Asia Experience Biggest Percentage Sales Increase of Biotage Products

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Biotage reported strong third quarter revenues, which exceeded the company’s expectations. The company’s third quarter organic sales rose 9.9% to SEK 232.2 million ($26.1 million at SEK 8.90 = $1). (See IBO 11/15/18.) On a reported basis, systems and aftermarket product sales accounted for 51% and 49% of revenues respectively, including an increase in system sales in China and a high demand for peptide synthesizers in Australia. As a result, Biotage did not achieve its desired sales split target of 40% system sales and 60% aftermarket sales.

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Analytical Chemistry sales increased 47% to SEK 90.7 million ($10.2 million). Organic Chemistry sales rose 19.8% to SEK 125.0 million ($14.0 million), thanks to the combined sales of the Isolera purification system and Biotage SNAP consumables for flash purification.  Industrial product sales increased 41.6% to SEK 16.3 million ($1.83 million).

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Geographically, Asia experienced the largest percentage sales increase thanks to consistent sales of organic chemistry products and growing demand for analytical chemistry products.

Mass Cytometry Sales Lead Fluidigm Quarterly Revenue

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In the third quarter, organic sales for Fluidigm increased 17% to $29.0 million due to an increase in both product and service revenues, partially offset by a decrease in license revenue. (See IBO 11/15/18.) Foreign currency had minimal impact on revenue growth and was not reported by Fluidigm. Mass cytometry revenue increased 50% to $17.9 million. The company attributed to the robust instrument placements in translational research and cancer centers, especially the strong sales of Helios instruments. Another revenue highlight included the solid sales of Hyperion Imaging Systems, especially in the US.

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In contrast, genomics revenue decreased 13% to $11.1 million. Specifically, genomics products sales fell 12% to $9.0 million. The decrease in genomic product sales was due to lower sales of high-throughput genomics instruments, single-cell genomic product sales and consumables. Regarding genomics consumables, sales decreased because of a small customer base and inventory management.

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By region, highlights include China which increased 12% to $3.4 million, accounting for 52% of the Asia-Pacific regional sales and 12% of global sales. China’s regional sales mostly stemmed from multiple system placements for industrial, medical and pharmaceutical end-markets. Fluidigm projected its fourth quarter revenue guidance to be $29–$32 million.

Biotechnology Sales for Hitachi High-Technologies Science & Medical Systems

Second quarter fiscal 2019 revenues increased despite a decrease in sales for biotechnology and medical products. (See IBO 11/15/18.) The company reported steady demand for clinical chemistry and immunodiagnostic analyzers in Asia, primarily in China. In addition, there was growing demand for electron microscopes from electronic device and materials manufacturers in Asia. Other segment highlights included demand related to rechargeable batteries and RoHS compliance.

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The company forecasts third quarter fiscal 2019 division sales to increase 12% to ¥2,110 billion ($18.5 billion = ¥114.04 = $1).

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Asia and the Americas drive HORIBA’s Process & Environmental Sales

HORIBA’s combined revenues for its Scientific & Systems (SI), and Process & Environmental Instruments and Systems (P&E) businesses rose 10.2% in the third quarter to ¥11,258 million ($94.6 million at ¥119.00 = $1) to make up 4% of total company sales. (See IBO 11/15/18.)

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P&E sales were driven by the Americas and Asia. In the case of Asia, the increase in sales was thanks to high demand for water quality and air pollution analyzers, while in the Americas, process measurement equipment drove regional sales. P&E orders grew a modest 1.7% to ¥4,856 million ($40.8 million). Operating income increased by 180.3% to ¥1,182 million ($9.9 million) due to increased sales in Asia. P&E fourth quarter revenue was forecast to rise 29.4% to ¥5,500 million ($46.2 million).

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SI sales were driven by the Americas and Japan. As was the case last quarter, the increase in sales was attributed to high R&D spending. Despite being the most profitable region for SI sales, the Americas experienced an operating loss of ¥414 million ($3.5 million) due to HORIBA’s continuing investment to establish a presence in the region. SI orders rose 28.5% to ¥7,635 million ($64.2 million). SI fourth quarter revenue was forecast to rise 28.5% to ¥7,635 million ($64.2 million).

