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 29, 2015 |
FLUIDIGM CORPORATION | ||||||
Date: October 29, 2015 | By: | /s/ Vikram Jog | ||||
Vikram Jog Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Fluidigm Corporation Press Release dated October 29, 2015 |
• | Instrument and service revenue was up 4% or $0.7 million year-on-year in the quarter, primarily due to contribution from new products, increased sales of Helios™ (CyTOF®) systems and service, partly offset by decreased sales from core genomics systems. |
◦ | Approximately 45% of the Biomark™ HD system sales during the quarter were motivated by single-cell biology research. |
◦ | Approximately 20% of C1™ system sales were combined with a Biomark HD system in the quarter. |
• | Consumables revenue declined 14% or $1.7 million year-on-year in the quarter, primarily due to decreased sales from production genomics applications. |
◦ | IFC (integrated fluidic circuit) pull-through in the quarter was within its revised historical range of $25,000 - $35,000 per instrument/year for genomics analytical systems and within its historical range of $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 2015 was as follows: United States -48%; Europe - 35%; Japan - 4%; Asia-Pacific -8%; and Other -5%. |
• | Fluidigm’s total instrument installed base was approximately 1,565 units at the end of the quarter. |
◦ | Approximately 55% of the installed base was analytical versus 45% preparatory systems. |
◦ | Single-cell biology systems (includes C1, Polaris™, Helios, CyTOF, CyTOF 2, Callisto™, Biomark and Biomark HD systems motivated by single-cell research) represented approximately 760 units. |
• | GAAP product margin was 58.3% in the third quarter of 2015, versus 61.3% in the year ago period. Non-GAAP product margin was 72.1% in the third quarter of 2015, versus 74.4% in the year ago period. Non-GAAP product margin excludes the effects of amortization of developed technology, depreciation and amortization, and stock-based compensation expense (see accompanying table for reconciliation of GAAP and non-GAAP product margins). |
• | Fluidigm ended September 30, 2015 with approximately $114.1 million in cash, cash equivalents, and investments. |
• | Fluidigm, in partnership with Monash University, the University of Melbourne, the University of Newcastle, and the Hudson Institute of Medical Research established Australia’s first Single-Cell Genomics Centre of Excellence. |
• | We commercially launched the high throughput single-cell mRNA sequencing workflow for the C1 system, which includes a new integrated fluidic circuit (IFC) and reagent kit. |
• | Fluidigm expanded its commercial leadership team with the addition of industry veterans Fred Graff, Vice President, North America Sales; John Stark, Senior Vice President, Commercial Operations; and Pat Cooke, PhD, Vice President, Global Services. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenue: | ||||||||||||||||
Instruments | $ | 15,057 | $ | 15,576 | $ | 42,757 | $ | 42,161 | ||||||||
Consumables | 10,044 | 11,715 | $ | 31,992 | $ | 34,165 | ||||||||||
Product revenue | 25,101 | 27,291 | $ | 74,749 | $ | 76,326 | ||||||||||
Service revenue | 3,487 | 2,273 | $ | 9,043 | $ | 6,166 | ||||||||||
License and grant revenue | 55 | 71 | 198 | 474 | ||||||||||||
Total revenue | 28,643 | 29,635 | 83,990 | 82,966 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of product revenue | 10,463 | 10,558 | 31,512 | 27,759 | ||||||||||||
Cost of service revenue | 967 | 863 | 2,529 | 2,321 | ||||||||||||
Research and development | 9,444 | 12,687 | 29,524 | 31,707 | ||||||||||||
Selling, general and administrative | 19,558 | 18,574 | 60,874 | 52,486 | ||||||||||||
Acquisition-related expenses | — | — | — | 10,696 | ||||||||||||
Gain on escrow settlement | (3,986 | ) | — | (3,986 | ) | — | ||||||||||
