Fluidigm Announces Third Quarter 2020 Financial Results
11/05/2020 - 04:05 PM
Third Q uarter T otal R evenue I n creased 50 P ercent to $ 39 .9 M illion
Third Q uarter P roduct and Service R evenue I ncreased 34 P ercent to $35. 3 M illion D riven by COVID-19 T esting
GAAP N et L oss in the T hird Q uarter Was $6.0 M illion ; Non-GAAP N et I ncome W as $2.5 M illion
SOUTH SAN FRANCISCO, Calif., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Fluidigm Corporation (Nasdaq:FLDM), an innovative biotechnology tools provider with a vision to improve life through comprehensive health insight, today announced financial results for the third quarter ended September 30, 2020.
Financial Highlights
Third Quarter 20 20
Third quarter revenue increased 50.4 percent to $39.9 million from $26.5 million in the third quarter of 2019. Product and service revenue increased 34.4 percent to $35.3 million . Microfluidics product and service revenue increased 88 percent driven by COVID-19 testing. Total revenue included $4.5 million of other revenue. GAAP net loss for the quarter was $6.0 million , compared with a GAAP net loss of $12.9 million for the third quarter of 2019. Non-GAAP net income was $2.5 million for the quarter, compared with a $6.2 million non-GAAP net loss for the third quarter of 2019. “I am extremely pleased with our exceptional performance this quarter with strong execution on our COVID-19 testing and clinical research strategies yielding sequential growth for both the microfluidics and mass cytometry businesses,” said Chris Linthwaite, President and CEO. “FDA Emergency Use Authorization of the Advanta™ Dx SARS-CoV-2 RT-PCR Assay at the end of August drove growing awareness and healthy adoption of saliva-based testing, with new instrument placements across multiple customer segments including clinical and public health labs, and academic medical centers.”
“In the third quarter, we closely managed our cash and operating expenses while making progress on milestones tied to collaboration payments,” added Linthwaite. “Moving forward, we are focused on expanding our diagnostic reach as our customers utilize microfluidics to address the gap in COVID-19 testing capacity. Longer-term, we are also executing on a product roadmap for microfluidics and mass cytometry to drive growth from translational and clinical research and diagnostics customer segments.”
A reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.
Third Quarter 20 20 Results
Revenue by category:
Category Revenue by Category Year-over-Year Change % of Total Revenue Instruments $12.7 million 38% 32% Consumables $16.6 million 44% 42% Service $6.1 million 9% 15% Other $4.5 million N/A 11%
Product and service r evenue by market:
Mass cytometry product and service revenue decreased 3 percent to $15.1 million from $15.5 million in the prior year period due to lower sales of instruments, partially offset by higher sales of consumables and services. Microfluidics product and service revenue increased 88 percent to $20.2 million from $10.7 million in the prior year period primarily due to higher sales of instruments and consumables. R evenue by geographic area:
Geographic Area Revenue by Geography Year-over- Year Change % of Total Revenue Americas* $23.7 million 113% 60% EMEA $8.8 million (3)% 22% Asia-Pacific $7.4 million 17% 18%
* America s geographic area includes O ther R evenue of $ 4 . 5 million
Product and service margin: Product and service margin was 58.9 percent in the third quarter of 2020 compared to 52.6 percent in the year ago period and 52.5 percent in the second quarter of 2020. Non-GAAP product and service margin was 68.3 percent in the third quarter of 2020 compared to 65.2 percent in the year ago period and 67.1 percent in the second quarter of 2020.
The year-over-year increase in non-GAAP product and service margin was primarily due to sales of COVID-19 related consumables and lower inventory reserves. The increase was partially offset by a higher mix of microfluidics instruments, as well as lower prices and lower product volumes for mass cytometry instruments. On a sequential basis, the increase in non-GAAP product and service margin was primarily due to sales of COVID-19 related consumables partially offset by a higher mix of microfluidics instruments.
GAAP product and service margin, both sequentially and on a year-over-year basis, was positively impacted by fixed amortization over higher revenue in addition to the factors described above.
Cash and cash equivalents, and restricted cash as of September 3 0 , 20 20 : Cash and cash equivalents and restricted cash as of September 30, 2020 totaled $73.4 million , including approximately $20 million of net proceeds from sales of common stock under an “at the market” equity offering program and $10 million of unspent milestone payments under our National Institutes of Health (NIH) Rapid Acceleration of Diagnostics (RADx) contract. Cash and cash equivalents, available for sale securities, and restricted cash as of September 30, 2019 totaled $64.8 million .
