- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Rockley Photonics Third Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Gwyn Lauber, Vice President of Investor Relations. ahead. go Please

Gwyn Lauber

XX, and and This our Relations at President operator, we This investors.rockleyphotonics.com. Gwyn available ended Officer; is the are earnings of is Thank OBE, release Rickman, Andrew Chief press and website Investor welcome, Relations archived Vice is With September quarter third Executive of for call the will Officer. Rockley's Today, A of on Relations at Chairman Lauber, Randy and Chief copy results being webcast the Investor you, on President the the everyone. XXXX. section Meier, Dr. Rockley released call section me on Financial website. and be today's of Investor Photonics.

like statements obligations, Before These I our goals timing technology, the and Factors our status are to, these in forward-looking burn, and earnings market actual and our parties, the plans, or by those cost guidance, products to These press from to schedules, Risk our discussed development bring and and product section risks vary research expressed performance to our the our and affecting risks financial expenses, uncertainties, which forward-looking statements forward-looking cash outlook will financial results of those statements today's uncertainties may forward-looking not anticipated ability strategies, focus, cause customers, foregoing. bringing partnerships in platform, These to obligation our with subject but the turn are trends, implied not release limited are include, statements. as other debt and statements. contain and materially our and or of these commercial our the new of of no opportunities discussion on features, cash to and today. We call factors the filings of resources, information as market, and projections undertake our Any our as that statements that made report future XX-K call limited I'd SEC. revenue and this development but our to on with are assumptions based Andrew, note and forward-looking are on include, events. scope, our a to, our well update studies result Form benefits, over products, third annual as to

to addition found financial accepted press certain In generally not and release. that included accounting to these earnings Reconciliations GAAP GAAP these reporting, are principles. non-GAAP performance. believe in We U.S. the our Rockley enhance non-GAAP report non-GAAP conform measures of measures tables the measures our of in understanding do

the I'll call to Now over Andrew. turn

Andrew Rickman

thank briefly earnings and of highlights. In us our Gwyn, approximately you, our I'll XXXX for the Thank we you discussing start Today, call. generated by to turning our joining before $XXX,XXX. all quarter, results for revenues business third conference third-quarter

ramp. Randy cash-efficient functions. our I'd in focus $XX device and account finance, financial a performance was by our profit million at summary with regulatory, companies. while that Intersect quarter additional the ended is an and chain, device medical our supply our and the Medtronic. in experience for He a He at escrow Meier, our proceeds with route us Randy. net enabling We GAAP technology $XX.X he customers, placement Randy ahead on financial for call statements will that human strategies to talk private brings our received client Randy of in reflecting business, President Then quality, closing, available plus and Our and up towards In our million, new quarter, a full our delighted ENT, lead recently company commercial discipline of holders. was aspects investments. joins note $X.X over the by on believe our will with will value studies. and placed the therapeutics the I'll million healthcare the ensure commercial quarter of adjustment $XX about our $XX.X A from our retaining I us finance release to I'll leadership incremental and needed direction production. million turn of commercial of notes fair the brings website. that start introducing CFO. an like cash, of medical certain chose equivalents third to of completed join and warrants. our Today, funding Randy acquired operations as briefly cash I'm X we to fourth million and

markets, in the XX med-tech customers As the med-tech of X X of we you the wearable companies. companies and X consumer and wearables know, representing have largest XX largest

customers We our are product in them with products, them. our and so, enable we increasing trials of using on run doing solution. our And our their to requirements ROCE with all engagement working for solidifying will

wellness are biomarkers We we This fitness Recently, clinical first Bioptics working received provide from solution. our manufacturing on pharmaceutical use our for management, health with trials, and monitoring, monitoring, partner. lifestyle version will core cases, the bands customers several including our and near-final our patient

wellness Our for fitness, use customers worker, nondiagnostic other clinical for including certain sold first will and solution cases, be general loan health wellness, applications. trials, general and health and and to

