Full Press Release Details
FLUIDIGM ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
SOUTH SAN FRANCISCO, Calif., May 5, 2016 Fluidigm Corporation (NASDAQ:FLDM) today announced its financial results for the first quarter ended
Total revenue for the first quarter of 2016 was $29.0 million, an increase of 9% from $26.7 million in the first quarter of 2015.
Net loss for the first quarter of 2016 was $19.9 million, compared with a net loss of $15.9 million for the first quarter of 2015. Non-GAAP net loss for the first quarter of 2016 was $11.5 million, compared with a $7.3 million non-GAAP net loss for
the first quarter of 2015.
We are pleased with our first quarter performance. Consistent with the guidance we communicated at the beginning of the
year, we saw growth in single-cell biology, production genomics consumables, and new products. We are encouraged by this result, but we continue to expect that full year 2016 growth will be concentrated in the second half of the year, said
Gajus Worthington, Fluidigm President and Chief Executive Officer.
Today, Fluidigm is also pleased to provide additional product revenue detail on
our business, reflecting the restructuring undertaken in our commercial organization over the past 12 months. We now have dedicated teams serving the Research and Applied customer markets. Our Research customers are predominantly academic centers,
while our Applied customers include clinical laboratories, Ag-Bio, biopharma, and contract research organizations. Fluidigm enjoys substantial opportunities within both the Research and Applied markets, and we are confident that this commercial
structure positions us well for growth. We are pleased with the performance of both the Research and Applied teams in the first quarter, and believe this bodes well for the future, continued Worthington.
Financial Highlights and Analysis
revenue of $29.0 million (includes service revenue) by category for Q1 2016:
Total product revenue of $25.4 million (excludes service revenue) by customer for Q1 2016:
Total installed base of approximately 1,700 units at the end of Q1 2016:
revenue of $29.0 million by geography for Q1 2016:
Product margin and cash, cash equivalents, and investments:
Business Highlights Since Fluidigm s Last Earnings Release
Financial Outlook for Full Year 2016
Fluidigm s full year 2016 financial outlook is provided below, and today, Fluidigm is also providing some additional items in its full year 2016 financial
outlook presented below in Additional financial metrics for full year 2016.
Additional financial metrics for full year 2016:
Conference Call Information
Fluidigm will host a
conference call today, May 5, 2016, at 5:30 a.m. PT (8:30 a.m. ET). Individuals interested in listening to the conference call may do so by dialing (877) 556-5248 for domestic callers, or (720) 545-0029 for international callers.
Please reference Conference ID 82786555. Interested parties may access the live teleconference in the Investor Relations section of the company s website at: http://investors.fluidigm.com/events.cfm. The link will not be active until 5:15 a.m.
A telephone replay of the teleconference will be available 90 minutes after the end of the call at (855) 859-2056 (domestic
toll-free), or (404) 537-3406 (international toll), Conference ID 82786555. The conference call will also be archived on the Fluidigm investor s page at: http://investors.fluidigm.com/.
Statement Regarding Use of Non-GAAP Financial Information
Fluidigm has presented certain financial information in accordance with GAAP and also on a non-GAAP basis for the first quarters of 2016 and 2015. 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 completed GAAP and non-GAAP results are presented in the accompanying tables of
this release. For future periods, Fluidigm is unable to provide a reconciliation of non-GAAP measures as a result of the inherent uncertainty regarding, and the potential variability of, the factors affecting future non-GAAP operating expenses,
including (without limitation) uncertainty concerning future changes relating to acquisitions, technologies, and taxes that Fluidigm cannot accurately estimate.
Use of Forward-Looking Statements
contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements relating to current estimates of 2016 total revenue; GAAP and non-GAAP operating expenses; total cash
outflow; interest expense; capital spending; currency-related impact on 2016 revenue; cash outflow from operations; cash, cash equivalents and investments at the end of the fourth quarter of 2016; future growth and position in our target markets;
the timing of anticipated revenue growth in 2016; and anticipated new product release expectations, including for the small and medium-cell HT IFC s. Forward-looking 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, risks relating to the future financial performance of Fluidigm s product lines; challenges inherent in developing, manufacturing, launching,
marketing, and selling new products; potential product performance and quality issues; the possible loss of key employees, customers, or suppliers; intellectual property risks, including risks relating to maintaining material in-licensed
intellectual property rights; competition; Fluidigm s research and development, sales, marketing, and distribution plans and capabilities; reduction in research and development spending or changes in budget priorities by customers;
interruptions or delays in the supply of components or materials for, or manufacturing of, its products; seasonal variations in customer operations; unanticipated increases in costs or expenses; and risks associated with international operations.
