Fluidigm Announces Second Quarter 2021 Financial Results with Total Revenue of $31.0 Million

South San Francisco, California, UNITED STATES


Base business rebounds. Promising early reception to 4th generation mass cytometry instrument. Services business achieves quarterly revenue record of $6.6 million.

SOUTH SAN FRANCISCO, Calif., Aug. 05, 2021 (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 second quarter ended June 30, 2021.

“Second quarter results were driven by a rebound in our base business and early customer orders following the launch of our new fourth generation CyTOF® XT mass cytometry product,” said Chris Linthwaite, President and CEO. “Our services business continues to execute well despite a challenging operating environment.

“The steady improvement in our base business performance reflects the favorable impact of our focus on innovation and partnership. We have an exciting pipeline of new customer opportunities and new products. The emergence of the Delta variant remains a wildcard in terms of testing revenue in the months ahead, but our thesis that we are well-equipped to address the biggest trends in health care remains intact, as evidenced by further penetration of translational and clinical research programs and influential consortia,” continued Linthwaite.

Recent Highlights

  • The company joined the FLAMIN-GO Project consortium of academic and industry leaders in rheumatology, autoimmune disease research, and drug discovery and development to create an organ-on-a-chip solution, leveraging the Fluidigm® Hyperion™ Imaging System as a primary tool toward personalized care and improved outcomes for rheumatoid arthritis patients.
  • At quarter end, 162 clinical trials were underway using Fluidigm proprietary CyTOF technology.
  • Total publications and reviews involving CyTOF technology exceeded 1,590, including 115 publications and reviews for Imaging Mass Cytometry™ (IMC™), as of the end of Q2 2021.

Mass Cytometry

  • Fluidigm’s first Mass Cytometry Investor Day showcased competitive advantages of CyTOF technology and provided updates on the company’s innovation pipeline and key customer relationships.
  • CyTOF XT™, the fourth generation CyTOF system, launched at the end of May and was met with positive customer response. CyTOF XT provides simplified operation, increased throughput, automated setup and data acquisition, improved time to results, and reduced total cost of ownership
  • Three CyTOF XT instruments were ordered by quarter end and, to date, seven have been ordered by customers in clinical and translational research, including an order from one of the largest pharmaceutical companies in the world.
  • The company entered into a co-marketing agreement with Ultivue under which customers of both companies will have access to Imaging Mass Cytometry technology as well as the Ultivue InSituPlex® platform, providing optimum imaging solutions for biomarker discovery and drug development.
  • Fluidigm forged a product development and service offering collaboration with imaging CRO ImaBiotech, providing biopharma customers greater access to IMC technology.

Microfluidics

  • Our proteomics OEM partner launched a new microfluidic instrument platform designed and manufactured by Fluidigm.
  • We achieved a milestone in our collaboration with the Defense Advanced Research Projects Agency and its Epigenetic Characterization and Observation program that supports development of innovative programs based on our microfluidics technology.
  • The company delivered on a milestone under our contract with the National Institutes of Health, National Institute of Biomedical Imaging and Bioengineering, under the agency’s Rapid Acceleration of Diagnostics initiative.
  • Fluidigm remains on track for an early access program for development partners for a sample-to-answer chip that integrates many of the current workflow steps into a novel proprietary microfluidic chip. We expect to launch the program later this summer, and, later this year, introduce the next-generation Biomark™ instrument.

Second Quarter 2021 Financial Results

Total revenue was $31.0 million for the quarter ended June 30, 2021, representing a 19 percent increase from $26.1 million in the second quarter of 2020. Base product and service revenue (excluding COVID-19 testing revenue) was $26.9 million, representing a 33% year-over-year increase. Service revenue of $6.6 million achieved a new quarterly record and increased 29 percent over $5.1 million for the second quarter of 2020. Total revenue also included $1.8 million and $3.5 million of other revenue in the quarters ended June 30, 2021 and 2020, respectively.

GAAP net loss for the quarter was $17.1 million, compared with a GAAP net loss of $13.0 million for the second quarter of 2020.

Non-GAAP net loss was $9.3 million for the quarter, compared with a $5.2 million non-GAAP net loss for the second quarter of 2020.

