Categories: News

Fluidigm Announces Fourth Quarter and Full Year 2021 Financial Results 

SOUTH SAN FRANCISCO, Calif., Feb. 17, 2022 (GLOBE NEWSWIRE) — Fluidigm Corporation (Nasdaq: FLDM), an innovative biotechnology tools provider with a vision to improve life through comprehensive health insight, today announced financial results for the fourth quarter and full year ended December 31, 2021.  

“We are pleased with our performance in the fourth quarter as we made significant progress mitigating ongoing supply chain issues and getting as many products as possible into the hands of our customers,” said Chris Linthwaite, President and CEO. “Our team addressed several supply chain bottlenecks and worked through a substantial backlog of unfilled orders, particularly in the APAC region.”

Linthwaite continued, “During the quarter, we saw record consumables sales and quarterly instrument placements in mass cytometry, as well as significant OEM instrument shipments and consumables sales within microfluidics. Overall, our base business continued to show solid recovery and we continued to execute on key strategic initiatives, including platform development, menu expansion and nurturing and expanding OEM relationships.”

Dr. Carlos V. Paya, chairman of the Fluidigm Board of Directors, said, “The proposed strategic cash infusion that we announced in January 2022 will position us with the capital to further execute on our strategy. This capital investment will help make it possible for us to more effectively leverage our product portfolio and R&D capabilities to expand market share in key markets while growing revenue with a keen focus on improved profitability.”

On January 24, the company announced that its Board of Directors unanimously approved a $250 million investment, inclusive of $25 million previously raised in the form of convertible unsecured term loans, by leading life sciences investors Casdin Capital, LLC, and Viking Global Investors LP. The investment is expected to significantly advance Fluidigm’s mission through new organic and inorganic growth initiatives while optimizing its cost structure. Upon the closing of the investment, Fluidigm will change its name to Standard BioTools Inc., better reflecting its ambitions to become an essential solutions partner to the life sciences industry focused on the highest-growth areas of biological discovery and development. Additionally, Dr. Michael Egholm will succeed Linthwaite as President, CEO and Board member, and Alex Kim will join as Chief Operating Officer, upon the closing of the investment.

The investment is subject to the satisfaction of customary closing conditions, including approval by Fluidigm stockholders.

In light of the pending investment and associated proposed leadership changes, Fluidigm will not conduct an earnings teleconference today, nor will it provide financial guidance at this time. In lieu of hosting a teleconference, Fluidigm is providing additional details on its fourth quarter and full year financial results within this news release.

Recent Highlights 

Innovation: 

  • Sold 12 CyTOF® XT systems in Q4 2021 for a total of 22 since launch.
  • Received pre-orders for new Biomark™ X instruments with shipments expected in Q1 2022. 

Partnerships: 

  • Announced a collaboration agreement with the Abu Dhabi Stem Cells Center for research applications utilizing Fluidigm’s Imaging Mass Cytometry™ and the Maxpar® Direct™ Immune Profiling Assay™.
  • Shipped 37 Olink® Signature Q100 benchtop instrument systems designed and manufactured by Fluidigm in Q4 2021. 

Beachheads: 

  • At quarter end, more than 188 clinical trials were underway using CyTOF technology. 
  • Total publications and preprints involving CyTOF technology exceeded 1,846, including 179 publications and preprints for Imaging Mass Cytometry, as of the end of Q4 2021. 
  • Announced that the Advanta™ Dx SARS-CoV-2 RT-PCR Assay on the company’s Biomark HD platform can detect the Omicron variant of COVID-19. 

Fourth Quarter 2021 Financial Results  

Total revenue was $38.3 million for the quarter ended December 31, 2021, compared with $44.6 million for the fourth quarter of 2020. Base product and service revenue (excluding COVID-19 testing revenue) increased 13.5 percent to $35.3 million, compared with $31.1 million in the same period last year.

GAAP net loss for the quarter was $9.4 million, compared with a GAAP net loss of $18.0 million for the fourth quarter of 2020.  

Non-GAAP net loss was $0.8 million for the quarter, compared with a non-GAAP net loss of $9.8 million for the fourth quarter of 2020.  