Operational and Business Progres s
Microfluidics and COVID-19 testing progress
Received FDA Emergency Use Authorization (EUA) for the saliva-based Advanta™ Dx SARS-CoV-2 RT-PCR Assay for COVID-19 on August 25. Achieved initial milestone for $11.7 million payment under NIH RADx agreement; executed definitized contract with NIH RADx. Sold 795,000 COVID-19 assays in the third quarter. Sold more than 30 Biomark™ HD instruments in the third quarter. Year-to-date, 43 Biomark HD instruments have been enabled for COVID-19 testing. Announced an agreement with Healthvana Inc. to provide clinical laboratory customers utilizing the Fluidigm® saliva-based Advanta Dx SARS-CoV-2 RT-PCR Assay with the option to deliver test results faster via Healthvana’s mobile platform. Introduced the Fluidigm COVID-19 Campus Safeguard Program to support saliva-based testing needs for U.S. colleges and universities, with participation already at Oklahoma University, University of Pennsylvania, and Washington University in St. Louis. Fluidigm COVID-19 testing adopted by clinical labs and public health and academic medical centers including: Dante Labs in Europe; Millennium Health, which has partnered with the U.S. Health and Human Service to provide surge testing through the federal Community-Based Testing Site program; hospitals in Greece; ImmunoGenomics; and Vero Diagnostics. Mass Cytometry and Imaging Mass Cytometry P rogress
Record sales of the Maxpar® Direct™ Immune Profiling Assay™ for COVID-19 immune profiling studies. Launch of a new Innovative Solutions offering by Fluidigm Therapeutic Insights Services, the robust IMC™ Cell Segmentation Kit, which facilitates an end-to-end workflow for Imaging Mass Cytometry™ (IMC) single-cell data analytics. Use of CyTOF® technology in 16 COVID-19 publications and five COVID-19 clinical trials through September. Use of CyTOF technology in 113 National Clinical Trials through September, including 25 initiated in 2020, with three of those utilizing Imaging Mass Cytometry. Total publications and reviews involving CyTOF technology exceeded 1,300, including 65 that involved Imaging Mass Cytometry. Conference Call Information
Fluidigm will host a conference call today, November 5, 2020, at 2:00 p.m. PT, 5:00 p.m. ET, to discuss third quarter 2020 financial results and operational progress. Individuals interested in listening to the conference call may do so by dialing the following:
US domestic callers: (877) 556-5248 Outside US callers: (720) 545-0029 Please reference Conference ID: 7187059
A live webcast of the conference call will be available online from the Investor Relations page of the company’s website at Events & Presentations . The link will not be active until 1:45 p.m. PT, 4:45 p.m. ET, on November 5, 2020.
After the live webcast, the call will be archived on Fluidigm’s Investor Relations page at investors.fluidigm.com . In addition, a telephone replay of the teleconference will be available approximately 90 minutes after the end of the call.
The replay dial-in numbers are:
US domestic callers: (855) 859-2056 Outside US: (404) 537-3406 Please reference Conference ID: 7187059
The telephone replay will be available until November 12.
Statement Regarding Use of Non-GAAP Financial Information
Fluidigm has presented certain financial information in accordance with U.S. GAAP and on a non-GAAP basis for the three-month periods ended September 30, 2020, and September 30, 2019. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the company’s core operating results. Management uses non-GAAP measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Fluidigm encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release.
Use of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding opportunities for Fluidigm technology and products, including growth from sales of Fluidigm’s diagnostic tests, increasing adoption of such tests, and a product roadmap encompassing new customer segments. Forwardlooking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including but not limited to the potential adverse effects of the coronavirus pandemic on our business and operating results during 2020; the suitability and acceptance of our tools and technology by the research community pursuing solutions for the novel coronavirus pandemic; our ability and/or the ability of the institutions utilizing our products and technology to obtain FDA and any other requisite approvals to use our products and technology for diagnostic testing purposes; customers and prospective customers continuing to curtail or suspend activities utilizing our products; interruptions or delays in the supply of components or materials for, or manufacturing of, our products resulting from the pandemic or other factors; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; risks relating to reliance on sales of capital equipment for a significant proportion of revenues in each quarter; potential product performance and quality issues; the possible loss of key employees, customers, or suppliers; intellectual property risks; competition; uncertainties in contractual relationships; risks relating to company research and development, sales, marketing, and distribution plans and capabilities; reductions in research and development spending or changes in budget priorities by customers; seasonal variations in customer operations; unanticipated increases in costs or expenses; and risks associated with international operations. Information on these and additional risks and uncertainties and other information affecting Fluidigm's business and operating results is contained in its Annual Report on Form 10-K for the year ended December 31, 2019, and in its other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Fluidigm disclaims any obligation to update these forward-looking statements except as may be required by law.
