Full Press Release Details
FLUIDIGM ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
SOUTH SAN FRANCISCO, Calif., August 4, 2016 Fluidigm Corporation (NASDAQ:FLDM) today announced its financial results for the second quarter ended
Total revenue for the second quarter of 2016 was $28.2 million, a decrease of 2% from $28.6 million in the second quarter of 2015.
GAAP net loss for the second quarter of 2016 was $18.6 million, compared with a GAAP net loss of $15.2 million for the second quarter of 2015. Non-GAAP net loss for the second quarter of 2016 was $9.9 million, compared with a $5.8 million non-GAAP
net loss for the second quarter of 2015.
Total revenue for the first six months of 2016 was $57.2 million, an increase of 3% from $55.3 million in the
first six months of 2015. GAAP net loss for the first six months of 2016 was $38.5 million, compared with a GAAP net loss of $31.2 million in the first six months of 2015. Non-GAAP net loss for the first six months of 2016 was $21.3 million,
compared with a $13.1 million non-GAAP net loss for the first six months of 2015.
Revenue from products launched in 2015 and consumables revenue
from applied markets grew in the second quarter compared with the year ago period. We are disappointed, however, that single-cell biology revenue declined in the quarter. While our proteomics product line revenue posted solid growth, this decline
was driven primarily by lower-than-expected C1 instrument revenue. We expect C1 system sales to remain challenged in the third quarter of 2016, but believe that the breadth of our C1 applications, the release of new high-throughput IFCs, and
progress toward another order-of-magnitude increase in throughput will position C1 to regain traction in the fourth quarter, said Gajus Worthington, Fluidigm chief executive officer.
Our proteomics product line continued to deliver strong performance, growing over 40% in the first six months of 2016 compared with the year ago period.
We are also very excited about our impending fourth quarter release of the Imaging Mass Cytometry system, a breakthrough technology in the field of tissue imaging. Finally, we continue to expect progress on our strategic commercial initiatives,
including anticipated revenue growth within applied markets in the second half of the year, continued Worthington.
Financial Highlights
Total revenue of $28.2 million by category for Q2 2016:
product revenue of $24.7 million by customer for Q2 2016:
Total installed base of approximately 1,765 units at the end of Q2 2016:
revenue of $28.2 million by geography for Q2 2016:
Product margin and cash, cash equivalents, and investments:
Recent Business Highlights
Conference Call Information
Fluidigm will host a
conference call today, August 4, 2016, at 2:00 p.m. PT (5:00 p.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 34161018. 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 1:45 p.m.
PT (4:45 p.m. ET) on August 4, 2016.
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 34161018. 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 second quarter and first half 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 GAAP and non-GAAP operating results are presented in the
accompanying tables of this release. For future periods, Fluidigm is unable to provide a complete quantitative 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 stock-based compensation expense, depreciation and amortization, loss on disposal of property and equipment, developed and
acquired technologies, and other intangible assets, among other items, that Fluidigm cannot accurately estimate.
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 relating to current estimates of 2016
total revenue (including the impact of revenue from Fluidigm s Imaging Mass Cytometry system); GAAP and non-GAAP operating expenses; total cash outflow; stock-based compensation expense;
interest expense; capital spending; currency-related impact on 2016 revenue; cash outflow from operations; depreciation and amortization; developed technology amortization; cash, cash equivalents, and investments at the end of the fourth quarter of
2016; future growth and position in our target markets; estimates of 2016 product revenue trends, including C1 system trends; the timing of anticipated revenue growth in 2016; anticipated new product release expectations, including for
Fluidigm s new high-throughput IFCs and Imaging Mass Cytometry system; Fluidigm s plans to implement a certified training program for new users of its mass cytometry technology and applications and to expand such demonstrations to include
all Fluidigm systems; expected progress on strategic commercial initiatives; and plans, objectives, expectations, and strategies for Fluidigm s business, including its commercial execution, market opportunities, and anticipated challenges and
uncertainties for the remainder of 2016. 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 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; competition; Fluidigm 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 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 June 30, 2016 to be filed 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.
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 multiparameter 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 procedures.