Additional Detail on Fourth Quarter 2021 Financial Results

  • Mass cytometry product and service revenue of $21.2 million for the quarter was up 8 percent over the year-ago period, due to increased service, instrument and consumables revenue. Instrument placements reached a new record in the fourth quarter.
  • Base microfluidics product and service revenue, which excludes COVID-19 testing revenue, increased 22 percent to $14.1 million, compared with $11.6 million for the year-ago period. The increase in base product and service revenue was driven by continued recovery in consumables and instrument sales, inclusive of significant instrument unit shipments to the company’s OEM partner.
  • Service revenue of $7.0 million posted yet another quarterly record and was 14 percent higher than the $6.1 million in the year-ago period driven by growth in instrument service contracts and higher fee for service activities.
  • COVID-19 testing revenue declined 70.2 percent to $2.8 million, compared with $9.4 million for the year-ago period.
  • GAAP product and service margin was 52.7 percent, compared with 54.6 percent for the year-ago period. Non-GAAP product and service margin was 61.8 percent, compared with 62.7 percent for the year-ago period. The year-over-year decrease in non-GAAP product and service margin was primarily due to unfavorable product mix from higher sales of our OEM instruments and lower COVID-19 consumables sales coupled with lower mass cytometry instrument pricing. The decrease was partially offset by higher capacity utilization for mass cytometry instruments and lower reserves for slow-moving and obsolete inventory. GAAP product and service margin on a year-over-year basis was negatively impacted by fixed amortization over lower revenue in addition to the factors described above.
  • GAAP operating expenses were $31.5 million compared with $43.1 million for the year-ago period. Non-GAAP operating expenses were $26.7 million compared with $38.3 million for the year-ago period. The year-over-year decrease in GAAP and non-GAAP operating expenses was primarily due to lower variable employee compensation and litigation expenses.
  • Backlog declined from $9.1 million at the end of the third quarter of 2021 to $3.1 million at the end of the fourth quarter of 2021. This was primarily driven by delivery of mass cytometry instruments to customers in China related to clearances of tax exemption certificates, and microfluidics instruments to the company’s OEM partner.

Revenue by geographic area:        

  • Americas revenue declined by 27 percent to $16.2 million, primarily driven by significantly lower COVID-19 testing revenue.
  • EMEA revenue was flat at $14.3 million, driven by a 14 percent increase in mass cytometry instrument sales, offset by a 12 percent decline in overall consumables. Changes in foreign exchange rates reduced the year-over-year growth by approximately 2 percentage points.
  • Asia-Pacific revenue decreased 5 percent to $7.8 million. This decline was driven by continued regional lockdowns, travel restrictions and disruptions, particularly in Japan, where government funding for research instrument purchases was diverted for other purposes, leading to a decline in instrument sales.

Full Year 2021 Financial Results  
Total revenue for the full year 2021 was $130.6 million, compared with $138.1 million for 2020. Base product and service revenue (excluding COVID-19 testing revenue) increased 12 percent to $112.4 million, compared with $100.1 million for 2020.

GAAP net loss for the full year 2021 was $59.2 million, compared with a GAAP net loss of $53.0 million for 2020. 

Non-GAAP net loss was $26.7 million for 2021, compared with a non-GAAP net loss of $21.8 million for 2020.

Cash and cash equivalents and restricted cash as of December 31, 2021, totaled $29.5 million, compared with $30.3 million as of September 30, 2021. During the fourth quarter of 2021, we borrowed $6.8 million from our asset-based revolving credit facility, all of which was outstanding as of year-end 2021. The remaining availability from the credit facility as of year-end was $2.7 million. The contemplated transaction announced on January 24, 2022, and noted above, subject to closing, is expected to result in gross proceeds to the company of approximately $250 million, before transaction costs, inclusive of $25 million received in January 2022 in the form of convertible term loans.