Information on these and additional risks, uncertainties, and other information affecting Fluidigm s business and operating results are contained in Fluidigm s Annual Report on Form 10-K for the year ended December 31, 2015 and in its
other filings with the Securities and Exchange Commission. Additional information will also be set forth in Fluidigm s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 to be filed with the Securities and Exchange
Commission. These forward-looking statements speak only as of the date hereof. Fluidigm Corporation disclaims any obligation to update these forward-looking statements except as may be required by law.
Fluidigm (NASDAQ:FLDM) develops, manufactures, and markets life science analytical and preparatory systems for growth markets such as single-cell biology and
production genomics. We sell to leading academic institutions, clinical laboratories, and pharmaceutical, biotechnology, and agricultural biotechnology companies worldwide. Our systems are based on proprietary microfluidics and multi-parameter mass
cytometry technology, and are designed to significantly simplify experimental workflow, increase throughput, and reduce costs while providing excellent data quality. Fluidigm products are provided for Research Use Only. Not for use in diagnostic
We use our website (www.fluidigm.com), corporate Twitter account (@Fluidigm), Facebook page (https://www.facebook.com/Fluidigm), and LinkedIn
page (https://www.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.
Fluidigm, the Fluidigm logo, Biomark, C1, Callisto, CyTOF, Helios, and
Polaris are trademarks or registered trademarks of Fluidigm Corporation.
Fluidigm Corporation
Director, Corporate Development and Investor Relations
650.243.6628 (Office)
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2016 | December 31, 2015 (1) | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 42,854 | $ | 29,117 | ||||
| Short-term investments | 52,365 | 65,855 | ||||||
| Accounts receivable, net | 19,643 | 25,457 | ||||||
| Inventories | 19,570 | 17,924 | ||||||
| Prepaid expenses and other current assets | 3,372 | 5,742 | ||||||
| Total current assets | 137,804 | 144,095 | ||||||
| Long-term investments | 6,493 | |||||||
| Property and equipment, net | 15,370 | 15,258 | ||||||
| Other non-current assets | 8,907 | 9,048 | ||||||
| Developed technology, net | 88,246 | 91,048 | ||||||
| Goodwill | 104,108 | 104,108 | ||||||
| Total assets | $ | 354,435 | $ | 370,050 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,439 | $ | 6,094 | ||||
| Accrued compensation and related benefits | 5,420 | 3,553 | ||||||
| Other accrued liabilities | 11,560 | 11,015 | ||||||
| Deferred revenue, current portion | 9,101 | 9,419 | ||||||
| Total current liabilities | 30,520 | 30,081 | ||||||
| Convertible notes, net | 194,742 | 194,673 | ||||||
| Deferred tax liability, net | 22,496 | 23,595 | ||||||
| Other non-current liabilities | 7,700 | 6,800 | ||||||
| Total liabilities | 255,458 | 255,149 | ||||||
| Total stockholders equity | 98,977 | 114,901 | ||||||
| Total liabilities and stockholders equity | $ | 354,435 | $ | 370,050 |
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenue: | ||||||||
| Instruments | $ | 13,814 | $ | 13,168 | ||||
| Consumables | 11,556 | 10,826 | ||||||
| Product revenue | 25,370 | 23,994 | ||||||
| Service revenue | 3,544 | 2,652 | ||||||
| License and grant revenue | 89 | 83 | ||||||
| Total revenue | 29,003 | 26,729 | ||||||
| Costs and expenses: | ||||||||
| Cost of product revenue | 10,787 | 9,893 | ||||||
| Cost of service revenue | 1,198 | 753 | ||||||
| Research and development | 10,412 | 9,990 | ||||||
| Selling, general and administrative | 25,475 | 20,094 | ||||||
| Total costs and expenses | 47,872 | 40,730 | ||||||
| Loss from operations | (18,869 | ) | (14,001 | ) | ||||
| Interest expense | (1,453 | ) | (1,453 | ) | ||||
| Other expense, net | (324 | ) | (1,120 | ) | ||||
| Loss before income taxes | (20,646 | ) | (16,574 | ) | ||||
