Fluidigm fourth quarter product revenue increases 25% to $15.4 million

Fluidigm Corporation (NASDAQ:FLDM) today announced its financial results for the fourth quarter and full year ended December 31, 2012.

Product revenue for the fourth quarter of 2012 was $15.4 million, an increase of 25% from $12.3 million in the fourth quarter of 2011. Product margin was 72% in the fourth quarter of 2012, up from 67% in the fourth quarter of 2011 and in-line with 72% in the third quarter of 2012. Total revenue for the fourth quarter of 2012 was $15.7 million, an increase of 21% from $13.0 million in the fourth quarter of 2011. Net loss for the fourth quarter of 2012 was $3.6 million, compared to a net loss of $3.5 million in the fourth quarter of 2011. Non-GAAP net loss for the fourth quarter of 2012 was $2.1 million, compared with $1.9 million non-GAAP net loss for the fourth quarter of 2011 (see accompanying table for reconciliation of GAAP and non-GAAP measures).

For the full year, product revenue increased by 27% to $51.5 million, compared to $40.6 million in 2011. Total revenue increased for the full year by 22% to $52.3 million, compared to $42.9 million in 2011. Full year net loss was $19.0 million compared to a net loss of $22.5 million in 2011. Non-GAAP net loss for the full year 2012 was $12.7 million, compared to a non-GAAP net loss of $11.6 million in 2011 (see accompanying table for reconciliation of GAAP and non-GAAP measures).

"In the quarter, we experienced significant momentum in the single-cell genomics market. The availability of the C₁™ Single-Cell Auto Prep System is catalyzing new areas of biological exploration by simplifying the handling and sample preparation of individual cells — a major roadblock to routine single-cell analysis. Since the C₁ launch through year end, we sold 36 C₁ systems and expect interest to continue to build in 2013 as we expand our menu of single-cell applications. In addition, approximately 60% of our BioMark™ HD system sales in the quarter were motivated by single-cell research," said Gajus Worthington, Fluidigm President and Chief Executive Officer.

"We are also seeing healthy demand from our production genomics customers who utilize our technology for high-throughput repeat testing applications, both in the human and agricultural genomics markets. Analytical systems (BioMark HD and EP1™) sales rebounded from the previous quarter and grew approximately 50% sequentially, driven by single-cell applications. Furthermore, Access Array™ system placements grew sequentially, driven by clinical laboratory applications such as HLA typing," continued Worthington.

Financial Highlights and Analysis

• Fluidigm ended the year with approximately $84 million in cash, cash equivalents, and investments.
• Fluidigm's instrument installed base was approximately 670 units at year-end.
• Analytical systems (BioMark, BioMark HD, and EP1) represented approximately 65% of the installed base and preparatory systems (Access Array and C₁) represented the remainder.
• Approximately 60% of the BioMark HD system sales during the quarter were motivated by single-cell research.
• Instrument revenue grew 30% year-on-year in the quarter and 16% for the full year 2012, driven primarily by strong market uptake of the C₁ system.
• Consumables pull-through was within its historical range of $40,000 - $50,000 per instrument/year for analytical systems, and $10,000 - $15,000 per instrument/year for preparatory systems.
• Consumables revenue grew 17% year-on-year in the quarter and 45% for the full year 2012.
• Geographic revenue as a percent of total product revenue in the fourth quarter of 2012 was as follows: United States - 48%; Europe - 32%; Asia-Pacific - 12%; Japan - 7%; and Other - 1%.

Business Highlights Since Fluidigm's Last Earnings Release

• Completed an oversubscribed C₁ Single-Cell Auto Prep System Early Access Program.
• Introduced the mRNA sequencing application on the C₁ Single-Cell Auto Prep System, expanding the C₁ system addressable opportunity to include next-generation sequencing customers.
• In partnership with the Genome Institute of Singapore, established the Single-Cell 'Omics Center — the first research center in Asia exclusively dedicated to accelerating the understanding of how individual cells work, and how diagnosis and treatment might be enhanced through insight derived from single cells.
• Placements of Access Array systems for sequencing sample preparation grew sequentially in the quarter driven by broadening adoption by clinical laboratory customers globally, representing over half of system placements in the quarter.
• The C₁ Single-Cell Auto Prep System won a 2012 GOOD DESIGN™ Award from the Chicago Athenaeum: Museum of Architecture and Design and The European Centre for Architecture Art Design and Urban Studies.

Financial Outlook

The Company is projecting 2013 total revenue growth guidance to be 22%-26% over 2012. Historically, Fluidigm's product revenues have tended to be lowest in the first quarter of the year and highest in the fourth quarter of the year. We expect the trend to continue in 2013.