Additional Detail on Full Year 2021 Financial Results

  • Mass cytometry product and service revenue of $67.7 million for the year was up 9 percent over 2020 driven primarily by sales of the new CyTOF XT™ system and our Hyperion™ Imaging System as well as service and consumables revenue.
  • Base microfluidics product and service revenue, which excludes COVID-19 testing revenue, increased 18 percent to $44.7 million, compared with $38.0 million for 2020 primarily due to the launch of our OEM instrument and higher consumables revenue.
  • Service revenue of $25.9 million was 14.8 percent higher than the $22.6 million reported for 2020.
  • COVID-19 testing revenue declined 38 percent to $13.9 million, compared with $22.4 million for 2020.
  • Other Revenue declined $11.3 million due to the completion of underlying contracts in 2021 and the absence of a patent settlement that occurred in the first quarter of 2020.
  • GAAP product and service margin was 51.5 percent, compared with 55.3 percent for 2020. Non-GAAP product and service margin was 62.2 percent, compared with 66.1 percent for 2020. GAAP and non-GAAP product and service margins were impacted by lower average selling prices for mass cytometry instruments; unfavorable product mix from higher sales of our OEM instrument and lower COVID-19 consumables sales; and the absence of COVID-19 related government subsidies.
  • GAAP operating expenses were $136.8 million compared with $134.4 million for 2020. Non-GAAP operating expenses were $118.6 million compared with $117.0 million for 2020. The increase in GAAP operating expenses is primarily driven by higher compensation and benefits and marketing program expenses. Non-GAAP operating expenses exclude depreciation and stock-based compensation costs.

Revenue by geographic area:        

  • Americas revenue declined by 14 percent to $63.9 million, primarily driven by significantly lower COVID-19 testing revenue and lower development, grant and license revenue, partially offset by higher consumables and service revenue. The reduction in development, grant and license revenue reflects the completion of the underlying contracts in 2021 and the absence of a patent settlement.
  • EMEA revenue grew 13 percent to $42.7 million, driven by a 39 percent increase in instrument sales, partially offset by a 4 percent decline in overall consumables. Changes in foreign exchange rates contributed approximately 3 percentage points to the year-over-year growth.
  • Asia-Pacific revenue decreased 7 percent to $24.0 million. This decline was driven by regional lockdowns and disruptions, travel restrictions and diversion of research funding in Japan for other purposes, leading to an overall decline in instrument sales.

A reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release. 

Supplemental Financial Information updated through December 31, 2021, as well as an investor presentation, has been posted on our website concurrent with this release.

Statement Regarding Use of Non-GAAP Financial Information 
Fluidigm has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-and twelve-month periods ended December 31, 2021, and December 31, 2020. 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 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. The time and amount of certain material items needed to estimate non-GAAP financial measures are inherently unpredictable or outside of our control. Material changes to any of these items could have a significant effect on guidance and future GAAP results. 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. Fluidigm encourages investors to carefully consider its 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 operating results are presented in the accompanying tables of this release.  

Use of Forward-Looking Statements
This press release and associated presentations contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding trends in demand for Fluidigm products, expectations for closing of a financing transaction (the “Transaction”), including uses of proceeds from the Transaction, personnel expected to join Fluidigm upon closing of the Transaction, changes in Fluidigm’s branding and strategy following closing of the Transaction, potential organic and inorganic growth initiatives, and plans for investment and strategic initiatives. 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 the potential adverse effects of the coronavirus pandemic on our business and operating results; any failure to obtain required stockholder approval of the Transaction; the possibility that the conditions to the closing of the Transaction are not satisfied; potential litigation relating to the Transaction; uncertainties as to the timing of the consummation of the Transaction; the ability of each party to consummate the Transaction; possible disruption related to the Transaction to Fluidigm’s current plans and operations, including through the loss of customers, suppliers and employees; changes in Fluidigm’s business or external market conditions; customers and prospective customers continuing to curtail or suspend activities utilizing our products; our ability and/or the ability of the research institutions utilizing our products and technology to obtain and maintain Emergency Use Authorization from the FDA and any other requisite authorizations or approvals to use our products and technology for diagnostic testing purposes; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; interruptions or delays in the supply of components or materials for, or manufacturing of, Fluidigm products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; Fluidigm research and development and distribution plans and capabilities; interruptions or delays in the supply of components or materials for, or manufacturing of, Fluidigm products; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. Information on these and additional risks and uncertainties and other information affecting Fluidigm’s business and operating results is contained in its Annual Report on Form 10-K for the year ended December 31, 2020, and in its other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Fluidigm disclaims any obligation to update these forward-looking statements except as may be required by law.

