Fluidigm fourth quarter revenue increases to $10.4 million

Fluidigm Corporation (NASDAQ:FLDM) today announced its financial results for the fourth quarter and full year ended December 31, 2010.

Total revenue for the fourth quarter of 2010 was $10.4 million, an increase of 36% from $7.6 million in the fourth quarter of 2009. Product revenue for the fourth quarter of 2010 was $9.6 million, an increase of 32% from $7.2 million in the fourth quarter of 2009. Net loss for the quarter was $3.1 million as compared to a $3.4 million net loss in the prior year quarter. Non-GAAP net loss for the fourth quarter of 2010 was $1.2 million as compared to $2.2 million for the fourth quarter of 2009. Non-GAAP net loss excludes stock-based compensation expense and certain other charges (see accompanying table for reconciliation of GAAP and non-GAAP measures).

For the full year, total revenue increased by 32% to $33.6 million compared to $25.4 million in 2009. Product revenue for the full year increased by 29% to $30.5 million compared to $23.6 million in 2009. Full year net loss was $16.9 million compared to a net loss of $19.1 million in 2009. Non-GAAP net loss for the full year 2010 was $11.2 million. Non-GAAP net loss for the full year 2009 was $13.9 million (see accompanying table for reconciliation of GAAP and non-GAAP measures).

"Our top line revenue growth and continued margin improvement in the quarter capped off a great year. This gives us a solid financial footing as we move into our new life as a public company," stated Gajus Worthington, Fluidigm CEO and president. "With the substantial cash raised in our recent IPO, we are in a great position to support new and existing customers with the passion and thoroughness we're known for, and to make our enabling products more available worldwide."

Additional Financial Highlights

• Product margin increased to 62% in 2010 from 51% in 2009, due principally to lower instrument material costs, higher chip capacity utilization and higher chip yields and product mix.
• Instrument/consumable mix was 68% and 32%, respectively, for the full year 2010 compared to 73% and 27% in 2009.
• Total revenue for 2010 includes approximately $1.6 million from upfront and milestone payments related to a collaboration agreement with Novartis for the development of in-vitro diagnostics applications, initially for non-invasive pre-natal diagnostics.
• Research and development expense was $13.0 million in 2010 compared to $12.3 million in 2009, an increase of 6%.
• Selling, general and administrative expense was $23.5 million in 2010 compared to $19.6 million in 2009, an increase of 20%, reflecting the expansion of the Company's sales and marketing infrastructure.

Business Highlights

• Fluidigm successfully completed its initial public offering and then began trading on NASDAQ under the symbol "FLDM" on February 10, 2011. The Company received net proceeds of approximately $80.3 million from the initial public offering, including proceeds from the underwriter overallotment option, net of underwriting discounts and commissions, and before estimated offering costs. Following receipt of the proceeds, the Company paid approximately $5.0 million to retire promissory notes that matured upon the closing of the public offering.
• In early February 2011, Fluidigm introduced its most advanced genomic analysis system, the BioMark™ HD Real-Time PCR System, providing sensitivity and throughput for studying gene expression down to the single cell level. The BioMark HD System is built on a high-throughput platform that delivers exceptional data quality and experimental flexibility, along with reduced sample-to-results times in a streamlined workflow.
• Throughout the year, Fluidigm announced several agreements with companies to promote and purchase Access Array™ technology as a key sample preparation system for targeted resequencing applications. Among these accords were a co-marketing agreement signed with Roche 454, a leader in the DNA sequencing market, and purchases by MLL Munich Leukemia Laboratory, IMGM Laboratories, Leiden University, and the National Cancer Institute.
• Also in 2010, Fluidigm introduced the world's first reusable bio-chip for the commercial market - the FR 48.48 Dynamic Array™ integrated fluidic circuit - and launched the FC1™ Cycler designed to reduce the thermal cycling time by a factor of three when compared with the Company's previous products. Together these products dramatically lower SNP genotyping costs and support accelerated sample throughput.

Financial Outlook

The Company currently expects full year 2011 product revenue to grow 25%-27% from full year 2010 product revenue of $30.5 million. The Company expects collaboration and grant revenue to range between $2.0 million and $3.0 million for the full year 2011. Historically, Fluidigm's product revenues have tended to be lowest in the first quarter and highest in the fourth quarter, reflecting numerous factors, including, among others, seasonal variations in customer operations and customer budget and capital spending cycles.

Source: Fluidigm Corporation