Alpha Teknova, Inc.

Good day and thank you for standing by. Welcome to the TechNova second quarter 2022 financial results 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. Please be advised that today's conference is being recorded. I would now like to hand the conference over to the first speaker, Ms. Sarah Mishelmore.

Great. Thank you, operator. Welcome to TechNova's second quarter 2022 earnings conference call. With me on today's call are Stephen Gunstream, TechNova's president and chief executive officer, and Matt Lowell, TechNova's chief financial officer, who will make prepared remarks and then take your questions. As a reminder, the forward-looking statements that we make during this call, including those regarding business goals and expectations for the financial performance of the company, are subject to risks and uncertainties that may cause actual events or results to differ. Additional information concerning these risk factors is included in the press release the company issued earlier today, and they are more fully described in the company's various filings with the SEC. Today's comments reflect the company's current views, which could change as a result of new information, future events, or other factors, and the company does not obligate or commit itself to update these forward-looking statements except as required by law. The company's management believes that in addition to GAAP results, non-GAAP financial measures can provide meaningful insight when evaluating the company's financial performance and the effectiveness of its business strategies. During this call, we will therefore use non-GAAP financial measures of certain of our results. Reconciliations of GAAP to non-GAAP financial measures are included in the press release that we issued this afternoon, which is posted to Technova's website and at the www.sec.gov slash edgar. Non-GAAP financial measures should always be considered only as a supplement to and not as a substitute for or as superior to financial measures prepared in accordance with GAAP. The non-GAAP financial measures in this presentation may differ from similarly named non-GAAP financial measures used by other companies. Please also be advised that the company has posted a supplemental slide deck to accompany today's prepared remarks. It can be accessed on the investor relations section of TechNova's website and on today's webcast. And now I will turn the call over to Stephen.

Thank you, Sarah. Good afternoon and thank you everyone for joining us for our second quarter earnings call. Technova is a leading provider of critical reagents that accelerate the introduction of drug therapies, novel vaccines, and molecular diagnostics. We manufacture high quality customer agents with short turnaround times and are positioned to scale with our customers as they advance their products from discovery to commercialization. This is best exemplified in cell and gene therapy, where there is a significant need for custom-made reagents in volumes less than 1,000 liters. Our ability to manufacture custom clinical-grade bioprocessing solutions with short turnaround times enables our cell and gene therapy customers to reduce the time from discovery to clinical impact. Our interactions with current and potential customers continue to validate the growing need for high-quality custom research and clinical-grade solutions across the industry. and we're investing to meet the demand. Already, approximately 80 cell and gene therapy customers regularly use Technovus products with over 45 of those purchasing custom and or clinical grade reagents. We believe this provides us with a strong foundation for growth as their therapies advance through the development pipeline and into commercial production. The outlook for cell and gene therapy remains promising and there is a significant market for us to target today with over 1,900 therapies in early stages of clinical development. During Q2, we increased our existing manufacturing capacity and advanced the construction of our new state-of-the-art facility in Hollister, California. This facility remains on track to be operational by the end of 2022 and will give us the capacity to manufacture approximately an additional $150 million in product revenue annually. We expect to complete the initial phase of our build-out by the end of Q3 and to begin qualification activities later this fall. We continue to build our organization and have made nearly all the critical hires we require to execute our growth plan. Technova has grown significantly over the past year, and I want to thank all of our associates whose dedication has been and will continue to be critical to our success. During Q2, we also achieved record revenue and are pleased to have finished the first half of 2022 with strong revenue performances in both our lab essentials and clinical solutions portfolios. While we continue to see healthy demand across our broader customer base, we now expect lower than anticipated revenue in the second half of 2022. We believe this is due in a large part to certain of our early-stage biopharma customers deferring large purchases in both our lab essentials and clinical solutions portfolios. Specifically, these customers report that they are actively managing their near-term orders for products. We believe this may reflect company-specific efforts to extend cash runway in response to perceived challenges in the capital markets funding environment. Early-stage biopharma customers, including cell and gene therapy customers, do represent an important fast-growing end market for our custom and clinical-grade products. Our exposure to this customer segment is greater than some of our bioprocessing peers, but also positions us well to participate in what we believe to be a significant growth opportunity ahead. We are engaged with our customers, including those who have deferred orders, and they have expressed their intention to order from us in the future. We continue to expect to support them as they advance the development programs critical to their future success. While we have revised our 2022 revenue outlook, I want to reiterate our belief that the fundamental growth opportunity for Technova remains unchanged, and we are confident in our ability to help our customers accelerate the introduction of novel therapies through our unique ability to manufacture custom-made reagents in volumes less than 1,000 liters and with short turnaround times. Lastly, our balance sheet remains strong, and we have access to greater than $100 million in liquidity that will enable us to execute our growth strategy and achieve positive cash flow without the need to raise additional capital. I will now hand the call over to Matt for a discussion of financials.