Additional Information and Where to Find It
On February 14, 2022, Fluidigm filed a preliminary proxy statement in connection with a Special Meeting of Stockholders to consider Transaction (the “Special Meeting”). Prior to the Special Meeting, Fluidigm will furnish a definitive proxy statement to its stockholders, together with a WHITE proxy card. STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Detailed information regarding the names, affiliations and interests of individuals who are participants in the solicitation of proxies of Fluidigm’s stockholders is available in Fluidigm’s preliminary proxy statement.

Stockholders may obtain, free of charge, Fluidigm’s proxy statement (in both preliminary and definitive form), any amendments or supplements thereto, and any other relevant documents filed by Fluidigm with the Securities and Exchange Commission (the “SEC”) in connection with the Special Meeting at the SEC’s website (http://www.sec.gov). Copies of Fluidigm’s definitive proxy statement, any amendments or supplements thereto, and any other relevant documents filed by Fluidigm with the SEC in connection with the Transaction will also be available, free of charge, at Fluidigm’s investor relations website (http://investors.fluidigm.com) or by writing to Fluidigm Corporation, Attention: Investor Relations, 2 Tower Place, Suite 2000, South San Francisco, CA 94080.

About Fluidigm 
Fluidigm (Nasdaq:FLDM) focuses on the most pressing needs in translational and clinical research, including cancer, immunology, and immunotherapy. Using proprietary CyTOF and microfluidics technologies, we develop, manufacture, and market multi-omic solutions to drive meaningful insights in health and disease, identify biomarkers to inform decisions, and accelerate the development of more effective therapies. Our customers are leading academic, government, pharmaceutical, biotechnology, plant and animal research, and clinical laboratories worldwide. Together with them, we strive to increase the quality of life for all. For more information, visit fluidigm.com

Fluidigm, the Fluidigm logo, Advanta, Biomark, CyTOF, CyTOF XT, Direct, Hyperion, Imaging Mass Cytometry, Immune Profiling Assay, and Maxpar are trademarks and/or registered trademarks of Fluidigm Corporation or its affiliates in the United States and/or other countries. All other trademarks are the sole property of their respective owners. The Advanta Dx SARS-CoV-2 RT-PCR Assay is for In Vitro Diagnostic Use. It is for Use under Emergency Use Authorization Only. Rx Only. Other Fluidigm products are provided for Research Use Only. Not for use in diagnostic procedures. 

Available Information 
We use our website (fluidigm.com), investor site (investors.fluidigm.com), corporate Twitter account (@fluidigm), Facebook page (facebook.com/Fluidigm), and LinkedIn page (linkedin.com/company/fluidigm-corporation) as channels of distribution of information about our products, our planned financial and other announcements, our attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and we may use these channels to comply with our disclosure obligations under Regulation FD. Therefore, investors should monitor our website and our social media accounts in addition to following our press releases, SEC filings, public conference calls, and webcasts. 

Contacts: 
Investors: 
Peter DeNardo 
415 389 6400 
ir@fluidigm.com 

Media: 
Mark Spearman 
Corporate Communications 
650 243 6621 
mark.spearman@fluidigm.com

FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
                 
    Three Months Ended
December 31,
  Twelve Months Ended
December 31,
      2021       2020       2021       2020  
Revenue:                
Product revenue   $ 31,084     $ 34,348     $ 100,376     $ 99,944  
Service revenue     6,988       6,122       25,917       22,579  
Product and service revenue     38,072       40,470       126,293       122,523  
Other revenue (1)     193       4,138       4,288       15,621  
Total revenue     38,265       44,608       130,581       138,144  
Costs and expenses:                
Cost of product revenue     15,595       15,631       53,315       47,527  
Cost of service revenue     2,428       2,760       7,893       7,291  
Cost of product and service revenue     18,023       18,391       61,208       54,818  
Research and development     8,541       11,186       37,944       36,461  
Selling, general and administrative     22,960       31,935       98,888       97,901  
Total costs and expenses     49,524       61,512       198,040       189,180  
Loss from operations     (11,259 )     (16,904 )     (67,459 )     (51,036 )
Interest expense     (1,072 )     (890 )     (3,823 )     (3,572 )
Surplus funding from NIH Contract     2,140             7,140        
Loss from extinguishment of debt                 (9 )      
Other income (loss), net     (52 )     755       491       507  
Loss before income taxes     (10,243 )     (17,039 )     (63,660 )     (54,101 )
Income tax benefit (expense)     814       (987 )     4,423       1,081  
Net loss   $ (9,429 )   $ (18,026 )   $ (59,237 )   $ (53,020 )
Net loss per share, basic and diluted   $ (0.12 )   $ (0.24 )   $ (0.78 )   $ (0.74 )
Shares used in computing net loss per share, basic and diluted     76,652       74,277       75,786       72,044  
                 