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
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
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue: | ||||||||||||||||
| Instruments | $ | 13,195 | $ | 14,532 | $ | 27,009 | $ | 27,700 | ||||||||
| Consumables | 11,538 | 11,122 | 23,094 | 21,948 | ||||||||||||
| Product revenue | 24,733 | 25,654 | 50,103 | 49,648 | ||||||||||||
| Service revenue | 3,389 | 2,904 | 6,933 | 5,556 | ||||||||||||
| License and grant revenue | 46 | 60 | 135 | 143 | ||||||||||||
| Total revenue | 28,168 | 28,618 | 57,171 | 55,347 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of product revenue | 11,239 | 11,156 | 22,026 | 21,049 | ||||||||||||
| Cost of service revenue | 1,248 | 809 | 2,446 | 1,562 | ||||||||||||
| Research and development | 9,978 | 10,090 | 20,390 | 20,080 | ||||||||||||
| Selling, general and administrative | 23,845 | 21,222 | 49,320 | 41,316 | ||||||||||||
| Total costs and expenses | 46,310 | 43,277 | 94,182 | 84,007 | ||||||||||||
| Loss from operations | (18,142 | ) | (14,659 | ) | (37,011 | ) | (28,660 | ) | ||||||||
| Interest expense | (1,453 | ) | (1,451 | ) | (2,906 | ) | (2,904 | ) | ||||||||
| Other expense, net | (44 | ) | 608 | (368 | ) | (512 | ) | |||||||||
| Loss before income taxes | (19,639 | ) | (15,502 | ) | (40,285 | ) | (32,076 | ) | ||||||||
| Benefit from income taxes | 1,022 | 266 | 1,784 | 909 | ||||||||||||
| Net loss | $ | (18,617 | ) | $ | (15,236 | ) | $ | (38,501 | ) | $ | (31,167 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.64 | ) | $ | (0.53 | ) | $ | (1.33 | ) | $ | (1.09 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 28,944 | 28,803 | 28,904 | 28,636 |
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2016 | December 31, 2015 (1) | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,898 | $ | 29,117 | ||||
| Short-term investments | 50,512 | 65,855 | ||||||
| Accounts receivable, net | 18,885 | 25,457 | ||||||
| Inventories | 18,180 | 17,924 | ||||||
| Prepaid expenses and other current assets | 3,569 | 5,742 | ||||||
| Total current assets | 127,044 | 144,095 | ||||||
| Long-term investments | 6,493 | |||||||
| Property and equipment, net | 16,816 | 15,258 | ||||||
| Other non-current assets | 8,621 | 9,048 | ||||||
| Developed technology, net | 85,445 | 91,048 | ||||||
| Goodwill | 104,108 | 104,108 | ||||||
| Total assets | $ | 342,034 | $ | 370,050 | ||||
| Liabilities And Stockholders Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,830 | $ | 6,094 | ||||
| Accrued compensation and related benefits | 3,335 | 3,553 | ||||||
| Other accrued liabilities | 14,122 | 11,015 | ||||||
| Deferred revenue, current portion | 9,028 | 9,419 | ||||||
| Total current liabilities | 32,315 | 30,081 | ||||||
| Convertible notes, net | 194,811 | 194,673 | ||||||
| Deferred tax liability, net | 21,606 | 23,595 | ||||||
| Other non-current liabilities | 9,038 | 6,800 | ||||||
| Total liabilities | 257,770 | 255,149 | ||||||
| Total stockholders equity | 84,264 | 114,901 | ||||||
| Total liabilities and stockholders equity | $ | 342,034 | $ | 370,050 |
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six Months Ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| Operating Activities | ||||||||
| Net loss | $ | (38,501 | ) | $ | (31,167 | ) | ||
| Depreciation and amortization | 3,245 | 2,779 | ||||||
| Stock-based compensation expense | 7,447 | 8,706 | ||||||
| Amortization of developed technology | 5,600 | 5,600 | ||||||
| Other non-cash items | 554 | 230 | ||||||
| Changes in assets and liabilities, net | 6,509 | (3,777 | ) | |||||
| Net cash used in operating activities | (15,146 | ) | (17,629 | ) | ||||
| Investing Activities | ||||||||
| Purchases of investments | (34,559 | ) | (33,731 | ) | ||||
| Proceeds from sales and maturities of investments | 56,387 | 39,376 | ||||||
