularly the

to year? that some Or be something these of meaningful? potential for Just partnerships XXXX speak in can you partnership from to opportunity it is could assumed multi-year your is - implicit a there what's going into be them material more of some opportunities grow these to more this

Chris Linthwaite

to that. I'll directed I the of Vikram. part take know you Maybe first it

have a of core far for these the Olink the broken contribution other or of measurement the anticipate of so for about But year. in for we already think tried to of business XXXX contributing number we my not partnerships, the for certainly seeing and do, now so relationship their highlight have the talked We to half with to transplant space, going more out, here initial contributing period. the the guide the benefit and is versus other the or response partnerships was one we're what out so qualitative the business not people period had in break now, I back kind which We section projections. lines

the they contribute. the that things control are these So Ultimately, channel timing should and relationship.

So forecast what in for delivery some and the contracts have hand systems we them. from is of next-generation

going we to anticipate all do years. things, we this course over that these year, a these of contributor they're and bigger of So become the coming increasingly see will to those partnerships actually contributions

Dan Brennan

And a maybe few just more.

the How I Just the China the permitting Canada, but opening missed in it. is cytometry, access restricted about in better to permitting maybe pandemic baked year? your back help restricted and And the drag China, way up, issue so that's issue expected Just think any that? just QX a later to guidance that in in tax access to tax typical meaningful get is the mass in that us or that? is in

Chris Linthwaite

call, the in equipment the that last, all to so and a particularly easy academic China. capital it hits shared it to I'll additional in There was, is impacts comments. we any welcome Vikram governments, and the on and Yeah, little which add overlook, color prior

through a segment, provincial and had tax the a level for goods for import file capital the national for against expired and quite credit, there's That higher years. and So many significant equipment. they after that tax western

That It think the been fully space, see the first by has, in have other that this impacted have quarter, would second so resolved. quarter. we end I it modeled seen far, the entering you'll not restored by still parties of also. it was the be

of completely Golden out Week, conservative But appropriate it's things if issue. view that's out We, forward. taken it moving we've anticipate see our one since on is to how part a week come it's those provinces to this temporal it. again, on So of important start see control of particular

Dan Brennan

the or Can you're And maybe in now? last trends relative Do you on and you implicit to new feel one, you like just appropriately seeing you've so the trends what do how conservatism not speak been I'm hogging from your assumed guidance? you've up, COVID. about Like you expect? the feel conservative

Chris Linthwaite

model test I incredible and We is right? in on We count to then anything uncertainty and testing conduct of year then the continues of work can testing is that talk say public overlay it year. of on come And us can think I rates - think, our this ourselves. about we even this the certainty fatigue that to that of something, country. last forecast all And partners safely COVID related it's been only don't the the none and least or there's thing directly vaccine vaccination from an policy. at I off the

side on that's ledger. negative So the the of

we side, the look, eventually positive testing this uncertainty the all quickly want the variant as that thing It depends it the as variance this will is that role done process. to possible. belief in and play the on, On of be

got do other architecture as know continue for - breakout specifically quarter. numbers, just it it related we unique believe, we because variant COVID, of the respiratory variance kind our potentially after today, the evolve was you've chip. to and COVID broke some appropriate identification. our quarter. we first to color the to in So felt attempt the the categories, we for the of into press say on something of to for - things will We've in second we lot a That's the release we into conservatism, earnings But think given out have to testing

if So you in. that aired sequential continue relatively and that put something can going to will to on on at this that are be over back that we'll decline quarters. see then we're that, modeling it's approximately And rapidly we point

Dan Brennan

for Thanks Great. taking my questions.

Chris Linthwaite

Yeah. Thanks, Dan.

Operator

Your BTIG. next question comes from Sung Ji from Nam

Sung Ji Nam

taking for thanks Hi, questions. the

that other questions - terms there testing. the don't kind there there? side. kind Chris, are I that's know discontinuing could biomark of was Just curious, are you of customers for of it, a out customers COVID misheard few on some I mentioned some if are but that microfluidic you talk purposes? I Or if redeploying how about the - the in they And just that are capacity

Chris Linthwaite

Yeah.

