Group 1 - The first railway transport of "Chengdu-made" power lithium batteries marks a new logistics model, with the first trial train carrying batteries from Zhongxin Innovation Technology (Chengdu) Co., Ltd. to Shanghai, indicating a shift from road to rail transport, which is expected to reduce logistics costs by 20% to 30% [2] - Atlas Data Storage has launched the "Atlas Eon 100," the world's first scalable DNA data storage solution, claiming it can store data for thousands of years without needing refreshment, and remains stable in high-temperature environments [2] - The deployment of a hydrological radar system at the Three Gorges Project enhances safety and flood prevention efforts, addressing limitations of traditional rain measurement methods that are affected by environmental factors and have low resolution [2]

Core Insights - DNA is considered a strong competitor for next-generation storage media due to its vast storage potential, but high error rates in synthesis technology hinder its practical application [1] - A research team from Tianjin University has developed a DNA storage framework called StairLoop, which aims to enhance data recovery performance in high-error-rate synthesis environments [2] Group 1: DNA Storage Potential - DNA is viewed as a highly promising storage medium due to its environmental friendliness, high stability, and large storage density, especially as data storage demands enter the "zettabyte era" [1] - The actual application of DNA data storage faces technical bottlenecks during synthesis, particularly with high scalability and low-cost methods like electrochemical synthesis, which often result in high nucleotide error rates and synthesis non-uniformity [1] Group 2: StairLoop Framework - The StairLoop framework employs a stair-step interleaved structure and iterative soft-decision decoding mechanism to effectively correct typical synthesis errors such as insertions, deletions, and substitutions without relying on complex multi-sequence alignment [2] - The framework also features parallel decoding capabilities, which enhance the efficiency of large-scale data retrieval [2] Group 3: Experimental Validation - The research team successfully encoded images of oracle bone inscriptions, representing early human civilization, into DNA using electrochemical DNA synthesis methods [2] - Despite some synthesis blocks having nucleotide error rates exceeding 6% and sequence loss rates over 30%, the StairLoop framework was able to accurately decode and fully restore the original images, demonstrating its effectiveness in high-error-rate environments [2] - This achievement provides technical support for the practical application of high-throughput technologies like electrochemical synthesis and is significant for the transition of DNA storage technology from laboratory to industrial application [2]

Financial Data and Key Metrics Changes - For the second quarter of fiscal 2025, the company reported record revenue of $92.8 million, an increase of 23% year over year and 4.6% sequentially [13][24] - Gross margin for the quarter was 49.6%, up from 41% in the same quarter of fiscal 2024, reflecting improved operational efficiency [13][29] - Adjusted EBITDA loss was approximately $14.8 million, an improvement of about $11.9 million compared to the second quarter of fiscal 2024 [30] Business Line Data and Key Metrics Changes - Revenue from Synbio increased to $36 million, a growth of 21% year over year [13][24] - NGS revenue grew to approximately $51.1 million, an increase of 25% year over year [16][25] - Biopharma services revenue was $5.7 million, reflecting a growth of 21% year over year [16][25] Market Data and Key Metrics Changes - Healthcare revenue rose to $52.8 million, up 29% year over year [26] - Industrial chemical revenue increased to $22.8 million, a 12% rise from the previous year [26] - Academic revenue was $16.5 million, up 20% year over year [27] Company Strategy and Development Direction - The company has spun out DNA Data Storage as an independent entity, Atlas Data Storage, to focus on commercialization and drive success [9][11] - The strategy emphasizes operational agility and customer engagement to maintain competitive positioning [18][19] - The company aims to achieve adjusted EBITDA breakeven by the end of fiscal 2026, with a focus on innovation and market share growth [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order bookings exceeding $100 million in the last two quarters [38] - The company is prepared to navigate market volatility and leverage it as an opportunity for growth [36][38] - Management acknowledged challenges in the academic sector but remains confident in the value proposition of their products [72][74] Other Important Information - The company ended the quarter with cash, cash equivalents, and short-term investments of approximately $257.1 million [31] - The company expects gross margin improvements to exceed 50% in the latter half of the fiscal year [34] Q&A Session Summary Question: Impact of tariffs on guidance and demand from competitors - Management indicated that they have accounted for potential tariff impacts in their guidance and noted strong share gains despite macro challenges [40][42] Question: Effect of promotions on academic market growth - Management confirmed that the 20% growth in the academic market was partly due to promotional activities, which they plan to continue until the end of the fiscal year [47][50] Question: Guidance for NGS revenue from top customers - Management expects growth from both existing and new customers, with top customers growing at a rate similar to the overall NGS business [53][54] Question: Reinvestment of savings from the spin-off into R&D - Management confirmed that savings from the spin-off will be partially reinvested into higher priority R&D initiatives [56][61] Question: Academic market's importance and growth assumptions - Management highlighted a significant opportunity in the academic market, with expectations for continued growth despite budget constraints [83][84]