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Fluidigm Q2 Revenues Rise 58 Percent on Contribution of DVS Acquisition

NEW YORK (GenomeWeb) – Fluidigm's second quarter revenues jumped 58 percent year over year, or 32 percent organically, the company reported after the close of the market on Thursday.

For the three months ended June 30, Fluidigm's total revenues increased to $27.6 million from $17.5 million in the year-ago quarter and beat the consensus analysts' estimate of $27.1 million.

Excluding revenues attributable to the DVS Sciences acquisition, organic revenues improved in the quarter to $23 million, the South San Francisco, Calif.-based firm said.

Product revenues were up 59 percent year over year to $27.5 million from $17.3 million. Instrument revenues increased to $15.4 million from $10.2 million, while the consumables business posted $12.1 million in revenues, compared to $7.1 million a year ago.

License and grant revenues for Q2 2014 retreated to $128,000 from $213,000.

Fluidigm said that instrument revenue growth of 51 percent year over year was driven by a jump in sales of the C1 system, as well as the contribution from the CyTOF 2 system, part of the DVS acquisition. Excluding that contribution, organic instrument revenues were up 20 percent from a year ago.

The company added that about 70 percent of the BioMark system sales in the quarter were the result of single-cell research, and about 20 percent of C1 system sales in Q2 2014 were bundled with a BioMark instrument.

Meanwhile, consumables revenue climbed 71 percent year over year driven by strength across all applications. Excluding a contribution from proteomics analytical consumables resulting from the DVS purchase, organic consumables revenues were up 51 percent year over year, Fluidigm said.

The consumables pull-through during the quarter was within the historical range of $40,000 to $50,000 per instrument per year for genomics analytical systems. The pull-through for genomics preparatory systems was slightly above the expected range of $15,000 to $25,000 per instrument per year, the company added.

For proteomics analytical systems, the consumables pull-through was slightly above the historical range of $50,000 to $70,000 per instrument per year before DVS was acquired by Fluidigm.

Total single-cell proteomics revenues in the quarter were $4.6 million, Fluidigm CFO Vikram Jog said on a conference call following the release of the firm's financial results.

Fluidigm's instrument installed base was 1,147 units at the end of the quarter. Genomics analytical systems, comprising BioMark, BioMark HD, and EP1 systems, made up 585 units of the installed base, while genomics preparatory systems, comprising Access Array and C1 systems, represented 481 units. There were 81 installed proteomics analytical systems, the CyTOF and CyTOF 2.

At the end of the second quarter, Fluidigm had a total installed base of more than 400 C1 and BioMark systems for single-cell genomics research, and the company is "tracking well" toward its goal of more than 700 system installations for single-cell genomics by the end of 2015, Fluidigim President and CEO Gajus Worthington said on the call.

Fluidigm had a net loss of $12.7 million, or $.45 per share, in Q2 2014, compared to a net loss of $4 million, or $.16 per share, a year ago. On average, Wall Street had estimated a net loss of $.50 per share.

Its R&D spending more than doubled year over year to $11.4 million from $5.0 million, while its SG&A costs increased 61 percent to $18.7 million from $11.6 million. The uptick in R&D costs was primarily driven by the DVS purchase, and increased head count and materials used in R&D projects, Jog said, and SG&A expenses rose on integration costs, head count, trade shows, promotions, and professional fees.

Fluidigm's cash and cash equivalents as of the end of the second quarter totaled $43.7 million, and its short-term investments totaled $51.1 million.

Fluidigm raised its guidance for full-year 2014. Total revenues are now anticipated to be in the range of $112 million to $118 million, up from a prior guidance of $111 million to $116 million. Organic revenues are projected in the range of $94 million to $96 million, up from a prior range of $91 million to $94 million.

On the call, Worthington lowered the front end of its full-year 2014 guidance range on its single-cell proteomics product line. Fluidigm now expects a new range of $18 million to $22 million from a previous guidance of $20 million to $22 million.

"Fluidigm's second quarter performance demonstrated the strength of our core organic business across single-cell genomics and production genomics," Worthington said in a statement. "We made solid progress on building and integrating the commercial infrastructure and improving the customer experience for our proteomics product line.

"Our conviction in the single-cell biology market and the strategic rationale of the DVS Sciences acquisition continued to strengthen in the quarter as we created cross-selling opportunities and observed positive funding trends across our proteomics and genomics portfolios," he added.

Separately, Fluidigm said on Thursday that it is accepting applications to an early access program for the company's upcoming imaging mass cytometry platform. The technology for the new instrument is based on laser ablation of a sample in combination with inductively coupled plasma mass spectrometry, and builds on the CyTOF platform.

The new instrument will allow researchers to obtain spatial resolution of protein expression in samples at the single-cell level, Fluidigm said, and will allow for the analysis of more than 30 proteins and resolution down to about 1 micron.

The platform is expected to launch within the next calendar year, depending on feedback from early access customers, Worthington said on the call.

In early Friday trade on the Nasdaq, shares of Fluidigm were up 7 percent at $30.70.

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