Cash and cash equivalents and restricted cash as of June 30, 2021, totaled $31.9 million, compared to $50.8 million as of March 31, 2021.

A reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.

Supplemental Financial Information updated through June 30, 2021, has been posted on our website concurrent with this release.

Fiscal 2021 Guidance

The company is continuing to review risk factors affecting its business. This includes the recent increase in variant and primary COVID-19 infections and the impact on access to labs and research institutions, as well as ongoing declines in COVID-19 testing revenue, and a potential resolution of certain tax permit issues in China that have previously impacted revenue. However, with some adjustments, Fluidigm is currently maintaining its previously stated full-year total revenue guidance with expectations of:

($ in millions)20202021
 ActualsPrevious
Guidance
Current
Guidance
Product & Service Revenue   
Base business$100.1$116 – $117$120 – $122
COVID-19 Testing Revenue$22.4$14 – $18$10 – $13
Total Product & Service Revenue$122.5$130 – $135$130 – $135
Other Revenue$15.6$4 – $5$4 – $5
Total Revenue$138.1$134 – $140$134 – $140
    
Year-over-year growth   
Base business-14%16% – 17%20% – 22%
COVID-19 Testing RevenueNM-38% – -20%-60% – -42%
Total Product & Service Revenue5%6% – 10%6% – 10%
Total Revenue18%-3% – 1%-3% – 1%
  • GAAP net loss of $62 million to $65 million.
  • Non-GAAP net loss of $29 million to $32 million.

Q3 2021 Guidance

  • Base product and service revenue (excluding COVID-19 testing revenue) of approximately $29 million to $30 million, or approximately 16 to 20 percent year-over-year growth.
  • Total product and service revenue of approximately $29 million to $31 million, or a year-over-year decline of approximately 12 percent to 18 percent. Product and service revenue in Q3 2020 included approximately $10.5 million of COVID-19 testing revenue.
  • Total revenue of approximately $29 million to $31 million.

Conference Call Information
Fluidigm will host a conference call today, August 5, 2021, at 2:00 p.m. PT, 5:00 p.m. ET, to discuss second quarter 2021 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: 4579345

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 August 5, 2021. The webcast will be archived on the Fluidigm Investor Relations page at investors.fluidigm.com.

Statement Regarding Use of Non-GAAP Financial Information
Fluidigm has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-month periods ended June 30, 2021, and June 30, 2020, as well as guidance for non-GAAP net loss for fiscal 2021. 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. Our estimates of forward-looking non-GAAP operating loss exclude estimates for stock-based compensation expense and depreciation and amortization; loss on disposal of property and equipment; future changes relating to developed and acquired technologies; other intangible assets; and income taxes, among other items, certain of which are presented in the tables accompanying our earnings release. A reconciliation of adjusted guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding certain expenses that may be incurred in the future. The time and amount of certain material items needed to estimate non-GAAP financial measures are inherently unpredictable or outside of our control. Material changes to any of these items could have a significant effect on guidance and future GAAP results. 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 anticipated demand for new products, new product introductions and launch plans, access to new customers and markets, the impact of COVID-19, market trends and the benefits of Fluidigm technologies to address such trends, anticipated benefits under collaborations and under agreements with third parties, and revenue and net loss guidance for future periods. 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 potential adverse effects of the coronavirus pandemic on our business and operating results; declines in revenue from COVID-19 testing; the possible loss of key employees, customers, or suppliers; uncertainties in contractual relationships; customers and prospective customers continuing to curtail or suspend activities utilizing our products; our ability and/or the ability of the research institutions utilizing our products and technology to obtain and maintain Emergency Use Authorization from the FDA and any other requisite authorizations or approvals to use our products and technology for diagnostic testing purposes; potential changes in priorities or requirements for Emergency Use Authorizations or other regulatory authorizations or approvals; potential limitations of any Emergency Use Authorization or other regulatory authorizations or approvals; potential changes in the priorities of government agencies; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; Fluidigm research and development and distribution plans and capabilities; interruptions or delays in the supply of components or materials for, or manufacturing of, Fluidigm products; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. 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, 2020, 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, CyTOF XT, Hyperion, Imaging Mass Cytometry, and IMC are trademarks and/or registered trademarks of Fluidigm Corporation in the United States and/or other countries. All other trademarks are the sole property of their respective owners. The Advanta™ Dx SARS-CoV-2 RT-PCR Assay is for In Vitro Diagnostic Use. It is for Use under Emergency Use Authorization Only. Rx Only. Other 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.

