CYTEK(US:CTKB)2025-05-08 21:21Financial Performance - Total revenue for Q1 2025 was $41.5 million, an 8% decrease from $44.9 million in Q1 2024[165]. - The net loss for Q1 2025 was $11.4 million, compared to a net loss of $6.2 million in Q1 2024, primarily due to decreased revenues and increased operating expenses[169]. - Total revenue decreased by $3.4 million to $41.5 million, or 8%, for the three months ended March 31, 2025, compared to the same period in 2024[204]. - Product revenue decreased by $6.0 million to $28.1 million, or 18%, primarily due to lower revenue in EMEA and the United States, partially offset by growth in the APAC market, particularly in China[205]. - Service revenue increased by $2.6 million to $13.3 million, or 24%, driven by growth in the installed base and related service contracts[206]. - Gross profit margin declined to 49% for the three months ended March 31, 2025, down from 51% in the same period in 2024[208]. Expenses - Research and development expenses were $9.7 million in Q1 2025, slightly down from $9.8 million in Q1 2024[167]. - General and administrative expenses increased by $1.5 million to $12.9 million, or 13%, primarily due to higher outside service expenses and increased headcount[214]. - Interest expense decreased by 34% to $0.3 million for the three months ended March 31, 2025, compared to $0.4 million in 2024[216]. - Interest income decreased by 63% to $0.5 million for the three months ended March 31, 2025, due to lower average balances of cash and cash equivalents[217]. - The company plans to continue investing in research and development, which may lead to increased expenses in future periods[194]. Cash Flow and Investments - As of March 31, 2025, the company had approximately $265.6 million in cash and cash equivalents and short-term investments, down from $277.9 million as of December 31, 2024[221]. - Net cash used in operating activities for the three months ended March 31, 2025 was $0.1 million, including a net loss of $11.4 million[229]. - Net cash provided by investing activities was $9.5 million for the three months ended March 31, 2025, driven by proceeds from maturities of marketable securities[231]. - Net cash used in financing activities was $11.5 million for the three months ended March 31, 2025, primarily due to share repurchases and loan repayments[233]. Market and Strategic Developments - The company completed the acquisition of Luminex's flow cytometry and imaging business on February 28, 2023, enhancing its product offerings and market reach[164]. - The Northern Lights-CLC system received CE Marking in September 2020 and was registered in the EU in November 2023, allowing for clinical use in multiple regions[177]. - The installed base of instruments is expected to drive recurring revenue growth, which is anticipated to become a significant contributor to total revenue[172]. - The company plans to continue investing in commercial infrastructure and expanding its workforce to support growth in instrument sales and reagent offerings[168]. - The revenue mix is expected to shift towards increased service revenue as the installed base expands, improving gross margins over time[174]. Risks and Challenges - Recent inflation trends and geopolitical factors may adversely affect operating costs and revenue, particularly in the context of a challenging fundraising environment for customers[180][181]. - The company has not entered into any hedging arrangements to minimize foreign currency exchange rate fluctuations, which may impact future results as international operations expand[243]. - The company does not anticipate material risk from changes in interest rates due to the short-term nature of its cash and cash equivalents[241].