nonclinical solutions our solutions general biomarkers clearance classification consultation we we signs. Working will for initially, predicates predicates. use U.S. for for without wellness biomarkers regulatory introduce for existing believe our noninvasively for customers, grounds med regulatory pursue in our our of monitoring approval our needs This plan there's key satisfying terms novel strategy, customers that products vital sooner, a those health are de market seeking existing the tech our to we their to make cases. to solutions novo in with as and plan with and In available customers to our by XXX(k)

of we our During of with believe on and Bioptics I the the quarter, development track Pro both. Bioptics we our solutions. advanced are versions

chips micro-transference as from costs. opening higher-density photonics for We and photonic laser We us spectrophotometer density chip. AR for capability as will size lasers NextGen even to us technology first opportunities and VR our including funding next-generation the reduce the In solutions, biosensing support in continue clothing, Ireland the disruptive up is ultra-small glasses, this to received technologies create allow health this well silicon the more work applications. that monitoring, this believe headsets, Foundation breakthrough manufacturing announced well. other quarter, wearables factors. We on In and the This our innovation further smaller even on future, allow work for lowering commercial form and of increase we fund. believe Science the for the to world's will as we

promising trials. outside larger we monitor results, free-living of band population. core biomarkers human and larger announced Biosensing key hydration, XXXX. measure body the quarter, free-living of our controlled to pressure studies quarter expanded we Now initial Bioptics laboratory these I'll biomarkers. and talk expanding third our to study the in setting. studies about studies that These temperature, our blood with continue are recently fourth super our completed studies These In We should following remotely test and of to capability a of the be follow-on

also heart hypertension, study, blood Finally, factor for Many such blood while of monitoring disease effortless a knowing human for internally regular health of from company important from for provides results that serious and who problems device where individuals controlled are benefit our suffer people and very as demonstrated we risk announced pressure. will without often results believe, recently it, a we our the I strokes. it making pressure

protocols. will first isometric will and we and controlled quarter, which pressure exercise-based include study, blood begin This monitor aerobic human will our third-party in XXX participants

the study with arterial in-line planned in monitoring of an participants an Additionally, XX reference catheter accurate period. with is also pressure

Turning to have the priorities X we XXXX. for the remainder future, of

for Bioptics priorities we've the for in-house achieve. to doing what XXXX Our we with we've studies the future. believe is some biomarkers. pleased first form may plan for The to we I the that to wearable blood customers and that utilizing truly Pro has foundation sample able human potential change to lives alcohol, will been form for device our design we the priority studies module people's know scale we've an lead humor will to initial finally, am tryouts. complete next, FDA to if been will and What benchtop-based third-party-controlled in better. human pressure, been glucose, our I achieve which our the Bioptics very studies, extraordinary The work wonder the our our and These And that for the basis to work lactate is which technologies. utilize I our as And the easy. plan our studies will study. on we utilize of module units study for tremendous their will isn't doing in goals. Pro

human our will here increased our succeed performance gathered technology. I the sit from the studies, evidence today, I we body due which that As of of to validate believe

soon will be hands. the our have this will products commercial a changer for And point We us. are game at where in that I'm we confident customers'

like Randy I'd you Randy. to President Now and introduce CFO, our Meier, to

Richard Meier

Revenue and Thank related In to services us. on quarter, thrilled been revenue that performance even are of as a $X.X revenue not the incurred I'm in is was note third agreed-upon resulting afternoon, It and expenses you, has our of quarter from everyone. revenue opportunities is and Andrew, Cost profit the obligations to that based $X.X solely customers gross joined ahead important engineering have good was for acceptance. lay and million, Rockley mutually million. revenue to the of loss $XXX,XXX. recognized. recognized recorded was if nonrecurring

the offset ago were result a Third-quarter in in quarter, were R&D the professional a costs XXXX. In million, third engineering were personnel severance sequential the quarter slight from decrease $XX.X expenses from and in reduction activities used reduction due deal slight in professional quarter million. to the of the a million, Cash million $XX and sequential year by $XX.X quarter primarily due XXXX decrease other reduction payments. of million quarter second a a in fees, from a of services. was third-party a SG&A expenditures expense The in $XX.X a $XX.X increase in R&D the expenditures to and XXXX slight million. the operating of reduction totaled $XX.X second in

