Delaware | 001-34180 | 77-0513190 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibit No. | Description | |
99.1 | Fluidigm Corporation Press Release dated October 30, 2014 |
FLUIDIGM CORPORATION | ||||||
Date: October 30, 2014 | By: | /s/ Vikram Jog | ||||
Vikram Jog Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Fluidigm Corporation Press Release dated October 30, 2014 |
• | Instrument revenue grew 64% year-on-year in the quarter, driven by increased sales of the C1 and BioMark HD systems, and contribution from the acquired CyTOF 2 system. |
◦ | Organic instrument revenue growth (which excludes contribution from the CyTOF 2 system) was 29% year-on-year in the quarter. |
◦ | Approximately 60% of the BioMark HD system sales during the quarter were motivated by single-cell research. |
◦ | Approximately 25% of C1 system sales were combined with a BioMark HD system in the quarter. |
• | Consumables revenue grew 64% year-on-year in the quarter, driven by production genomics and single-cell genomics applications, and contribution from acquired proteomics analytical consumables. |
◦ | Organic consumables revenue growth (which excludes contribution from proteomics analytical consumables) was 48% year-on-year in the quarter. |
◦ | Consumables pull-through in the quarter was within its historical range of $40,000 - $50,000 per instrument/year for genomics analytical systems and $15,000 - $25,000 per instrument/year for genomics preparatory systems. |
◦ | Consumables pull-through for proteomics analytical systems in the quarter was within its historical range of $50,000 -$70,000 per instrument/year. |
• | Geographic revenue as a percent of total product revenue in the third quarter of 2014 was as follows: United States - 57%; Europe - 27%; Japan - 3%; Asia-Pacific - 9%; and Other - 4%. |
• | Fluidigm’s instrument installed base was 1,230 units at the end of the quarter. |
◦ | Genomics analytical systems (BioMark, BioMark HD, and EP1™ systems) represented 617 units of the installed base, genomics preparatory systems (Access Array™ and C1 systems) |
• | GAAP product margin was 61% in the third quarter of 2014, versus 72% in the year ago period. Non-GAAP product margin, which excludes the effects of amortization of developed technology, depreciation and amortization, non-cash charge for the sale of inventory revalued at the date of acquisition, and stock-based compensation expense, was 74% in the third quarter of 2014, versus 74% in the year ago period (see accompanying table for reconciliation of GAAP and non-GAAP product margins). |
• | Fluidigm ended September 30, 2014 with approximately $147.2 million in cash, cash equivalents, and investments. |
• | Initiated an early access program targeting key production genomics customers and prospects for our new Juno™ system, which allows for fully-automated SNP genotyping from dilute or challenging DNA samples. |
• | Launched the Single-Cell Whole Exome Sequencing Application for the C1 system, designed to help researchers accelerate the discovery of novel functional variants that may alter protein function. |
• | The total number of single-cell biology publications referencing Fluidigm increased to 222, which includes 63 publications citing mass cytometry technology. |
• | Single-cell mass cytometry study utilizing the deep profiling capabilities of the CyTOF published in Science Translational Medicine, demonstrating the ability to correlate changes in certain blood cell types with surgical recovery times. |