| Benefit from income taxes | 762 | 643 | ||||||
| Net loss | $ | (19,884 | ) | $ | (15,931 | ) | ||
| Net loss per share, basic and diluted | $ | (0.69 | ) | $ | (0.56 | ) | ||
| Shares used in computing net loss per share, basic and diluted | 28,863 | 28,468 |
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Operating Activities | ||||||||
| Net loss | $ | (19,884 | ) | $ | (15,931 | ) | ||
| Depreciation and amortization | 1,565 | 1,338 | ||||||
| Stock-based compensation expense | 3,717 | 4,068 | ||||||
| Amortization of developed technology | 2,800 | 2,800 | ||||||
| Other non-cash items | 227 | |||||||
| Changes in assets and liabilities, net | 3,783 | (2,075 | ) | |||||
| Net cash used in operating activities | (7,792 | ) | (9,800 | ) | ||||
| Investing Activities | ||||||||
| Purchases of investments | (8,514 | ) | ||||||
| Proceeds from sales and maturities of investments | 28,532 | 11,100 | ||||||
| Proceeds from sale of investment in Verinata | 2,330 | |||||||
| Purchase of intangible assets | (120 | ) | ||||||
| Purchases of property and equipment | (1,144 | ) | (909 | ) | ||||
| Net cash provided by investing activities | 21,204 | 10,071 | ||||||
| Financing Activities | ||||||||
| Proceeds from exercise of stock options | 5 | 3,732 | ||||||
| Net cash provided by financing activities | 5 | 3,732 | ||||||
| Effect of foreign exchange rate fluctuations on cash and cash equivalents | 320 | (734 | ) | |||||
| Net increase in cash and cash equivalents | 13,737 | 3,269 | ||||||
| Cash and cash equivalents at beginning of period | 29,117 | 33,713 | ||||||
| Cash and cash equivalents at end of period | $ | 42,854 | $ | 36,982 |
FLUIDIGM CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Net loss (GAAP) | $ | (19,884 | ) | $ | (15,931 | ) | ||
| Stock-based compensation expense | 3,717 | 4,068 | ||||||
| Amortization of developed technology | 2,800 | 2,800 | ||||||
| Interest expense | 1,453 | 1,453 | ||||||
| Depreciation and amortization | 1,464 | 1,172 | ||||||
| Benefit from acquisition related income taxes | (1,018 | ) | (820 | ) | ||||
| Loss on disposal of property and equipment | 7 | |||||||
| Net loss (Non-GAAP) | $ | (11,461 | ) | $ | (7,258 | ) | ||
| Shares used in net loss per share calculation - basic and diluted (GAAP and Non-GAAP) | 28,863 | 28,468 | ||||||
| Net loss per share - basic and diluted (GAAP) | $ | (0.69 | ) | $ | (0.56 | ) | ||
| Net loss per share - basic and diluted (Non-GAAP) | $ | (0.40 | ) | $ | (0.25 | ) |
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT MARGIN
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Product margin (GAAP) | $ | 14,583 | $ | 14,101 | ||||
| Amortization of developed technology | 2,800 | 2,800 | ||||||
| Depreciation and amortization | 539 | 255 | ||||||
| Stock-based compensation expense | 378 | 484 | ||||||
| Product margin (Non-GAAP) | $ | 18,300 | $ | 17,640 | ||||
| Product margin percentage (GAAP) | 57.5 | % | 58.8 | % | ||||
| Product margin percentage (Non-GAAP) | 72.1 | % | 73.5 | % |
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP OPERATING EXPENSES
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Operating expenses (GAAP) | $ | 35,887 | $ | 30,084 | ||||
| Stock-based compensation expense | (3,339 | ) | (3,584 | ) | ||||
| Depreciation and amortization | (925 | ) | (917 | ) | ||||
| Loss on disposal of property and equipment | (7 | ) | ||||||
| Operating expenses (Non-GAAP) | $ | 31,616 | $ | 25,583 |
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP LOSS FROM OPERATIONS
| Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Loss from operations (GAAP) | $ | (18,869 | ) | $ | (14,001 | ) | ||
| Stock-based compensation expense | 3,717 | 4,068 | ||||||
| Amortization of developed technology | 2,800 | 2,800 | ||||||
| Depreciation and amortization | 1,464 | 1,172 | ||||||
| Loss on disposal of property and equipment | 7 | |||||||
| Loss from operations (Non-GAAP) | $ | (10,881 | ) | $ | (5,961 | ) |