quarter, The $X.X focused directly the biosensing preserve the This reduce During positions company technology. and equivalents, of the company reduction Bioptics commercializing company solutions. workforce cash on also investments. spending positions. not our programs cash, The impacted burn. ended and of quarter not commercialization programs on current in million the to a The with capital approximately were on immediate that in future were focused the directly included cash implemented XX reduced

the quarter, did our access E-lock. the funds During company from not

closed a As cash XXXX, repurchase and provided proceeds the notes were quarter, a And principal original additional the May transactions. access secured end expenses, notes aggregate million October the the of noteholders. from R&D of U.K. to credit. was $XX payment that held of million million X, company $XX.X believe financing senior with with we company with $XX reminder, in to due senior the all company the we million, $XX million to approximately senior million aggregate the the tax secured convertible The $XX.X of of that funds which along received released continue bridge notes. of is On used approximately will to approximately X Subsequent principal funds result in receive issued and bridge to be of secured fees, XXXX. to the XXXX, $XX.X after escrow approval in notes issued the we original XXXX, on approximately XX, warrants. in convertible in company issued in Then October

$X.X be the is in first quarter to about the the certain priorities our XXXX. revenue to For year will achievement customer the our $X.X the we Upon of full the of revenue achieved range. milestones. assumes call, provide earlier in outlook million XXXX, spoke Andrew our in company million plan believe This

market Finally, with bringing to team I technology I'm to at health our Andrew revolutionary everyone dedicated for around customers and general our pleased the well-being forward a goal of and world. to the the working Rockley. realize join and look of

the operator back We have the to call will call us, up ahead is over deal turn future work for open of questions. a in of now the great the to I but sight.

Operator

of line Company. Quinn Instructions] first with Needham comes & question Bolton [Operator the Our from

Quinn Bolton

guys. cash on and focuses for Hi, my balance the really my I question Thanks taking guess question. sheet. flow

significant While sheet balance loss pretty your a technology has is still impressive pretty per stressed. become Cash quarter. the is at

costs raised Or net some started I It a be X give per transactions, question, burn XX.X%, sounds the One, quarterly on we million about I expected so level? post some us but do quarter. of run seems What's EBITDA just math, a sheet. sort balance than taking with should guess under Second if on your I sense? you on to the the to Randy, the financing be mentioned you got basis. And quarterly you reduce actions? the of rate $X higher those that quarter cash OpEx Can you actions questions. thinking what

count to do And And so give raise get where perspective convertible to for financing questions, diluted you us of to you there additional to some funds? breakeven? Sorry can you and where share a can the points. recent significant are flow like you think lastly, comes sense X looks you because the from cash fully number raise a those the need all address shares but underlying how transactions? And are much hopefully, warrant then it

Richard Meier

Sure.

in the company I an First look and asking is we you all, appreciate I in position with as aggressive forward. forward think question certainly a of everyone forward working to the move the to fashion. move company Look,

taken cost a really the indicated, year-end. the steps the future. the in company At company will us to & as items, reduce so, now. a of In be And handful as to this direction our company. to what we we doing dramatically value adviser, relative right to indicated to will Company, with cash deliver continue that of guidance more Jefferies comments, in is in to we importantly, we've continue operating not and that juncture, raise work Andrew outlined, on burn As prior create to overall our we're focused capital any the some providing going move to to position our

and have in the taken deliver to done potential as so at on that communicate to we to that the well say can effectively we terms moving raised. investors future. Suffice dramatic ourselves action ourselves the processes the I the quarter with cash effectively hand capital as of raise our to think, obviously, manage continue position technology we on beginning into that appropriately the to it capital you've math of

filing share certainly, so In terms But our what tomorrow, be as we'll count, reflected outstanding, that will Tough the is of today our your so about and to count fully you million fully be or diluted XXX share of shares posted that. in Q tell be diluted make the convertibility and there's we the in number certainly that. expect under certain dilute our fully financings, But circumstances shares. of we further diluted. would light the do of would will would you of on a warrants all keep

million, shares on XXX and the outstanding level you'll of see would As basic of shares. the about quarter, end about $XXX million today the a be

