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 2020

  • 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 2020 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 revenue 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.

Revenue 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%

*Americas geographic area includes Other Revenue 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 30, 2020: 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 Progress

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 Progress

  • 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) 545-0029Please 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 InformationWe 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 LeeVice President, Investor Relations650 416 7423agnes.lee@fluidigm.com

Media:Mark SpearmanSenior Director, Corporate Communications650 243 6621mark.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
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