About Fluidigm
Fluidigm (Nasdaq:FLDM) focuses on the most pressing needs in translational and clinical research, including cancer, immunology, and immunotherapy. Using proprietary CyTOF and microfluidics technologies, we develop, manufacture, and market multi-omic solutions to drive meaningful insights in health and disease, identify biomarkers to inform decisions, and accelerate the development of more effective therapies. Our customers are leading academic, government, pharmaceutical, biotechnology, plant and animal research, and clinical laboratories worldwide. Together with them, we strive to increase the quality of life for all. For more information, visit fluidigm.com . Fluidigm, the Fluidigm logo, Advanta, Biomark, CyTOF, Direct, Imaging Mass Cytometry, IMC, Immune Profiling Assay, and Maxpar are trademarks and/or registered trademarks of Fluidigm Corporation in the United States and/or other countries. Fluidigm products are provided for Research Use Only. Not for use in diagnostic procedures.
Available Information We use our website (fluidigm.com ), investor site (investors.fluidigm.com ), corporate Twitter account (@fluidigm ), Facebook page (facebook.com/Fluidigm ), and LinkedIn page (linkedin.com/company/fluidigm-corporation ) as channels of distribution of information about our products, our planned financial and other announcements, our attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and we may use these channels to comply with our disclosure obligations under Regulation FD. Therefore, investors should monitor our website and our social media accounts in addition to following our press releases, SEC filings, public conference calls, and webcasts.
Contact :
Investors: Agnes Lee Vice President, Investor Relations 650 416 7423 agnes.lee@fluidigm.com
Media: Mark Spearman Senior Director, Corporate Communications 650 243 6621 mark.spearman@fluidigm.com
FLUIDIGM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue: Product revenue $ 29,210 $ 20,666 $ 65,596 $ 68,728 Service revenue 6,131 5,630 16,457 15,875 Product and service revenue 35,341 26,296 82,053 84,603 Other revenue 4,520 200 11,483 200 Total revenue 39,861 26,496 93,536 84,803 Costs and expenses: Cost of product revenue 12,773 10,520 31,896 33,009 Cost of service revenue 1,769 1,938 4,531 5,403 Cost of product and service revenue 14,542 12,458 36,427 38,412 Research and development 8,128 7,125 25,275 23,362 Selling, general and administrative 22,655 20,729 65,966 65,687 Total costs and expenses 45,325 40,312 127,668 127,461 Loss from operations (5,464 ) (13,816 ) (34,132 ) (42,658 ) Interest expense (885 ) (444 ) (2,682 ) (3,636 ) Loss on extinguishment of debt — — — (9,000 ) Other income (expense), net 107 205 (248 ) 920 Loss before income taxes (6,242 ) (14,055 ) (37,062 ) (54,374 ) Income tax benefit 243 1,168 2,068 2,269 Net loss $ (5,999 ) $ (12,887 ) $ (34,994 ) $ (52,105 ) Net loss per share, basic and diluted $ (0.08 ) $ (0.19 ) $ (0.49 ) $ (0.79 ) Shares used in computing net loss per share, basic and diluted 72,486 69,469 71,294 65,792
FLUIDIGM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 30, 2020 December 31, 2019 (1) ASSETS Current assets: Cash and cash equivalents (Note 2) $ 72,345 $ 21,661 Short-term investments (Note 2) — 36,978 Accounts receivable, net 17,613 18,981 Grant receivable 7,456 — Inventories 19,560 13,884 Prepaid expenses and other current assets (Note 2) 5,689 4,592 Total current assets 122,663 96,096 Property and equipment, net 7,531 8,056 Operating lease right-of-use assets, net 38,469 4,860 Other non-current assets (Note 2) 4,904 5,492 Developed technology, net 42,955 46,200 Goodwill 106,455 104,108 Total assets $ 322,977 $ 264,812 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 10,971 $ 6,510 Accrued compensation and related benefits 9,122 5,160 Operating lease liabilities, current 2,697 1,833 Other accrued liabilities 6,565 7,515 Deferred revenue, current 13,436 11,803 Total current liabilities 42,791 32,821 Convertible notes, net 54,121 53,821 Deferred tax liability, net 9,041 11,494 Operating lease liabilities, non-current 38,607 4,323 Deferred revenue, non-current 7,684 8,168 Deferred grant income, non-current 18,224 — Other non-current liabilities 536 573 Total liabilities 171,004 111,200 Total stockholders' equity 151,973 153,612 Total liabilities and stockholders' equity $ 322,977 $ 264,812 Notes: (1) Derived from audited consolidated financial statements (2) Cash and cash equivalents, available for sale securities and restricted cash consist of: Cash and cash equivalents $ 72,345 $ 21,661 Short-term investments — 36,978 Restricted cash (included in prepaid and other current assets, and other non-current assets) 1,015 2,075 Total cash and cash equivalents, available for sale securities and restricted cash $ 73,360 $ 60,714
