Cytek Biosciences, Inc.

Good day, and thank you for standing by. Welcome to the Zytec Bioscientists Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw the question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker for today, Paul Goodson, Head of Investor Relations. Paul, please go ahead.

Thank you, Operator. Earlier today, SciTech Biosciences released financial preliminary results for the quarter ended September 30, 2023. If you haven't received this news release, or if you'd like to be added to the company's distribution list, please send an email to investors at scitechbio.com. Joining me today from SciTech are Wenbin Zhang, CEO, and Patrick Jean-Lenaud, CFO. Before we begin, I'd like to remind you that we will make statements during this call that are forward-looking statements within the meaning of the federal securities laws, including statements regarding CITAC's business plans, strategies, opportunities, and financial projections. These statements are based on the company's current expectations and inherently involve significant risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appears in the section entitled Forward Looking Statements in the press release CITEC issued today and in CITEC's SEC filings, including the upcoming Form 10-Q that is expected to be filed with the SEC on Thursday, November 9th, 2023. This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Reconciliation to the most directly comparable GAAP financial measure may be found in today's earnings release submitted to the SEC. Except as required by law, SITEC disclaims any duty to update any forward-looking statements, whether because of new information, future events, or changes in its expectations. This conference call contains time-sensitive information and is accurate only as of the live broadcast, November 7th, 2023. I would like to mention that SciTech will be hosting a number of flow cytometry events over the coming months. While these are primarily geared to our scientific user base, they may be of interest to our analysts and investors alike. These include the SciTech Reveal Roadshow, which is currently underway, several SciTech user group meetings, and a variety of industry conferences where we will have a product booth and we'll be sponsoring user outreach events. These events offer an opportunity for you to interact with users of our technology and get their comments directly on why they chose SciTech. We have a limited number of spaces to accommodate members of the financial community, so if you are interested in attending, please contact me. With that, I will turn the call over to Wenbin.

Thanks, Paul, and welcome everyone to our third quarter conference call. On the call today, I will discuss our results for the third quarter, as well as our progress across our four key strategic pillars to drive growth. Then I will turn the call over to Patrick for a more detailed look at our financials and an update on our outlook for 2023 before we open it up for Q&A. Starting with our third quarter results, against a difficult macro environment, we achieved $48.0 million of total revenue, representing growth of 19% year-over-year. This included approximately $6.8 million of revenue from the product lines acquired from the mix. Excluding acquisition-related revenue, our organic revenue was $41.2 million, a 2% increase year-over-year. We are pleased with the continued growth we saw in the third quarter from our reagent portfolio and the services. that we expect to be leading growth drivers for our business in the future. This positive trend is a testimony to the strong utilization of our instruments and the flywheel effect attached to them. In the third quarter, like many other companies, we were not immune to the increasing headwinds within our industry. where we experienced extended sales cycle and order delays. We expect this pressure to persist into the fourth quarter. As a result of these factors, we expect full-year revenue from our organic business to be approximately flat versus the prior year, and $25 to $30 million of revenue contributions from the business acquired from Luminex. Taken together, we expect full-year revenue in the range of $188 to $192 million, representing growth of 15% to 17% over the prior year. Patrick will provide more detail on our financial results momentarily. Despite this challenging backdrop, I'm pleased with our team's commitment to adapt and navigate this evolving environment. We remain focused on driving our product strategy forward and delivering commercial growth at profitable levels across our diversified revenue streams. We believe that the underlying interest in our full special profiling for FSP technology continues to be high, and we are making good progress with both new and existing customers in our pipeline. We are adjusting well-established markets across the scientific community where there is a large need for tools beyond the conventional. We are well-positioned to meet this demand as an industry leader offering an expansive product portfolio purpose-built to advance next-generation cell analysis. To deliver on our long-term objectives, we continue to focus our business on four key pillars, instruments, applications, bioinformatics, and the clinical. Starting with instruments, during the third quarter, we placed 119 instruments from our organic site portfolio, resulting in an installed base of 1,000 997 cited instruments, excluding the installed instruments of Amnesty Imaging and the Guava Microcapital product lines acquired from Luminex. We experienced slower growth in organic instrument sales in the third quarter due to more conservative customer spending patterns and experienced purchasing delays as a result. Despite this, we believe The customer interest in our proven instrument portfolio continues to be strong, and we remain focused on driving adoption. Longer term, we believe this growing installer base will provide us with a receptive market for new instruments that we intend to launch in the future.