Total costs and expenses | 36,446 | 42,682 | 120,453 | 124,969 | ||||||||||||
Loss from operations | (7,803 | ) | (13,047 | ) | (36,463 | ) | (42,003 | ) | ||||||||
Gain from sale of investment in Verinata | — | 332 | — | 332 | ||||||||||||
Interest expense | (1,451 | ) | (1,453 | ) | (4,355 | ) | (3,894 | ) | ||||||||
Other expense, net | (377 | ) | (338 | ) | (889 | ) | (308 | ) | ||||||||
Loss before income taxes | (9,631 | ) | (14,506 | ) | (41,707 | ) | (45,873 | ) | ||||||||
Benefit from income taxes | 362 | 716 | 1,271 | 3,987 | ||||||||||||
Net loss | $ | (9,269 | ) | $ | (13,790 | ) | $ | (40,436 | ) | $ | (41,886 | ) | ||||
Net loss per share, basic and diluted | $ | (0.32 | ) | $ | (0.49 | ) | $ | (1.41 | ) | $ | (1.52 | ) | ||||
Shares used in computing net loss per share, basic and diluted | 28,758 | 28,085 | 28,677 | 27,613 |
September 30, 2015 | December 31, 2014 (1) | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 28,817 | $ | 33,713 | ||||
Short-term investments | 68,253 | 81,588 | ||||||
Accounts receivable, net | 26,248 | 22,384 | ||||||
Inventories | 19,141 | 15,991 | ||||||
Prepaid expenses and other current assets | 2,991 | 2,221 | ||||||
Total current assets | 145,450 | 155,897 | ||||||
Long-term investments | 17,033 | 27,499 | ||||||
Property and equipment, net | 14,358 | 13,889 | ||||||
Other non-current assets | 3,688 | 3,966 | ||||||
Developed technology, net | 93,850 | 102,200 | ||||||
Goodwill | 104,108 | 104,108 | ||||||
Total assets | $ | 378,487 | $ | 407,559 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,303 | $ | 5,919 | ||||
Accrued compensation and related benefits | 3,586 | 6,874 | ||||||
Other accrued liabilities | 9,413 | 9,664 | ||||||
Deferred revenue, current portion | 8,179 | 6,928 | ||||||
Total current liabilities | 27,481 | 29,385 | ||||||
Convertible notes, net | 195,626 | 195,455 | ||||||
Deferred tax liability, net | 24,118 | 26,152 | ||||||
Other non-current liabilities | 7,136 | 6,148 | ||||||
Total liabilities | 254,361 | 257,140 | ||||||
Total stockholders’ equity | 124,126 | 150,419 | ||||||
Total liabilities and stockholders’ equity | $ | 378,487 | $ | 407,559 |
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
Operating activities | ||||||||
Net loss | $ | (40,436 | ) | $ | (41,886 | ) | ||
Depreciation and amortization | 4,030 | 2,922 | ||||||
Stock-based compensation expense | 12,850 | 15,280 | ||||||
Amortization of developed technology | 8,400 | 7,000 | ||||||
Non-cash charges related to acquisition | — | 3,446 | ||||||
Gain on escrow settlement | (3,986 | ) | — | |||||
Gain from sale of investment in Verinata | — | (332 | ) | |||||
Other non-cash item | 223 | 83 | ||||||
Changes in assets and liabilities, net | (11,410 | ) | (5,611 | ) | ||||
Net cash used in operating activities | (30,329 | ) | (19,098 | ) | ||||
Investing activities | ||||||||
Acquisition, net of cash acquired | — | (113,190 | ) | |||||
Purchases of investments | (53,704 | ) | (106,672 | ) | ||||
Proceeds from sales and maturities of investments | 77,319 | 41,412 | ||||||
Proceeds from sale of investment in Verinata | — | 332 | ||||||
Purchase of intangible assets | (170 | ) | — | |||||
Purchases of property and equipment | (2,545 | ) | (5,919 | ) | ||||
Net cash provided by (used in) investing activities | 20,900 | (184,037 | ) | |||||
Financing activities | ||||||||
Proceeds from issuance of convertible notes, net | — | 195,212 | ||||||
Proceeds from exercise of stock options | 5,272 | 4,084 | ||||||
Net cash provided by financing activities | 5,272 | 199,296 | ||||||
Effect of foreign exchange rate fluctuations on cash and cash equivalents | (739 | ) | (483 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (4,896 | ) | (4,322 | ) | ||||
Cash and cash equivalents at beginning of period | 33,713 | 35,261 | ||||||