NanoString’s Overall Revenue Rises Due to Solid Biopharma Customer Base

In the third quarter, NanoString Technologies’ total revenues increased high single digits due to its product and service revenue, which rose 26.8% to $21.5 million. (See IBO 11/15/18.)

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Instrument sales were strong because of consistent demand from the biopharma end-market, which accounted for half of the company’s total instrument revenue. Oncology clinics continued to be NanoString’s largest customer base, accounting for 60% of new instrument sales. Immunology panel sales grew more than 50% which resulted in the product line making up one-third of new instrument sales and accounting for one-quarter of all panel sales. Other highlights included the nCounter systems’ installed base growing 22% to 695, and nCounter Sprint system sales making up 45% of total instrument sales.

Total consumable sales rose 27.8% to $13.7 million due to a 35% rise in sales of panels and a 50% sales increase in Prosigna IVD kits revenue. PanCancer panels were the most profitable consumables products as sales rose 25%.

Revenue from collaborations mostly stemmed from NanoString Technologies’ partnership with Lam Research (See IBO 08/15/17).

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Geographically, within the Americas, US revenue increased 3.6% to $20.4 million. The Americas, Europe and Middle East, and Asia Pacific accounted for 68%, 21%, 10% of instrument revenue, respectively.

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Fourth quarter product and service revenue are forecast to increase 5%–9% to $22–$23 million, while total company revenue is expected to be about $28–$29 million. Fourth quarter instrument revenue is expected to remain consistent with the last couple of quarters sequentially. Collaboration revenue is expected to be around $6 million thanks to updated plans for R&D spending of Hyb & Seq technology.

Due to third quarter product and service revenue guidance exceeding by $1 million, NanoString raised its full-year revenue guidance to $82–$83 million, a 14%–15% increase. NanoString’s total company revenue is forecast to be consistent with the previous guidance of $104–$106 million.

Broad-Based Order Increase for Oxford Instruments

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In constant currency, Oxford Instruments’ half-year fiscal 2019 sales ending September 30 rose 12.6%. (See IBO 11/15/18.) Orders rose 10.3% to £162.9 million ($213.7 million at £0.76 = $1) or 12.0% in constant currency.

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Materials & Characterization (Asylum Research, NanoAnalysis, Plasma Technology) revenue was up 21.2% in constant currency. Orders increased 13.7% to £69.5 million ($91.1 million). Semiconductor & Communications accounted for 39% of segment revenue, with the Advanced Materials, Environment, Energy and Healthcare & Life Science and Quantum Technologies markets representing 39%, 8%, 7%, 6% and 1%, respectively. Product sales strength included imaging and analysis products, semiconductor processing systems and AFMs. In addition, the recently launched Symmetry, a material structure analyzer, and Ultim, a large area X-ray detector, also sold well.

Research & Discovery (Andor Technology, NanoScience & Magnet Resonance, X-Ray Technology, minority share in ScientaOmicron) revenue was up 14.6% in constant currency. Orders increased 3.8% to £60.0 million ($78.7 million). The Healthcare & Life Science, Quantum Technologies, Research & Fundamental and Advanced Materials markets respectively accounted for 40%, 25%, 18% and 10% of sales. Oxford Instruments did not report the remaining segmented revenues for Environment, Semiconductor & Communications and Energy. The company highlighted that the segments accounted for the remaining 7% of Research & Discovery’s total revenue. Growth was offset by soft sales growth for x-ray tube and benchtop magnetic resonance systems revenues. Areas of revenue strength included optical microscopy systems, scientific cameras, cryogenic systems and superconducting research magnets.

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Service & Healthcare revenue was down 2.9% in constant currency. Orders grew 14.8% to £33.4 million ($43.8 million). Sales growth was led by demand for services. Revenue declined due to low sales of the OI Healthcare business’ refurbished systems.