For a very sure. That's question. good

been these categories the us of because has to why it clinical for labs we of establishes move that's believe additional into. for kind penetration is important, that a theme beachheads So broadly

is likely new or of space, today, the developed Some laboratory they're supporting other assays of X lower-hanging testing fruit in the offerings. they stand-up anticipate running the

- very want So capitalize that's want going to really I just do advantage beachheads. It that these believe them, a specific. to a on of to we we take trend it's be lab depends

more So some use some their and core to they they business are more the they're categories businesses. they new of today. durable. be looking categories going perceive technology cases, stack new are at we're In be that Others for back offerings already in their to that to cases, developing part perceive durable core

because to COVID. last keep penetration X.X a want want gained we - close over the think we we to don't eye - and to of on need to we we've the X related quarters something of it's quarters would these advantage So take beachheads, activities lose it's

I if don't know trend So there's a there.

more with you. that information insights we the provides, meaningful for think, share for we'll business that I As the future trending see hopefully forecast, then

Sung Ji Nam

Biomark drive drive and base, And integrates HD base Biomark do on system, current then installed replacement that - systems? Juno next-gen you. potentially installed you. to of your the of your anticipate Got Thank you system the that the

Chris Linthwaite

our that focused what - the closer - in focused platform very we the actual of day of I projecting more and to - at it's positioning platform. can stage. part talk workhorse that's get the support we'll the event, closer probably when new rate HD confident platform that we come earnings the we the it about future depth that will this The to of feel be platform I the launch, of the and think, of of the and long-term, positioning investor then for get versus tail or discuss

sample really range amount of assays the great, substrates, kind of And going batch is core to to reflect be we the will up of queue open or that a chips important given testing number test a type, be continue The sample instrument in to will think. it's whole really of for think, technology the a chips run. volume given I are has to run, wide the the that us.

as is of of chips advantage cycle on core HD. imagine flexing replacements So take The from as this something the can different to we at combinations that only I platform. far speculate continue replacement stage to flex

the next-generation Biomark. the make we're As because is really this platform. of next-generation sure well HD chip kind going to as is retro to - we single important, It or cartridge this retro the said, to compatible it's sample-to-answer compatible with as Biomark integrated this

a So immediately. may replacement may it not or cycle drive

that's think wait in space. see. a had since we've system the I lot something new PCR and years been we'll of to have a It's

Sung Ji Nam

market more Got do so clarification, you. really you kind And clinical this of market? a diagnostic targeting the than just foresee the research

Chris Linthwaite

Yeah.

asked platform, this I'm that with focused what the you we're We will for this with I Because do good product. this, mind. Dx a is the future glad history clinic think, really files, platform in us on being the it. applications We'll redirection. have that too. envision that's for design a the RUO really be

in And modalities. so Dx on, it research it's we're and that future also both business it along I'm But can pick-up be primarily the we'll with developers way. used the some sure for focused

Sung Ji Nam

them. then you. to that you're Olink. for a sounds And Got with partnership lastly Obviously, system for in building Great hear just unique it purpose-built your me. about very

your relationship, this view unique are think that Just of have? a this kind type opportunities there you pretty out of you curious, lot is a in or partnership of do of there

Chris Linthwaite

they're microfluidics that goes and applications, can is specifically. example, really the relationships example, proteomics great whole proteomics a the we think be a this partner, them which and great this There's to space, think, want platform, Olink, plus to from a successful platform, really this way emerge our envision transplant regards can. helping In - a every platform. is talk partnership the spectrum of forward I it, and it's sample-to-answer partnership in with I it with probably unique why we because And can we possibly to next-generation about chip we that look

version labs then or Fluidigm of ability product, that's assays lot that branded may between a that and versions be broad specific testing can OEM to X the for our of X designed that they menu versus purposes white-labeled platform develop software used a of elements are offer and themselves. for there's contract in customize the predicates general or the So industry of that applications; will

a gives into this really underlying will enabling of that's think about that embrace possible hands. future. we're us excited models I lot getting in these out developers' as And technologies as quickly the just types So of flexibility why the in partnership

Sung Ji Nam

taking the questions. Great. Thanks much so for

Chris Linthwaite

you, Ji. Thank Sung

Operator

That the will was our last for remarks. question to at this turn over closing time. I Chris call Linthwaite

Chris Linthwaite

next of any to afternoon, quarter Good everyone. the This Please second of like update you - for signal there are questions. be the call. close thank much. A forward Apologies website. Thank We'd further available for our today. We the Section All on concludes this kind XXXX. right. our will the call. the and if the attending look Investors replay to stuff of everyone call very to out us following reach communications out of

Operator

This conference for Thank call. concludes participating. you today's

now You disconnect. may

Standard BioTools (LAB) 9 May 212021 Q1 Earnings call transcript