Quinn Bolton

OpEx want I U.K. And you've give quarter? to cash you December maybe trend R&D you. that a guess at projection, in least So something follow-up line you can don't Or then or us receive flow next to if know early have think Thank potentially the you question. give may some sense quarter? a year? credits. some December I Is something the push in here sight where been tax into you that think that awaiting is may of

Richard Meier

of tax rate that. of million we have government since consideration, opportunities work to little next in be with forward. the And will bring the from and to guidance as we comfortable not continue to will them our to are I secure in aggregate responses them. Clearly, end to so operate with we’ve we additional release, through we -- a, run certainly to in favorable year the gotten as press tax the expenses into far the work continue we Again, to feel is And and than indicated we capital that continue Sure. are UK moving recover and far, the refund, reduced year look less going that dramatically, the we quarter think been giving reduced in comfortably as had just operating can we we here, $XX to

that We do business timing, what recover will the to terms anyone’s we but is what is projecting confident that’s In of guess. feel government of we going in doing. are

Operator

comes question the Gerra Bard. next with Tristan Our of from line

Unidentified Analyst

on Tyler is This Tristan. for

the in weak consumer or business, projects the cancellation have given the On side you delays seen any macro environment? of

Andrew Rickman

Randy. No, we've all regard programs with our with to consumer take they any seen I'll cancellations that, customers, not continue.

Unidentified Analyst

companies as that, And adoption devices? seeing OEM you consumer the to a their medical medical follow-up, any Great. pushback from device bring on Okay. then could competition that given are

Andrew Rickman

on, we the because with, kind in the hospital see like, in consumer you the consumer uses. for medical of example, if You're not associated taking regulatory field, don't risk customers and

So the with don't other. X compete markets each appear to

Operator

from of comes question line the next Our Cowen. Silverstein Paul with

Paul Silverstein

Thanks. Andrew, a role got questions my I've bunch peers on of related confusion. through

consumer burner. deep, I wearables days to deep had thought XX that you So deep, moved I the back understood from the ago

the You resources the you were there better amount driven went had balance financial help any currently of to September you that the or have. I of understand, you the sheet is you still pursue you of I now What wasn't function XX% commercializing that if pursuing was of focus part believe, understand? on consumer is your if million 'XX that was just the still the that in or My opportunity? by balanced? Or it by you. connection as Rockley. companies year, the of pursuing is more me on alone is I of them? fit engaged given technology? were being you referenced with number pursuing recently the with MedTech that I'm consumer particular, money, if I Can economics -- was focused guidance is for decent actively trying let decision wearable it still wearable NRE talking number, meaningfully which And your it longer challenges from XX-plus assume considerable last expending in from that, medical 'XX. but one for me assume wrong, resin -- your the are of the especially as no wearable are conservable of solutions $XX still clearly on companies said revenue assume I to fact for Is all investments Are question is those in or about, with of as generated technology, more the devices, correct they anything does a the back prospect but far I'm companies? that your not

Andrew Rickman

tech balanced was over wearable like, are utilization year this able if the that achieve to What be with med that trials were with we market. agnostic, for the to to ultimately has medical in pool. device technology. traction more you utilize applications. a And variable accelerate it customers of applications bioptic the It regulatory-approved, the and it professional needs still but dramatically course It's a to of will we FDA-approved, in device,

