Financial Data and Key Metrics Changes - Total first quarter revenue increased by 28% to $7.2 million, marking the tenth consecutive quarter of meeting or exceeding guidance [8][14] - Service revenue saw a significant increase of 64% year over year, reaching a quarterly record of $3.1 million [8][15] - First quarter gross margins improved to 6%, a 33 percentage point increase compared to the prior year quarter [9][18] - Net loss for the first quarter was $11.3 million, an improvement from a net loss of $13.3 million in the same quarter last year [19] Business Line Data and Key Metrics Changes - Product revenue, which includes systems and consumables, increased by 10% to $4.1 million compared to $3.7 million in Q1 2024 [14][15] - Service revenue growth was driven by higher validation activity and increased service contract revenue due to more validated GrowthDirect systems [15][17] - Recurring revenue, consisting of consumables and service contracts, increased by 6% to $4 million [16] Market Data and Key Metrics Changes - Global pharmaceutical and biotech companies are planning investments exceeding $150 billion to expand manufacturing capacities, which is expected to benefit the company [11] - The company is well-positioned to take advantage of the trend towards new construction incorporating the latest technologies [11] Company Strategy and Development Direction - The collaboration with MilliporeSigma includes global co-exclusive rights to sell the GrowthDirect system and aims to improve gross margins and product costs [12][54] - The company is focused on accelerating GrowthDirect system placements and developing innovative products [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business environment is incrementally more uncertain, key projects are being prioritized, which includes the GrowthDirect system [29] - The company expects to reaffirm its full-year 2025 total revenue guidance of at least $32 million, with system placements between 21 and 25 [21][24] Other Important Information - The company ended the first quarter with approximately $42 million in cash [19] - Operating expenses decreased by 5% to $12.1 million, largely due to operational efficiency programs [18] Q&A Session Summary Question: How is the business environment affecting prospects? - Management indicated that key projects are being prioritized, and the GrowthDirect system is part of that, providing confidence despite increased uncertainty [29] Question: What is the outlook for gross margins given tariff pressures? - Management expects the exit rate for gross margins to be higher than previously guided, with no significant impact from tariffs anticipated [38] Question: How many validations are expected this year compared to last year? - The company expects to complete at least 18 validations this year, slightly up from 16 last year, with potential for upside [42] Question: What is the significance of the recent CapEx in the U.S.? - Management noted that ongoing expansions by customers signify a focus on new projects, which typically adopt newer technology, benefiting the company [46] Question: How is AI integrated into the long-term strategy? - AI advancements are part of the R&D roadmap, with a focus on managing digital data generated by the GrowthDirect system [49] Question: How does the MilliporeSigma deal impact tariff exposure? - Management stated that while there is incremental uncertainty due to tariffs, there is no direct impact expected from the MilliporeSigma collaboration [51]