| Proceeds from sale of investment in Verinata | 2,330 | |||||||
| Purchase of intangible assets | (120 | ) | ||||||
| Purchases of property and equipment | (2,662 | ) | (2,310 | ) | ||||
| Net cash provided by investing activities | 21,496 | 3,215 | ||||||
| Financing Activities | ||||||||
| Proceeds from exercise of stock options, net of tax payments | 134 | 5,128 | ||||||
| Net cash provided by financing activities | 134 | 5,128 | ||||||
| Effect of foreign exchange rate fluctuations on cash and cash equivalents | 297 | (682 | ) | |||||
| Net increase in cash and cash equivalents | 6,781 | (9,968 | ) | |||||
| Cash and cash equivalents at beginning of period | 29,117 | 33,713 | ||||||
| Cash and cash equivalents at end of period | $ | 35,898 | $ | 23,745 |
FLUIDIGM CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net loss (GAAP) | $ | (18,617 | ) | $ | (15,236 | ) | $ | (38,501 | ) | $ | (31,167 | ) | ||||
| Stock-based compensation expense | 3,730 | 4,638 | 7,447 | 8,706 | ||||||||||||
| Amortization of developed technology (a) | 2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
| Interest expense (b) | 1,453 | 1,451 | 2,906 | 2,904 | ||||||||||||
| Depreciation and amortization | 1,552 | 1,255 | 3,016 | 2,427 | ||||||||||||
| Benefit from acquisition related income taxes (c) | (808 | ) | (794 | ) | (1,826 | ) | (1,614 | ) | ||||||||
| Loss on disposal of property and equipment | 5 | 93 | 12 | 93 | ||||||||||||
| Net loss (Non-GAAP) | $ | (9,885 | ) | $ | (5,793 | ) | $ | (21,346 | ) | $ | (13,051 | ) | ||||
| Shares used in net loss per share calculation - basic and diluted (GAAP and Non-GAAP) | 28,944 | 28,803 | 28,904 | 28,636 | ||||||||||||
| Net loss per share - basic and diluted (GAAP) | $ | (0.64 | ) | $ | (0.53 | ) | $ | (1.33 | ) | $ | (1.09 | ) | ||||
| Net loss per share - basic and diluted (Non-GAAP) | $ | (0.34 | ) | $ | (0.20 | ) | $ | (0.74 | ) | $ | (0.46 | ) |
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT MARGIN
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Product margin (GAAP) | $ | 13,494 | $ | 14,498 | $ | 28,077 | $ | 28,599 | ||||||||
| Amortization of developed technology (a) | 2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
| Depreciation and amortization (d) | 549 | 260 | 1,088 | 515 | ||||||||||||
| Stock-based compensation expense (d) | 338 | 524 | 716 | 1,008 | ||||||||||||
| Product margin (Non-GAAP) | $ | 17,181 | $ | 18,082 | $ | 35,481 | $ | 35,722 | ||||||||
| Product margin percentage (GAAP) | 54.6 | % | 56.5 | % | 56.0 | % | 57.6 | % | ||||||||
| Product margin percentage (Non-GAAP) | 69.5 | % | 70.5 | % | 70.8 | % | 72.0 | % |
ITEMIZED RECONCILIATION BETWEEN GAAP AND
NON-GAAP OPERATING EXPENSES
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Operating expenses (GAAP) | $ | 33,823 | $ | 31,312 | $ | 69,710 | $ | 61,396 | ||||||||
| Stock-based compensation expense (e) | (3,392 | ) | (4,114 | ) | (6,731 | ) | (7,698 | ) | ||||||||
| Depreciation and amortization (e) | (1,003 | ) | (995 | ) | (1,928 | ) | (1,912 | ) | ||||||||
| Loss on disposal of property and equipment (e) | (5 | ) | (93 | ) | (12 | ) | (93 | ) | ||||||||
| Operating expenses (Non-GAAP) | $ | 29,423 | $ | 26,110 | $ | 61,039 | $ | 51,693 |
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP LOSS FROM
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Loss from operations (GAAP) | $ | (18,142 | ) | $ | (14,659 | ) | $ | (37,011 | ) | $ | (28,660 | ) | ||||
| Stock-based compensation expense | 3,730 | 4,638 | 7,447 | 8,706 | ||||||||||||
| Amortization of developed technology (a) | 2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
| Depreciation and amortization (e) | 1,552 | 1,255 | 3,016 | 2,427 | ||||||||||||
| Loss on disposal of property and equipment (e) | 5 | 93 | 12 | 93 | ||||||||||||
| Loss from operations (Non-GAAP) | $ | (10,055 | ) | $ | (5,873 | ) | $ | (20,936 | ) | $ | (11,834 | ) |