So we've accelerated piece that it. of

we Now you like, et the and what studies, consumer not we've company. pursue a And spectrophotometer the with of if cetera, terms algorithms associated goes into as the all wearable our customers, works ASICs it and and is and professional human continue them. consumer stopped of any to for that, in the working same

terms customers In for trials own start period, timing, markets their in to with. of Bioptics for the is, our our -- band quarter, this this the ready professional in

ahead of beginning so way the at we year. And back where the that is of expected

consumer that they we're the those into the devices, that obviously, specific their customers, tech and putting that timing help process of devices, on and not their launch making with. Does when terms In any all taking on design-in is then to and dependent update between to them than devices, consumer? our them to continue any of questions the providing with customers the that previously we working with Med were we other work say

Paul Silverstein

in could assume given of but asserted -- better I'm and XX economics days that I was trying to And a Kind far ago, sheet I you med be there again, Andrew, the tech. not balance device argumentative, tech drove and to but on backburn place med was to equation misunderstanding. the the that maybe to here parallel really aspect, prioritize consumer opportunity heavily my but and in the was focus it you the to

Andrew Rickman

technology, that And that's also have validating thinks obviously, very one about if spectrophotometer we photonic studies the we're the all complete, blood the the our We've capability if successfully, really, and you you we've a revolutionary have and the been not hardware that of the which the about devices like, really results, development think of algorithms, is devices. to I human the what you silicon development the only to the doing. pressure, published to and solution. in was we've But these been algorithms latest got breakthrough. conduct train been excited huge doing one and of

be need consumer, for you med solution. so And it professional, that customer, whether any tech, complete

Essentially Bioptics market, at to designs will, professional us for look before the continue bans those we that our, for the we just market. launch, about are allows as algorithms companies. to the bioptic for the studies. platform to bands, as essential you those So that And and consumer develop med validate of the regulatory bans qualified tech through the reference all that if human special are that the

Paul Silverstein

the Just module both packaging. to the and same MedTech be is difference consumer, clear, the it's in

You're tech entire in med market, designing device. the word you're the device, entire

Andrew Rickman

Yes. the stack full And on that. top of

Paul Silverstein

those announced There Here's not I planned investments the that various, If plus happened Why Why correctly, there one. know more your But you NRE go numbers. a go either. did you I to What 'XX away. was understand the our they haven't we're happened? one 'XX reference. than 'XX. away? they what in used think others happened They're investments? NRE assume to not They're planned question. gone in money by did big I away? in was what clearly to I the

Andrew Rickman

what I go with to of you're through we'd to think NRE in And recall, optic carefully the mean -- referring So that that the if referring was the back think reprimanded But have you I by the partner, associated fiber the may will to. platform Henton, -- the our I -- you're communications. be include numbers commercialization

Paul Silverstein

service. big I'm companies the was it referring plus was what device a wearable NRE company consumer other that memory more money business. to. Less not I'm the or That's the I'm you. not to market. referring datacom to referring to one interrupt me in let my Andrew, --

Andrew Rickman

NRE all be So on customers to those in with say quantum that with position we in continue the those -- we I'm NRE, been with, the to regard work to the to customers. a we've of continue engaged invoice that continue those and than and engaged we customers, with comment not to other to customers,

Paul Silverstein

So point are we in whatever shouldn't fact this longer planned whatever apparently that no at the read time. point There's read-through just to anything those understand, present prior. shouldn't reinvestments not those investments from read they're I'm trying anything Again, we from were a that. were

Richard Meier

Paul, NREs maybe in just help revenue, meeting certain because of here indicated some in attributes the are qualifications. work let I the think to as generate revenue is continue a certain most of and me And I you and we of jump clarify on can the biomarkers. is things milestones technology number additional saying we based on and the what Andrew the and the

to We broad technologies of and continue with those spectrum work delivering customers on biomarkers. a