Cash and cash equivalents at end of period | $ | 28,817 | $ | 30,939 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net loss (GAAP) | $ | (9,269 | ) | $ | (13,790 | ) | $ | (40,436 | ) | $ | (41,886 | ) | ||||
Acquisition-related expenses | — | — | — | 10,696 | ||||||||||||
Gain on escrow settlement | (3,986 | ) | — | (3,986 | ) | — | ||||||||||
Stock-based compensation expense | 4,144 | 6,024 | 12,850 | 15,280 | ||||||||||||
Amortization of developed technology | 2,800 | 2,800 | 8,400 | 7,000 | ||||||||||||
Interest expense | 1,451 | 1,453 | 4,355 | 3,894 | ||||||||||||
Depreciation and amortization | 1,132 | 1,080 | 3,559 | 2,922 | ||||||||||||
Non-cash charge for sale of inventory revalued at the date of acquisition | — | 116 | — | 798 | ||||||||||||
Benefit from acquisition related income taxes | (710 | ) | (449 | ) | (2,324 | ) | (3,188 | ) | ||||||||
Gain on sale of investment in Verinata | — | (332 | ) | — | (332 | ) | ||||||||||
Loss on disposal of property and equipment | — | 16 | 93 | 83 | ||||||||||||
Net loss (Non-GAAP) | $ | (4,438 | ) | $ | (3,082 | ) | $ | (17,489 | ) | $ | (4,733 | ) | ||||
Shares used in net loss per share calculation - basic and diluted (GAAP and Non-GAAP) | 28,758 | 28,085 | 28,677 | 27,613 | ||||||||||||
Net loss per share - basic and diluted (GAAP) | $ | (0.32 | ) | $ | (0.49 | ) | $ | (1.41 | ) | $ | (1.52 | ) | ||||
Net loss per share - basic and diluted (Non-GAAP) | $ | (0.15 | ) | $ | (0.11 | ) | $ | (0.61 | ) | $ | (0.17 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Product margin (GAAP) | $ | 14,638 | $ | 16,733 | $ | 43,237 | $ | 48,567 | ||||||||
Amortization of developed technology | 2,800 | 2,800 | 8,400 | 7,000 | ||||||||||||
Depreciation and amortization | 260 | 214 | 775 | 652 | ||||||||||||
Non-cash charge for sale of inventory revalued at the date of acquisition | — | 116 | — | 798 | ||||||||||||
Stock-based compensation expense | $ | 412 | 443 | 1,420 | 1,149 | |||||||||||
Product margin (Non-GAAP) | $ | 18,110 | $ | 20,306 | $ | 53,832 | $ | 58,166 | ||||||||
Product margin percentage (GAAP) | 58.3 | % | 61.3 | % | 57.8 | % | 63.6 | % | ||||||||
Product margin percentage (Non-GAAP) | 72.1 | % | 74.4 | % | 72.0 | % | 76.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating expenses (GAAP) | 25,016 | 31,261 | 86,412 | 94,889 | ||||||||||||
Acquisition-related expenses | — | — | — | (10,696 | ) | |||||||||||
Gain on escrow settlement | 3,986 | — | 3,986 | — | ||||||||||||
Stock-based compensation expense | (3,732 | ) | (5,581 | ) | (11,430 | ) | (14,131 | ) | ||||||||
Depreciation and amortization | (872 | ) | (866 | ) | (2,784 | ) | (2,270 | ) | ||||||||
Loss on disposal of property and equipment | — | — | (93 | ) | — | |||||||||||
Operating expenses (Non-GAAP) | $ | 24,398 | $ | 24,814 | $ | 76,091 | $ | 67,792 |
Revenue growth, reported | (3 | )% | |
Impact of foreign exchange | 6 | % | |
Non-GAAP revenue growth, constant currency | 3 | % |
Three Months Ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||
Revenue: | |||||||||||||||||||||
Instruments | $ | 15,057 | $ | 14,532 | $ | 13,168 | $ | 18,092 | $ | 15,576 | $ | 13,194 | $ | 13,391 | |||||||
Consumables | 10,044 | 11,122 | 10,826 | 12,653 | 11,715 | 12,108 | 10,342 | ||||||||||||||
Product revenue | 25,101 | 25,654 | 23,994 | $ | 30,745 | $ | 27,291 | $ | 25,302 | $ | 23,733 | ||||||||||
Service revenue | 3,487 | 2,904 | 2,652 | 2,678 | 2,273 | 2,177 | 1,716 | ||||||||||||||
License and grant revenue | 55 | 60 | 83 | 67 | $ | 71 | 128 | 275 | |||||||||||||
Total revenue | $ | 28,643 | $ | 28,618 | $ | 26,729 | $ | 33,490 | $ | 29,635 | $ | 27,607 | $ | 25,724 | |||||||
Year-over-year instrument revenue growth | (3 | )% | 10 | % | (2 | )% | |||||||||||||||
Year-over-year instrument and service revenue growth | 4 | % | 13 | % | 5 | % |