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Fluidigm Q2 Revenues Dip 2 Percent on Lower Instrument Sales

NEW YORK (GenomeWeb) - Fluidigm said after the close of the market on Thursday that its second quarter revenues decreased 2 percent year over year.

For the three months ended June 30, the South San Francisco, California-based firm reported revenues of $28.2 million compared to $28.6 million in the second quarter of 2015 and falling short of the consensus Wall Street estimate of $29.6 million.

"Revenue from products launched in 2015 and consumables revenue from applied markets grew in the second quarter compared with the year ago period," Fluidigm CEO Gajus Worthington said on a conference call following the release of results. However, revenue from single-cell biology was disappointing, he said, driven by "lower-than-expected" revenue from its C1single-cell auto prep system.

Instrument revenue decreased 9 percent year over year to $13.2 million, primarily due to a decrease in C1 sales. Consumables revenue increased 4 percent to $11.5 million. Worthington noted that the fact that consumables revenue did not see the same decrease as instrument revenue was an important indicator. "Customers are continuing to use the C1," he said. "It's not as if they're shutting these things off." Still, he acknowledged that the company is dealing with competition in the space.

Product revenue from research customers decreased 13 percent to $15.5 million, while product revenue from applied customers was up 19 percent to $9.3 million. Service revenue increased 17 percent to $3.4 million, while license and grant revenue was $46,000.

Fluidigm's installed instrument base was 1,765, of which 890 were designated for single-cell analysis.

Worthington added that the firm's proteomics market segment grew 40 percent year on year, driven by biopharmaceutical customers. He also highlighted the firm's success in applied markets, driven by growth in proteomic and genomic analytical instrument sales. Coinciding with the release of results, Fluidigm made several other announcements.

First, it announced the launch of the Juno high-throughput, targeted next-generation sequencing system for the Juno microfluidic automation platform. "Supporting a range of panel designs from targeted multiplexed panels covering a few user‑defined genes to more comprehensive panels of up to 4,800 amplicons from hundreds of genes, the system can help laboratories achieve new sequencing efficiencies with consistent performance," the firm said in a statement.

Second, Fluidigm announced its South San Francisco and Singapore facilities have received ISO 13485 and ISO 9001 certification for the design, development, manufacturing, and distribution of single-cell genomics and high-throughput genomics systems.

The firm also introduced Chris Linthwaite, a former executive at Thermo Fisher Scientific, as President and COO.

Fluidigm's net loss for the quarter widened to $18.6 million, or $.64 per share, compared to a loss of $15.2 million, or $.53 per share, a year ago. On an adjusted basis, Fluidigm's loss per share was $.34, exceeding analysts' estimate of a loss per share of $.58.

The firm's R&D spending decreased 1 percent to $10 million from $10.1 million in the prior-year period. Its SG&A spending was $23.8 million, up 12 percent from $21.2 million.

The firm ended the quarter with $35.9 million in cash and cash equivalents and $50.5 million in short-term investments.

Though projecting flat revenues for the third quarter, compared to the prior year, Fluidigm officials reiterated guidance for total revenues between $124 million and $128 million for fiscal year 2016.