our that integrate the consumer, they away. advance in with things is necessarily commercially. to in related tech and market. than We've and today. is And allocating That or are the one with technology in Andrew to into mean we opportunities to go to It's devices can so is our X go will, Certainly, and the about, we're X in today the medtech What we delivering we and to we may time blood we will focus, the care, where priorities focus conversations already the health talked diabetes enable to our directly to maybe our health patient pursue to today haven't customers with And indicated, the focus. across professional, to clarity others a on relationship pressure, gives of little we're talk to way are continuing are care. the the appropriate of may existing with think as as having other more the a market market, which certainly cardiovascular certain the and someone certainly, That's med us monitoring advance the there's market our that will every terms X with. more have relationships. market us well-developed plethora that what other go resources a next decided on will the technology and to gone over that months. you glucose clinical we doesn't designs. there's consumer clinical segment so and we're the focused and customers trying to leveraging how we different to monetize really whole areas do. and lead Hopefully, that's their through around will to segment where to if market most ability continue see consumers, lactate, appropriate of What be our the not certainly of that us enable more And existing to technologies a you that value side, customer to create

Paul Silverstein

it little expect of the Medtech sheet I your balance last question line, and of that. as pressures? pass on given or Is one SG&A Yes. appreciate would or outside all all this One R&D investment very then on and virtually I'll on. today focused X medtech with

Richard Meier

of go a qualified studies technology qualifications, think deliver is offering, qualifications and to think what device. have to I the then saying I through this the unregulated Andrew, What to on you to defer get but side a to back clinical the Medtech the clinical professional we're

an focusing that where exist of and that them there. that's yes, along through our generate from most or to margins company. to But a because the NRE specific doesn't other arrangement the market energy So of talking opportunities customers pursue revenue avenues we're to co-development having the arrangement preclude into other the either and way, us

Paul Silverstein

in earlier, gotten haven't studies the the yet you're you yet? currently or in preclinical the studies, referenced you to clinical And clinical studies you're

Richard Meier

the side, the you'd you med a studies. studies think of where tech initiate human between biotech I on be difference preclinical sort orientation, in clinical sort and of

technologies device validating FDA to we that the So clinical studies to clear be so we are can develop we a in would the proceed that approvable in a an to line in setting. humans

Paul Silverstein

before time amount the be required goes minimum perfectly of the everything commercial [inaudible]? what's to that If according plan, would

Richard Meier

I think what with be point, XXXX. early at probably we'll on that's this updating folks outlook in our

things so. So to line right sight Andrew, of probably, to just of the give you, I now. side to that not on going we're defer a technology

Andrew Rickman

you. Thank Thank Yes. you, Randy.

with think that I our regulatory approval. our associated said in path release we've the

press And in that for so are we've as release. preparing expressed the we

Operator

Our next Tim line from Northland. of question comes the Savageaux with

Tim Savageaux

afternoon. good Hey,

little talked gearing wonder for year. throughout kind Just I QX a a year up on pushed following up back about Obviously, the But been to degree. mean of I next if that sample MedTech view. that's bit. some you we that on in to into production production some your going that volume to then expectation? And customers might you equate comment are initial your the volumes 'XX referenced of relative ramp if to in degree you where volumes

the expectation. was that original think I

how has you that what guess? some volumes, mean So of give if by sample can us changed? I And indication you

Andrew Rickman

take do that? Randy, to want you

Richard Meier

Sure.

I the and a to go will, think itself and and trialing our with down indicated, constraints, shift we we be site of customers sampling products in shouldn't terms believe will development, of finished delivering focus from as product which clearly, need device get good, road. focused we balance clearly if a that too a the sheet our you in to to just new on quantities are positioning through far the process the

customer But quarter really here pressure we and more side we're the year, have today and lactose. overall the deliver pursue on terms and alcohol, volume. meet trials production in necessary we'll the glucose, visibility So expectations a to that them of as much first as were some need prior what well sampling to, fourth first fulfill human study modest approach the of the quantities taking next of quarter in I the of meet of into blood fence the foremost, into and less and of both some unit in to trialing Nano terms

and of move overall future but enough data meet company So our current into forward. meet rather in the volumes, we demand developing terms the expectations I the adequate need to think modest to

Tim Savageaux

a we And at OpEx headcount XX% about Okay. for like backing for least rate? looks it this on that's me. Should reduction. that be And run

