Fluidigm Reports Strong Q1 2013 Results

  Fluidigm Reports Strong Q1 2013 Results

   Revenue Up 33% and Margins Increase 300 Basis Points Compared to Q1 2012

Business Wire

SOUTH SAN FRANCISCO, Calif. -- May 01, 2013

Fluidigm Corporation (NASDAQ:FLDM) today announced its financial results for
the first quarter ended March 31, 2013.

Total revenue for the first quarter of 2013 was $14.5 million, an increase of
33% from $10.9 million in the first quarter of 2012. Product margin was 70% in
the first quarter of 2013, compared to 67% in the first quarter of 2012. Net
loss for the first quarter of 2013 was $3.6 million, compared to a net loss of
$6.7 million in the first quarter of 2012. Non-GAAP net loss for the first
quarter of 2013 was $3.5 million, compared with $4.9 million non-GAAP net loss
for the first quarter of 2012 (see accompanying table for reconciliation of
GAAP and non-GAAP measures).

“Our revenue from single-cell genomics applications nearly doubled
year-over-year, primarily due to sales of our C[1]™ Single-Cell Auto Prep
System. In addition, single-cell gene expression motivated about 70% of our
BioMark™ HD sales. We continue to see a fundamental shift occurring in the
genomics market from studying bulk, heterogeneous cell samples to analyzing
individual cells, and Fluidigm is emerging as the leader in this exciting new
market,” said Gajus Worthington, Fluidigm President and Chief Executive
Officer. “Increased sales to high-throughput production genomics customers in
agricultural and clinical laboratory settings also contributed to growth in
the quarter,” continued Worthington.

Financial Highlights and Analysis

  *Fluidigm’s instrument installed base expanded to approximately 720 units
    at the end of Q1 2013.
  *Analytical systems (BioMark, BioMark HD, and EP1™) represented 64% of the
    installed base and preparatory systems (Access Array™ and C[1])
    represented the remainder.
  *Instrument revenue grew 34% year-on-year in the quarter, driven largely by
    sales of the C[1] Single-Cell Auto Prep System.
  *Consumables revenue grew 31% year-on-year in the quarter, driven by
    high-throughput production genomics customers.
  *Consumables pull-through was within its historical range of $40,000 –
    $50,000 per instrument/year for analytical systems, and was slightly above
    its historical range of $10,000 – $15,000 per instrument/year for
    preparatory systems.
  *Geographic revenue as a percent of total product revenue in the first
    quarter of 2013 was as follows: United States – 49%; Europe – 25%;
    Asia-Pacific – 13%; Japan – 10%; and Other – 3%.
  *Fluidigm ended the first quarter of 2013 with approximately $86.9 million
    in cash, cash equivalents, and investments.
  *Fluidigm received approximately $3.1 million in cash for its minority
    equity interest in Verinata Health, Inc. in connection with Verinata’s
    acquisition by Illumina, Inc.
  *Excluding the proceeds from the sale of the Verinata investment, Fluidigm
    was cash flow neutral for the first time in any quarterly period in the
    company’s history.

Business Highlights Since Fluidigm’s Last Earnings Release

  *The Sanger Institute-EBI Single Cell Genomics Centre, which was launched
    in April 2013, ordered a C[1] Single-Cell Auto Prep System and a BioMark
    HD System to support its single-cell genomics research.
  *Twelve single-cell publications referenced Fluidigm in the quarter, up
    from six the previous quarter. The total number of single-cell
    publications referencing Fluidigm is now over 70.
  *HLA typing emerged as a high-throughput production genomics application
    for Fluidigm’s Access Array System. The DKMS Life Science Lab (Deutsche
    Knochenmarkspenderdatei gemeinnützige Gesellschaft mbH) scaled its HLA
    typing operations to thousands of samples per week using Fluidigm’s Access
    Array Systems. Separately, a peer-reviewed publication in Tissue Antigens
    authored by Roche scientists delineated the value of the Access Array
    System for high-throughput HLA typing with NGS systems.
  *Fluidigm experienced growing demand for its custom assays business, in
    particular SNPtype™ assays, driven by production genomics customers.

Financial Outlook

Fluidigm is maintaining its 2013 total revenue growth guidance of 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.
This trend is expected to continue in 2013. Operating expenses in 2013 are
projected to be between $63 million and $66 million. Stock compensation
expense is projected to be between $5.5 million and $6.5 million. Capital
spending is projected to be between $4 million and $5 million. Total cash flow
is expected to be negative for 2013. We expect to break even at the EBITDA
level at quarterly revenue of approximately $20 million.