(1) Other revenue includes development, grant and license revenue
 

FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
         
    December 31,
      2021     2020 (1)
ASSETS        
Current assets:        
Cash and cash equivalents (2)   $ 28,451     $ 68,520  
Accounts receivable, net     18,320       25,423  
Inventories, net     20,825       19,689  
Prepaid expenses and other current assets     4,470       4,031  
Total current assets     72,066       117,663  
Property and equipment, net     28,034       17,531  
Operating lease right-of-use asset, net     37,119       38,114  
Other non-current assets     3,689       4,680  
Developed technology, net     27,927       40,206  
Goodwill     106,379       106,563  
Total assets   $ 275,214     $ 324,757  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable   $ 10,602     $ 9,220  
Accrued compensation and related benefits     4,920       13,787  
Operating lease liabilities, current     3,053       2,973  
Deferred revenue, current     11,947       13,475  
Deferred grant income, current     3,535       2,912  
Other accrued liabilities     8,673       11,882  
Advances under revolving credit agreement, current     6,838        
Total current liabilities     49,568       54,249  
Term loan, net     10,049        
Convertible notes, net     54,160       54,224  
Deferred tax liability     4,329       8,697  
Operating lease liabilities, non-current     37,548       38,178  
Deferred revenue, non-current     5,966       7,990  
Deferred grant income, non-current     18,116       21,036  
Other non-current liabilities     882       1,333  
Total liabilities     180,618       185,707  
Total stockholders’ equity     94,596       139,050  
Total liabilities and stockholders’ equity   $ 275,214     $ 324,757  
         
         
(1) Derived from audited consolidated financial statements        
(2) Cash and cash equivalents and restricted cash consists of:        
Cash and cash equivalents   $ 28,451     $ 68,520  
Restricted cash (included in prepaid and other current assets, and other non-current assets)     1,016       1,016  
Total cash and cash equivalents and restricted cash   $ 29,467     $ 69,536  
         
 
FLUIDIGM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
         
    Twelve Months Ended
December 31,
      2021       2020  
Operating activities        
Net loss   $ (59,237 )   $ (53,020 )
Stock-based compensation expense     16,101       14,451  
Amortization of developed technology     11,918       11,910  
Depreciation and amortization     3,653       4,014  
Loss from extinguishment of debt     9        
Loss on disposal of property and equipment     12       212  
Other non-cash items     3,416       4,602  
Change in assets and liabilities, net     (19,933 )     2,414  
Net cash used in operating activities     (44,061 )     (15,417 )
         
Investing activities        
Proceeds from NIH Contract     1,318       21,036  
Acquisition, net of cash acquired           (5,154 )
Proceeds from sale of investments           5,010  
Proceeds from maturities of investments           31,800  
Purchases of property and equipment, net     (13,264 )     (12,717 )
Net cash provided by (used in) investing activities     (11,946 )     39,975  
         
Financing activities        
Proceeds from term loan     10,000        
Proceeds from advances under revolving credit agreement     6,838        
Proceeds from issuance of common stock, net of commissions           20,226  
Repayment of long-term debt     (501 )      
Payments of debt and equity issuance costs     (79 )     (684 )
Proceeds from (payments for) employee equity programs, net     (299 )     1,315  
Net cash provided by financing activities     15,959       20,857  
         