Contacts:
Investors:
Peter DeNardo
415 389 6400
IR@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 June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Revenue:       
Product revenue$22,627   $17,405   47,355   36,386  
Service revenue6,627   5,140   12,913   10,326  
Product and service revenue29,254   22,545   60,268   46,712  
Other revenue (Note 1)1,764   3,513   3,544   6,963  
Total revenue31,018   26,058   63,812   53,675  
Costs and expenses:       
Cost of product revenue12,730   9,483   24,393   19,123  
Cost of service revenue1,867   1,237   3,957   2,762  
Cost of product and service revenue14,597   10,720   28,350   21,885  
Research and development9,441   8,448   20,194   17,147  
Selling, general and administrative24,248   20,616   51,856   43,311  
Total costs and expenses48,286   39,784   100,400   82,343  
Loss from operations(17,268)  (13,726)  (36,588)  (28,668) 
Interest expense(896)  (897)  (1,783)  (1,797) 
Other income (expense), net504   463   219   (355) 
Loss before income taxes(17,660)  (14,160)  (38,152)  (30,820) 
Income tax benefit517   1,145   2,188   1,825  
Net loss$(17,143)  $(13,015)  $(35,964)  $(28,995) 
Net loss per share, basic and diluted$(0.23)  $(0.18)  $(0.48)  $(0.41) 
Shares used in computing net loss per share, basic and diluted75,452   70,916   75,084   70,691  
        
Note: (1) Other revenue includes development revenue, license revenue, royalty revenue and grant revenue.


FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
    
  
 June 30, 
2021
 December 31,
2020 (1)
ASSETS   
Current assets:   
Cash and cash equivalents (Note 2)$30,863  $68,520 
Accounts receivable, net15,666  25,423 
Inventories, net25,074  19,689 
Prepaid expenses and other current assets (Note 2)6,603  4,031 
Total current assets78,206  117,663 
Property and equipment, net27,718  17,531 
Operating lease right-of-use assets, net38,717  38,114 
Other non-current assets (Note 2)4,106  4,680 
Developed technology, net34,082  40,206 
Goodwill106,486  106,563 
Total assets$289,315  $324,757 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$11,224  $9,220 
Accrued compensation and related benefits8,293  13,787 
Operating lease liabilities, current2,971  2,973 
Other accrued liabilities8,682  11,882 
Deferred grant income, current7,703  2,912 
Deferred revenue, current13,975  13,475 
Total current liabilities52,848  54,249 
Convertible notes, net53,943  54,224 
Deferred tax liability, net6,700  8,697 
Operating lease liabilities, non-current39,061  38,178 
Deferred revenue, non-current6,506  7,990 
Deferred grant income, non-current20,531  21,036 
Other non-current liabilities276  1,333 
Total liabilities179,865  185,707 
Total stockholders' equity109,450  139,050 
Total liabilities and stockholders' equity$289,315  $324,757 
    
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$30,863  $68,520 
Restricted cash (included in prepaid and other current assets, and other non-current assets)1,016  1,016 
Total cash and cash equivalents, available for sale securities and restricted cash$31,879  $69,536 
    


FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
    
 Six Months Ended June 30,
 2021 2020
OPERATING ACTIVITIES   
Net loss$(35,964)  $(28,995) 
Stock-based compensation expense7,418   6,000  
Amortization of developed technology5,965   5,936  
Loss on disposal of property and equipment   148  
Depreciation and amortization1,851   2,016  
Other non-cash items1,787   2,048  
Changes in assets and liabilities, net(8,622)  5,762  
Net cash used in operating activities(27,565)  (7,085) 
    