FLUIDIGM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2020 2019 Operating activities Net loss $ (34,994 ) $ (52,105 ) Depreciation and amortization 2,988 3,484 Stock-based compensation expense 10,358 8,292 Amortization of developed technology 8,929 8,400 Loss on extinguishment of debt — 9,000 Loss on disposal of property and equipment 191 52 Other non-cash items 2,971 3,310 Changes in assets and liabilities, net (2,127 ) (10,124 ) Net cash used in operating activities (11,684 ) (29,691 ) Investing activities Acquisition, net of cash acquired (5,154 ) — Purchases of investments — (52,719 ) Proceeds from RADx grant 11,151 — Proceeds from sales and maturities of investments 36,810 16,000 Purchases of property and equipment (2,010 ) (2,031 ) Net cash provided by (used in) investing activities 40,797 (38,750 ) Financing activities Proceeds from issuance of common stock from at-the-market offering, net of commissions 20,226 — Payment of debt and equity issuance costs (509 ) (128 ) Proceeds from employee equity programs, net 708 1,134 Net cash provided by financing activities 20,425 1,006 Effect of foreign exchange rate fluctuations on cash and cash equivalents 86 (5 ) Net increase (decrease) in cash, cash equivalents and restricted cash 49,624 (67,440 ) Cash, cash equivalents and restricted cash at beginning of period 23,736 95,401 Cash, cash equivalents and restricted cash at end of period $ 73,360 $ 27,961 Cash and cash equivalents, restricted cash and available for sale securities consist of: Cash and cash equivalents $ 72,345 $ 25,886 Short-term investments — 36,875 Restricted cash (included in prepaid and other current assets, and other non-current assets) 1,015 2,075 Total cash and cash equivalents, available for sale securities and restricted cash $ 73,360 $ 64,836
FLUIDIGM CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In thousands, except per share amounts) (Unaudited) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME (LOSS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net loss (GAAP) $ (5,999 ) $ (12,887 ) $ (34,994 ) $ (52,105 ) Stock-based compensation expense 4,358 3,029 10,358 8,292 Amortization of developed technology (a) 2,993 2,800 8,929 8,400 Depreciation and amortization 972 1,133 2,988 3,484 Interest expense (b) 885 444 2,682 3,636 Loss on disposal of property and equipment 43 23 191 52 Loss on extinguishment of debt — — — 9,000 Benefit from acquisition related income taxes (c) (742 ) (742 ) (2,226 ) (2,226 ) Net income (loss) (Non-GAAP) $ 2,510 $ (6,200 ) $ (12,072 ) $ (21,467 ) Shares used in net income (loss) per share calculation - basic and diluted (GAAP and Non-GAAP) 72,486 69,469 71,294 65,792 Net loss per share - basic and diluted (GAAP) $ (0.08 ) $ (0.19 ) $ (0.49 ) $ (0.79 ) Net income (loss) per share - basic and diluted (Non-GAAP) $ 0.03 $ (0.09 ) $ (0.17 ) $ (0.33 ) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT AND SERVICE MARGIN Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product and service gross profit (GAAP) $ 20,799 $ 13,838 $ 45,626 $ 46,191 Amortization of developed technology (a) 2,800 2,800 8,400 8,400 Depreciation and amortization (d) 419 418 1,215 1,315 Stock-based compensation expense (d) 133 94 312 328 Product and service gross profit (Non-GAAP) $ 24,151 $ 17,150 $ 55,553 $ 56,234 Product and service margin percentage (GAAP) 58.9 % 52.6 % 55.6 % 54.6 % Product and service margin percentage (Non-GAAP) 68.3 % 65.2 % 67.7 % 66.5 % ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP OPERATING EXPENSES Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating expenses (GAAP) $ 30,783 $ 27,854 $ 91,241 $ 89,049 Stock-based compensation expense (e) (4,225 ) (2,935 ) (10,046 ) (7,964 ) Depreciation and amortization (e) (746 ) (715 ) (2,302 ) (2,169 ) Loss on disposal of property and equipment (e) (43 ) (23 ) (191 ) (52 ) Operating expenses (Non-GAAP) $ 25,769 $ 24,181 $ 78,702 $ 78,864 ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP INCOME (LOSS) FROM OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Loss from operations (GAAP) $ (5,464 ) $ (13,816 ) $ (34,132 ) $ (42,658 ) Stock-based compensation expense 4,358 3,029 10,358 8,292 Amortization of developed technology (a) 2,993 2,800 8,929 8,400 Depreciation and amortization (e) 972 1,133 2,988 3,484 Loss on disposal of property and equipment (e) 43 23 191 52 Income (loss) from operations (Non-GAAP) $ 2,902 $ (6,831 ) $ (11,666 ) $ (22,430 ) (a) represents amortization of developed technology in connection with the DVS acquisition (b) represents interest expense, primarily on convertible debt (c) represents the tax impact on the purchase of intangible assets in connection with the DVS acquisition (d) represents expense associated with cost of product revenue (e) represents expense associated with research and development, selling, general and administrative activities