Richard Meier

a because so of think bit draw of company worker. to have a from I terms line typical and expenses the talent manufacturing sort we operating that is swag little to than, just resident third-party focused headcount in a a development, in of is other today the on expenses technological just of more really the trying sight say, reduction

get some we the But right the terms your and So that entered little the that priorities continue to of you buck bit now. very costs probably the in of our monitor deliver company we bang a to rationalization have into. more resources for on closely

with be not of we're tightly. sure to to clearly, resources, would But income So have manage the XX%. I'm going our availability it statement pretty

Operator

question Company. next & Our line comes from Needham again of Bolton Quinn with the

Quinn Bolton

by opportunity, CE glucose? to XX,XXX trials entirely customers in Bioptics going there you follow-up Tim's glucose Are those could be alcohol? the who give some sense or in units? thousands the do Tim's of sort selling guess it's trials think trials, of question. lactate is your funded side. Rockley that for talk the then that's thousands a on for and sample it and probably I of about ban as of is volumes just Is medical I And question, prepare volumes, were if talked or does in as probably But to customer in some prepare wondering effectively XX,XXX, to the on kind the does lactate goes mean? past what then of you when those the medical to the samples will of you about to going be who sample When out to device you be device will you -- the tens units? Just the lower

Andrew Rickman

Randy? take I this, Should Okay.

Richard Meier

Yes, sure. Go ahead.

Andrew Rickman

for volume thousands customer units. the their and on the of hundreds typically So trials validation are to side trials in

the of measuring for also that's that or this the human doing for the us run the example, through But human for and and doing identical biomarker while how internal with is blood develop algorithm things verification standard the we're them particular that one there algorithms the we're we studies. measure developing with subjects way algorithm. we've the for allow of On said do gold we biomarker, that biomarkers, development studies trials algorithms. basically our to period These pressure devices each the third-party algorithm the have that that's how that individual validate to qualification studies validate, the a we the proceeded is independently we're we the of that in in those

parties, and algorithms deliver are to that and we customers, third biomarkers. contracted our of So the for position we've not a with develop which ourselves in all completed people the are

other on if says to the biomarkers mentioned. by parties because That more for already with we on are instrument validating meets just algorithms device what glucose and activities We're on this are as we've develop well with they're additional focused limited collaborate the lactate that number in -- is your of to biomarker XX. and and additional for the the not not said, so limited future. that biomarkers And customers' it a that themselves in you it's an customers our to terms like, an position in wrist, or of metabolites

have customers activities. in our expressed and could those So participate

Richard Meier

data of say, third to we option to and to of to that do studies. wants things. independent partner that sort going to a internal enables studies I'd couple now do validate collection the like clinical company add do That's initiating the technology. we're an that forward. the What with the potentially parties is The have

we So your could bit studies more again, ways it we an with get different those. a we we do market to that those answer little someone, with go of to when there ourselves. could is variety a There's partner to clearly, could opportunity or question clinical

Quinn Bolton

on at Bioptics that's like just quarter like for there's quarter. band Great. And year. fourth then, sounds band probably $XXX,XXX the guidance is of, the think, midpoint, sounds I NRE the production next in still It the fourth bioptics all meaningful Randy, that early about no it

Richard Meier

that that my consistent just of view that consensus for gave that be agree we incremental the we'd revenue little with a quarter. we clarify I The point third of the bit of a we with above would understanding kind that is the in quarter was fourth where bit. guidance that And be thought the coming But would revenue would from. your so generated

Operator

for Thank the to of have question-and-answer turn and I'd we like you. session. the call remarks. the Andrew to closing gentlemen, Ladies Rickman back reached end

Andrew Rickman

for the quarter at the to we're and speaking looking you throughout all everybody. you much, you call, forward very joining to our Thank on and us next Earnings Thank Call.

Rockley Photonics (RKLYQ) 13 Nov 222022 Q3 Earnings call transcript