• | Shallow sequencing of single cells study utilizing the C1 system published in Nature Biotechnology, demonstrating that shallow single-cell mRNA sequencing (approximately 50,000 reads per cell) is sufficient for unbiased classification of cell identities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Instruments | $ | 17,850 | $ | 10,894 | $ | 48,327 | $ | 28,964 | ||||||||
Consumables | 11,714 | 7,151 | 34,165 | 20,602 | ||||||||||||
Product revenue | 29,564 | 18,045 | 82,492 | 49,566 | ||||||||||||
License and grant revenue | 71 | 242 | 474 | 736 | ||||||||||||
Total revenue | 29,635 | 18,287 | 82,966 | 50,302 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product revenue | 11,421 | 5,138 | 30,080 | 14,273 | ||||||||||||
Research and development | 12,687 | 5,004 | 31,707 | 14,198 | ||||||||||||
Selling, general and administrative | 18,574 | 12,097 | 52,486 | 34,840 | ||||||||||||
Litigation settlement | — | 1,000 | — | 1,000 | ||||||||||||
Acquisition-related expenses | — | — | 10,696 | — | ||||||||||||
Total costs and expenses | 42,682 | 23,239 | 124,969 | 64,311 | ||||||||||||
Loss from operations | (13,047 | ) | (4,952 | ) | (42,003 | ) | (14,009 | ) | ||||||||
Interest expense | (1,453 | ) | (1 | ) | (3,894 | ) | (13 | ) | ||||||||
Gain from sale of investment in Verinata | 332 | — | 332 | 1,777 | ||||||||||||
Other (expense) income, net | (338 | ) | 709 | (308 | ) | 457 | ||||||||||
Loss before income taxes | (14,506 | ) | (4,244 | ) | (45,873 | ) | (11,788 | ) | ||||||||
Benefit from (provision for) income taxes | 716 | (42 | ) | 3,987 | (95 | ) | ||||||||||
Net loss | $ | (13,790 | ) | $ | (4,286 | ) | $ | (41,886 | ) | $ | (11,883 | ) | ||||
Net loss per share, basic and diluted | $ | (0.49 | ) | $ | (0.17 | ) | $ | (1.52 | ) | $ | (0.47 | ) | ||||
Shares used in computing net loss per share, basic and diluted | 28,085 | 25,534 | 27,613 | 25,407 | ||||||||||||
September 30, 2014 | December 31, 2013 (1) | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 30,939 | $ | 35,261 | ||||
Short-term investments | 64,324 | 49,083 | ||||||
Accounts receivable, net | 16,919 | 10,552 | ||||||
Inventories | 16,960 | 8,148 | ||||||
Prepaid expenses and other current assets | 3,678 | 1,540 | ||||||
Total current assets | 132,820 | 104,584 | ||||||
Long-term investments | 51,962 | 1,942 | ||||||
Property and equipment, net | 12,668 | 6,818 | ||||||
Other non-current assets | 3,698 | 3,571 | ||||||
Developed technology, net | 105,000 | — | ||||||
Goodwill | 104,245 | — | ||||||
Total assets | $ | 410,393 | $ | 116,915 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 7,276 | $ | 4,353 | ||||
Accrued compensation and related benefits | 6,034 | 5,485 | ||||||
Other accrued liabilities | 7,366 | 5,392 | ||||||
Deferred revenue, current portion | 6,630 | 2,721 | ||||||
Total current liabilities | 27,306 | 17,951 | ||||||
Convertible notes | 195,399 | — | ||||||
Deferred tax liability | 27,109 | — | ||||||
Other non-current liabilities | 6,024 | 2,550 | ||||||
Total liabilities | 255,838 | 20,501 | ||||||
Total stockholders’ equity | 154,555 | 96,414 | ||||||
Total liabilities and stockholders’ equity | $ | 410,393 | $ | 116,915 | ||||
(1) | Derived from audited consolidated financial statements. |
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Operating Activities | ||||||||
Net loss | $ | (41,886 | ) | $ | (11,883 | ) | ||
Depreciation and amortization | 2,922 | 1,850 | ||||||
Stock-based compensation expense | 15,280 | 4,681 | ||||||
Non-cash charges related to acquisition | 10,446 | — | ||||||
Gain from sale of investment in Verinata | (332 | ) | (1,777 | ) | ||||
Other non-cash item | 83 | 29 | ||||||
