Second Quarter Results: Abcam, Biotage, Fluidigm, HORIBA and Pacific Biosciences

Abcam Reports Double-Digit Growth in China

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Abcam revenues for the fiscal year ending June 30 amounted to £233.2 million ($319.5 million at £0.73 = $1). (See IBO 9/15/18.) The rise in operating profits and margin was thanks to the company’s depreciation and amortization falling 16.2%.

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Geographically, China was the only region that recorded double-digit growth in catalog revenue, at 25.0% to £33.0 million ($45.2 million). The Americas region was the most profitable in catalog revenue at £88.5 million ($121.2). For fiscal year 2019, Abcam forecasts 11% revenue growth.

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Biotage’s Analytical and Organic Chemistry Product Sales Leads Revenue Growth

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Despite a relatively weak SEK currency rate, Biotage’s second quarter organic sales rose 9.0% to SEK 236.1 million ($27.2 million at SEK 8.67 = $1). (See IBO 7/31//18.) On a reported basis, Systems and Aftermarket product sales accounted for 51% and 49% respectively, including a 50% increase in quarterly sales for the Isolera purification system in the US.

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Analytical Chemistry sales increased 47% to SEK 85.9 million ($9.9 million) due to the inclusion of Horizon Technology (see IBO 12/15/17). Organic Chemistry sales rose 14% to SEK 136.6 million ($15.8 million), with strong sales in India, EMEA and APAC. In contrast, Industrial product sales declined 24.7% as sales fell in Europe.

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Maxpar Human Immune Panel Sales Rise for Fluidigm

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In the second quarter, organic sales for Fluidigm increased 11% to $26.4 million due to an increase in both product and service revenues, partially offset by a decrease in license revenue. (See IBO 8/15/18.) It should be noted that foreign currency appreciation rates contributed 2 percentage points to the 11% increase in total revenue. Mass cytometry revenue increased 32% to $13.7 million, which included a 19% increase in consumables sales. The company attributed the rise of mass cytometry sales to instrument placements in pharmaceutical, translational research and cancer centers. Most notably, Fluidigm highlighted a milestone of instrument placements in 50% of the US’s comprehensive cancer centers. Regarding mass cytometry consumables, the increased revenue was due to high sales of the Maxpar Human Immune Monitoring Panel, which was launched in the second quarter.

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In contrast, genomics revenue decreased 5% to $12.8 million. Specifically, genomic products sales fell 3% to $10.5 million. The decrease in genomic product sales was due to lower sales of high-throughput genomics instrument and single-cell genomics product sales. In contrast, high-throughput genomic consumables sales increased.

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By region, highlights included China, which fell 21% due to timing of customer orders, accounted for 48% of the Asia-Pacific regional sales and 9% of global sales. UK revenue accounted for 29% of Europe regional sales and 10% of global sales. Both the UK and China were the only regions that had sales exceed 9% of total revenues during the quarter. Fluidigm forecasted that its third-quarter sales would be $29 million, a 9.73% increase.

 

HORIBA’S Americas Sales Benefit from Operation Investment

HORIBA’s combined revenues for its Scientific Instruments and Systems (SI), and Process and Environmental Instruments and Systems (P&E) businesses rose 7.7% in the second quarter to ¥10,289 million ($93.7 million at ¥109.8 = $1) to make up 22% of total company sales. (See IBO 8/15/18.)

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As was the case last quarter, SI sales were driven by the Americas and Japan. In the case of Japan and Europe, the increase in sales was thanks to high R&D spending. Despite the Americas being the second most profitable region for SI sales, the region did experience an operating loss of ¥545 million ($5.0 million) due to HORIBA investing in a stronger presence in the region. SI orders fell 1.4% to ¥5,938 million ($54.1 million). SI second half revenue is forecasted to rise 5.9% to ¥15,464 million ($140.8 million).

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Second quarter P&E revenue rose due to increased sales of water quality analyzers and air pollution analyzers in Asia. P&E orders grew 6.0% to ¥4,775 million ($43.5 million). P&E second half revenue is forecast to rise 4.3% to ¥9,751 million ($88.8 million).

 

NanoString’s Overall Revenue Falls Despite Strong System Sales

In the second quarter, NanoString Technologies revenues significantly decreased despite product and service revenues of $20.4 million. (See IBO 8/15/18.) One cause of the revenue decrease was the increased sales of the lower-priced nCount SPRINT system and the decreased sales of higher-priced FLEX and MAX instruments. Oncology clinics continued to be the largest clients for new instrument placements, accounting for 60%.

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Total consumables sales rose 16% to $12.8 million due to a 30% rise in sales of panel products and a 37% increase Prosigna IVD kits. Oncology panel sales of PanCancer immune profiling panel and PanCancer IO 360 panels increased 40%.

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Geographically, within the Americas, US revenue decreased 40.7% to $15.9 million. The Americas, Europe and Middle East, and Asia Pacific accounted for 57%, 28% and 14% of instrument revenue, respectively.

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Third quarter revenues are forecast to increase 15%–21% to $19.5–$20.5 million due to an anticipated sales increase of consumables and service, driven by the company’s Digital Spatial Profiling technology access program. Product and service revenue are forecast to be $79–$81 million, a 10%–13% increase. Collaboration revenue is expected to be around $6 million.

 

Pacific Biosciences’ Quarterly Goals Not Met Despite Strong Instrument Sales

Second quarter revenues for Pacific Biosciences rose 7% to $21.6 million due to strong Sequel instrument sales. (See IBO 8/15/18.) In total, Sequel instrument installations surpassed expectations with 275 instruments installed, a slight increase from the 250 instruments prediction. Roughly 30% of the Sequel instruments were installed in China.

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Despite strong instrument sales, Pacific Biosciences’ quarterly revenue predictions were not met, thanks to the sales of lower-priced Sequel consumables increasing and the decline of higher-priced RS II consumables sales. Specifically, Sequel consumables usage increased 90% by the company’s customers, while RS II consumables usage declined 50%. Also, the company did not have any large multi-unit orders for the quarter.

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Geographically, Pacific Biosciences once again emphasized the demand in China, thanks to the country utilizing its instruments and consumables in plant and animal sequencing projects. The overall Asia Pacific market made up 25% of total revenues. Due to the impending launch of Pacific Biosciences’ 8M SMRT Cell, the company is anticipating that its customers may postpone buying current products. With that in mind, the company decided not to provide a revenue forecast for the next quarter or the year.

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