Effect of foreign exchange rate fluctuations on cash and cash equivalents     (21 )     385  
Net increase (decrease) in cash and cash equivalents and restricted cash     (40,069 )     45,800  
Cash and cash equivalents and restricted cash at beginning of period     69,536       23,736  
Cash and cash equivalents and restricted cash at end of period   $ 29,467     $ 69,536  
         
Cash and cash equivalents and restricted cash consists of:        
Cash and cash equivalents   $ 28,451     $ 68,520  
Restricted cash (included in prepaid and other current assets, and other non-current assets)     1,016       1,016  
Total cash and cash equivalents and restricted cash   $ 29,467     $ 69,536  
         

FLUIDIGM CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share amounts)
(Unaudited)
                 
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET LOSS
                 
    Three Months Ended
December 31,
  Twelve Months Ended
December 31,
      2021       2020       2021       2020  
Net loss (GAAP)   $ (9,429 )   $ (18,026 )   $ (59,237 )   $ (53,020 )
Stock-based compensation expense     4,363       4,093       16,101       14,451  
Amortization of developed technology (a)     2,974       2,981       11,918       11,910  
Depreciation and amortization     909       1,026       3,653       4,014  
Interest expense (b)     1,072       890       3,823       3,572  
Loss on disposal of property and equipment     6       21       12       212  
Loss from extinguishment of debt                 9        
Benefit from acquisition related income taxes (c)     (742 )     (742 )     (2,968 )     (2,968 )
Net loss (Non-GAAP)   $ (847 )   $ (9,757 )   $ (26,689 )   $ (21,829 )
Shares used in net loss per share calculation – basic and diluted (GAAP and Non-GAAP)     76,652       74,277       75,786       72,044  
                 
Net loss per share – basic and diluted (GAAP)   $ (0.12 )   $ (0.24 )   $ (0.78 )   $ (0.74 )
Net loss per share – basic and diluted (Non-GAAP)   $ (0.01 )   $ (0.13 )   $ (0.35 )   $ (0.30 )
                 
                 
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT AND SERVICE MARGIN
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
      2021       2020       2021       2020  
Product and service gross profit (GAAP)   $ 20,049     $ 22,079     $ 65,085     $ 67,705  
Amortization of developed technology (a)     2,972       2,800       11,372       11,200  
Depreciation and amortization (d)     317       415       1,478       1,630  
Stock-based compensation expense (d)     183       100       597       412  
Product and service gross profit (Non-GAAP)   $ 23,521     $ 25,394     $ 78,532     $ 80,947  
                 
Product and service margin percentage (GAAP)     52.7 %     54.6 %     51.5 %     55.3 %
Product and service margin percentage (Non-GAAP)     61.8 %     62.7 %     62.2 %     66.1 %
                 
                 
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP OPERATING EXPENSES
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
      2021       2020       2021       2020  
Operating expenses (GAAP)   $ 31,501     $ 43,121     $ 136,832     $ 134,362  
Stock-based compensation expense (e)     (4,180 )     (3,993 )     (15,504 )     (14,039 )
Depreciation and amortization (e)     (593 )     (792 )     (2,720 )     (3,094 )
Loss on disposal of property and equipment     (6 )     (21 )     (12 )     (212 )
Operating expenses (Non-GAAP)   $ 26,722     $ 38,315     $ 118,596     $ 117,017  
                 
                 
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP LOSS FROM OPERATIONS
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
      2021       2020       2021       2020  
Loss from operations (GAAP)   $ (11,259 )   $ (16,904 )   $ (67,459 )   $ (51,036 )
Stock-based compensation expense     4,363       4,093       16,101       14,451  
Amortization of developed technology (a)     2,974       2,981       11,918       11,910  
Depreciation and amortization     909       1,026       3,653       4,014  
Loss on disposal of property and equipment     6       21       12       212  
Loss from operations (Non-GAAP)   $ (3,007 )   $ (8,783 )   $ (35,775 )   $ (20,449 )
                 
                 
(a) represents amortization of developed technology in connection with the DVS and InstruNor acquisitions
(b) represents interest expense, primarily on convertible debt and the term loan
(c) represents the tax impact on the purchase of intangible assets in connection with the DVS acquisition
(d) represents expense associated with cost of product and service revenue
(e) represents expense associated with research and development, selling, general and administrative activities

 

 

Staff

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