Changes in assets and liabilities, net | (5,611 | ) | 2,271 | |||||
Net cash used in operating activities | (19,098 | ) | (4,829 | ) | ||||
Investing Activities | ||||||||
Acquisition, net of cash acquired | (113,190 | ) | — | |||||
Purchases of investments | (106,672 | ) | (56,831 | ) | ||||
Proceeds from sales and maturities of investments | 41,412 | 19,140 | ||||||
Proceeds from sale of investment in Verinata | 332 | 3,117 | ||||||
Purchase of intangible assets | — | (1,043 | ) | |||||
Purchases of property and equipment | (5,919 | ) | (1,565 | ) | ||||
Net cash used in investing activities | (184,037 | ) | (37,182 | ) | ||||
Financing Activities | ||||||||
Proceeds from issuance of convertible notes, net | 195,212 | — | ||||||
Proceeds from exercise of stock options | 4,084 | 3,501 | ||||||
Net cash provided by financing activities | 199,296 | 3,501 | ||||||
Effect of foreign exchange rate fluctuations on cash and cash equivalents | (483 | ) | (40 | ) | ||||
Net decrease in cash and cash equivalents | (4,322 | ) | (38,550 | ) | ||||
Cash and cash equivalents at beginning of period | 35,261 | 58,649 | ||||||
Cash and cash equivalents at end of period | $ | 30,939 | $ | 20,099 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net loss (GAAP) | $ | (13,790 | ) | $ | (4,286 | ) | $ | (41,886 | ) | $ | (11,883 | ) | ||||
Acquisition-related expenses | — | — | 10,696 | (1) | — | |||||||||||
Stock-based compensation expense | 6,024 | 1,749 | 15,280 | 4,681 | ||||||||||||
Amortization of developed technology | 2,800 | — | 7,000 | — | ||||||||||||
Interest expense | 1,453 | 1 | 3,894 | 13 | ||||||||||||
Depreciation and amortization | 1,080 | 657 | 2,922 | 1,850 | ||||||||||||
Non-cash charge for sale of inventory revalued at the date of acquisition | 116 | — | 798 | — | ||||||||||||
Benefit from acquisition related income taxes | (449 | ) | — | (3,188 | ) | — | ||||||||||
Gain from sale of investment in Verinata | (332 | ) | — | (332 | ) | (1,777 | ) | |||||||||
Other income from litigation settlement | — | (600 | ) | — | (600 | ) | ||||||||||
Litigation settlement expense | — | 1,000 | — | 1,000 | ||||||||||||
Loss on disposal of property and equipment | 16 | — | 83 | 29 | ||||||||||||
Net loss (Non-GAAP) | $ | (3,082 | ) | $ | (1,479 | ) | $ | (4,733 | ) | $ | (6,687 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Product margin (GAAP) | $ | 18,143 | $ | 12,907 | $ | 52,412 | $ | 35,293 | ||||||||
Amortization of developed technology | 2,800 | — | 7,000 | — | ||||||||||||
Depreciation and amortization | 214 | 191 | 652 | 563 | ||||||||||||
Non-cash charge for sale of inventory revalued at the date of acquisition | 116 | — | 798 | — | ||||||||||||
Stock-based compensation expense | 443 | 165 | 1,149 | 449 | ||||||||||||
Product margin (Non-GAAP) | $ | 21,716 | $ | 13,263 | $ | 62,011 | $ | 36,305 | ||||||||
Product margin percentage (GAAP) | 61.4 | % | 71.5 | % | 63.5 | % | 71.2 | % | ||||||||
Product margin percentage (Non-GAAP) | 73.5 | % | 73.5 | % | 75.2 | % | 73.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating expenses (GAAP) | $ | 31,261 | $ | 17,101 | $ | 94,889 | $ | 49,038 | ||||||||
Acquisition-related expenses | — | — | (10,696 | ) | (1) | — | ||||||||||
Stock-based compensation expense | (5,581 | ) | (1,584 | ) | (14,131 | ) | (4,232 | ) | ||||||||
Depreciation and amortization | (866 | ) | (466 | ) | (2,270 | ) | (1,287 | ) | ||||||||
Litigation settlement expense | — | (1,000 | ) | — | (1,000 | ) | ||||||||||
Operating expenses (Non-GAAP) | $ | 24,814 | $ | 14,051 | $ | 67,792 | $ | 42,519 |