INVESTING ACTIVITIES   
Acquisition, net of cash acquired   (5,154) 
Proceeds from NIH Contract2,000     
Proceeds from sales and maturities of investments   34,411  
Purchases of property and equipment(11,095)  (1,671) 
Net cash provided by (used in) investing activities(9,095)  27,586  
    
FINANCING ACTIVITIES   
Repayment of long-term debt(501)    
Proceeds from (payments for) employee equity programs, net(658)  383  
Payment of debt issuance costs   (375) 
Net cash provided by (used in) financing activities(1,159)  8  
    
Effect of foreign exchange rate fluctuations on cash and cash equivalents162   (205) 
Net increase (decrease) in cash, cash equivalents and restricted cash(37,657)  20,304  
Cash, cash equivalents and restricted cash at beginning of period69,536   23,736  
Cash, cash equivalents and restricted cash at end of period$31,879   $44,040  
    
Cash and cash equivalents, restricted cash and available for sale securities consist of:   
Cash and cash equivalents$30,863   $42,965  
Short-term investments   2,431  
Restricted cash (included in prepaid and other current assets, and other non-current assets)1,016   1,075  
Total cash and cash equivalents, available for sale securities and restricted cash$31,879   $46,471  
    


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 LOSS
        
 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
        
Net loss (GAAP)$(17,143)  $(13,015)  $(35,964)  $(28,995) 
Stock-based compensation expense3,741   3,634   7,418   6,000  
Amortization of developed technology (a)2,982   2,968   5,965   5,936  
Depreciation and amortization917   924   1,851   2,016  
Interest expense (b)896   897   1,783   1,797  
Loss on disposal of property and equipment1   148   1   148  
Loss on extinguishment of debt      9     
Benefit from acquisition related income taxes (c)(742)  (742)  (1,484)  (1,484) 
Net loss (Non-GAAP)$(9,348)  $(5,186)  $(20,421)  $(14,582) 
Shares used in net loss per share calculation -       
basic and diluted (GAAP and Non-GAAP)75,452   70,916   75,084   70,691  
        
Net loss per share - basic and diluted (GAAP)$(0.23)  $(0.18)  $(0.48)  $(0.41) 
Net loss per share - basic and diluted (Non-GAAP)$(0.12)  $(0.07)  $(0.27)  $(0.21) 
        
        
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT AND SERVICE MARGIN
        
 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Product and service gross profit (GAAP)$14,657   $11,825   $31,918   $24,827  
Amortization of developed technology (a)2,800   2,800   5,600   5,600  
Depreciation and amortization (d)393   403   813   796  
Stock-based compensation expense (d)128   108   226   179  
Product and service gross profit (Non-GAAP)$17,978   $15,136   $38,557   $31,402  
        
Product and service margin percentage (GAAP)50.1 % 52.5 % 53.0 % 53.1 %
Product and service margin percentage (Non-GAAP)61.5 % 67.1 % 64.0 % 67.2 %
        
        
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP OPERATING EXPENSES
        
 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Operating expenses (GAAP)$33,689   $29,064   $72,050   $60,458  
Stock-based compensation expense (e)(3,613)  (3,526)  (7,192)  (5,821) 
Depreciation and amortization (e)(707)  (689)  (1,404)  (1,556) 
Loss on disposal of property and equipment (e)(1)  (148)  (1)  (148) 
Operating expenses (Non-GAAP)$29,368   $24,701   $63,453   $52,933  
        
        
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP LOSS FROM OPERATIONS
        
 Three Months Ended June 30, Six Months Ended June 30,
 2021 2020 2021 2020
Loss from operations (GAAP)$(17,268)  $(13,726)  $(36,588)  $(28,668) 
Stock-based compensation expense3,741   3,634   7,418   6,000  
Amortization of developed technology (a)2,982   2,968   5,965   5,936  
Depreciation and amortization (e)917   924   1,851   2,016  
Loss on disposal of property and equipment (e)1   148   1   148  
Loss from operations (Non-GAAP)$(9,627)  $(6,052)  $(21,353)  $(14,568) 
        
        
(a) represents amortization of developed technology in connection with the DVS and InstruNor acquisitions
(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