Conference Call Information

Fluidigm will host a conference call today, May 1, 2013 at 5:00 p.m. Eastern
Time. The call can be accessed by calling (877) 556-5248 (domestic toll-free)
or (720) 545-0029 (international toll). Fluidigm will also provide a live
stream of its first quarter of 2013 financial results conference call for
investors at: http://investors.fluidigm.com/events.cfm. The link will not be
active until 4:45 p.m. Eastern Time on May 1, 2013. A telephone replay of the
teleconference will be available 90 minutes after the end of the call at (855)
859-2056 (domestic toll-free), or (404) 537-3406 (international toll), access
code 53239282. The conference call will also be archived on the Fluidigm
investor’s page at: http://investors.fluidigm.com.

Statement Regarding Use of Non-GAAP Financial Information

Fluidigm has presented certain financial information in accordance with GAAP
and also on a non-GAAP basis for the first quarter of 2013 and 2012.
Management believes that non-GAAP financial measures, taken in conjunction
with GAAP financial measures, provide useful information for both management
and investors by excluding certain non-cash and other income and expenses that
are not indicative of the company’s core operating results. Management uses
non-GAAP measures to compare the company’s performance relative to forecasts
and strategic plans and to benchmark the company’s performance externally
against competitors. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and should only be used to supplement an
understanding of the company’s operating results as reported under U.S. GAAP.
Investors are encouraged to carefully consider Fluidigm’s results under GAAP,
as well as its supplemental non-GAAP information and the reconciliation
between these presentations, to more fully understand its business.
Reconciliations between GAAP and non-GAAP results are presented in the
accompanying table of this release.

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among others,
statements relating to the growth of the single-cell genomics market and
Fluidigm’s leadership position in the market; the launch and impact of new
products; current estimates of 2013 total revenue growth, operating expenses,
stock compensation expenses, capital spending, and cash flow; EBITDA break
even expectations; and trends regarding quarterly product revenues in 2013.
Forward-looking statements are subject to numerous risks and uncertainties
that could cause actual results to differ materially from currently
anticipated results, including but not limited to, risks relating to market
acceptance of our products; our ability to successfully launch new products
and applications; competition; our sales, marketing, and distribution
capabilities; our planned sales, marketing, and research and development
activities; reduction in research and development spending or changes in
budget priorities by customers; interruptions or delays in the supply of
components or materials for our products; seasonal variations in customer
operations; unanticipated increases in costs or expenses; and risk associated
with international operations. Information on these and additional risks,
uncertainties, and other information affecting our business and operating
results are contained in our Annual Report on Form 10-K for the year ended
December 31, 2012 and other filings with the Securities and Exchange
Commission. Additional information will also be set forth in our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2013 to be filed with the
Securities and Exchange Commission. These forward-looking statements speak
only as of the date hereof. Fluidigm Corporation disclaims any obligation to
update these forward-looking statements.

About Fluidigm

Fluidigm (NASDAQ:FLDM) develops, manufactures, and markets microfluidic
systems for growth markets in the life science and agricultural biotechnology,
or Ag-Bio, industries. Fluidigm’s proprietary microfluidic systems consist of
instruments and consumables, including integrated fluidic circuits (IFCs),
assays, and other reagents. These systems are designed to significantly
simplify experimental workflow, increase throughput, and reduce costs, while
providing the excellent data quality demanded by customers. Fluidigm actively
markets four microfluidic systems, including thirteen different commercial
IFCs, to leading academic institutions, clinical laboratories, and
pharmaceutical, biotechnology, and Ag-Bio companies. Fluidigm products are
marketed and sold: “For Research Use Only. Not for use in diagnostic
procedures.”

For more information, please visit www.fluidigm.com.

Fluidigm, the Fluidigm logo, C[1], BioMark, EP1, Access Array, and SNPtype are
trademarks or registered trademarks of Fluidigm Corporation.


FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

                                                 Three Months Ended March 31,
                                                    2013          2012   
Revenue:
Instruments                                       $  7,905         $  5,900
Consumables                                         6,349          4,856  
Product revenue                                      14,254           10,756
License and grant revenue                           281            189    
Total revenue                                        14,535           10,945
Costs and expenses:
Cost of product revenue                              4,259            3,546
Research and development                             4,197            4,279
Selling, general and administrative                 11,146         9,403  
Total costs and expenses                            19,602         17,228 
Loss from operations                                 (5,067  )        (6,283 )
Gain from sale of investment in Verinata             1,777            -
Interest expense                                     (10     )        (307   )
Other expense, net                                  (213    )       (61    )
Loss before income taxes                             (3,513  )        (6,651 )
Provision for income taxes                          (38     )       (39    )
Net loss                                            (3,551  )       (6,690 )
                                                                   
Net loss per share, basic and diluted             $  (0.14   )     $  (0.33  )
                                                                   
Shares used in computing net loss per share,        25,242         20,394 
basic and diluted
                                                                   


FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                    
                                                       
                                      March 31, 2013   December 31, 2012 [(1)]
                                      (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents             $    61,815      $        58,649
Short-term investments                     17,755               21,362
Accounts receivable, net                   10,056               12,900
Inventories                                7,371                7,169
Prepaid expenses and other current        1,560               1,131
assets
Total current assets                       98,557               101,211
Long-term investments                      7,298                3,666
Property and equipment, net                5,019                4,974
Other non-current assets                  2,363               3,881
Total assets                          $    113,237     $        113,732
                                                       
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable                      $    3,214       $        2,555
Accrued compensation and related           2,246                2,877
benefits
Other accrued liabilities                  4,149                4,279
Deferred revenue, current portion         1,928               1,886
Total current liabilities                  11,537               11,597
Other non-current liabilities             1,576               1,478
Total liabilities                          13,113               13,075
Total stockholders' equity                100,124             100,657
Total liabilities and stockholders'   $    113,237     $        113,732
equity
                                                       
(1) Derived from audited consolidated financial statements.
                                                       


FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                               
                                                  Three Months Ended March 31,
                                                    2013          2012    
Operating Activities
Net loss                                          $  (3,551  )     $ (6,690  )
Depreciation and amortization                        584             518
Stock-based compensation expense                     1,255           935
Gain from sale of investment in Verinata             (1,777  )       -
Other non-cash items                                 -               25
Changes in assets and liabilities, net              2,605         (1,431  )
Net cash used in operating activities                (884    )       (6,643  )
                                                                   
Investing Activities
Purchases of investments                             (7,414  )       (19,393 )
Proceeds from sales and maturities of                7,390           24,360
investments
Proceeds from sale of investment in Verinata         3,117           -
Purchases of property and equipment                 (698    )      (397    )
Net cash provided by investing activities            2,395           4,570
                                                                   
Financing Activities
Proceeds from exercise of stock options              1,767           780
Repayment of long-term debt                         -             (3,818  )
Net cash provided by (used in) financing             1,767           (3,038  )
activities
                                                                   
Effect of foreign exchange rate fluctuations on     (112    )      54      
cash and cash equivalents
Net increase (decrease) in cash and cash             3,166           (5,057  )
equivalents
Cash and cash equivalents at beginning of           58,649        13,553  
period
Cash and cash equivalents at end of period        $  61,815       $ 8,496   
                                                                   


FLUIDIGM CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION [(1)]
(In thousands, except per share amounts)
(Unaudited)
                                                               
                                                  Three Months Ended March 31,
                                                    2013           2012   
                                                                   
Net loss (GAAP)                                   $  (3,551  )     $  (6,690 )
Gain from sale of investment in Verinata             (1,777  )        -
Stock-based compensation expense                     1,255            935
Depreciation and amortization                        584              518
Interest expense                                     10               307
Loss on disposal of property and equipment          -              25     
Net loss (Non-GAAP)                               $  (3,479  )     $  (4,905 )
Shares used in net loss per share calculation -     25,242         20,394 
basic and diluted (GAAP and Non-GAAP)
                                                                   
Net loss per share - basic and diluted (GAAP)     $  (0.14   )     $  (0.33  )
Net loss per share - basic and diluted            $  (0.14   )     $  (0.24  )
(Non-GAAP)
                                                                             


(1) The Company reports non-GAAP results which exclude gain from sale of
investment in Verinata, stock-based compensation expense, depreciation of
property and equipment, amortization of license agreement rights, and
amortization of debt discount and interest expense related to long-term debt.


Contact:

Fluidigm Corporation
Un Kwon-Casado, CFA
VP, Corporate Development
650-266-6035 (Office)
un.kwon-casado@fluidigm.com
 
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