Financial Data and Key Metrics Changes - Total third quarter revenue was $7.8 million, a 3% increase compared to $7.6 million in Q3 2024, marking the 12th consecutive quarter of meeting or beating revenue guidance [6][14] - Consumables revenue increased by 40% year-over-year, reaching a quarterly record, while service revenue grew by 12% compared to Q3 2024 [6][14] - Gross margins improved to 9%, reflecting a 70 basis point increase from the prior year, with service margins at 40% [7][15] - Net loss for Q3 was $11.5 million, consistent with the net loss of $11.3 million in Q3 2024, with net loss per share remaining at $0.26 [16] Business Line Data and Key Metrics Changes - Product revenue was flat at $5.2 million, with consumables offsetting the impact of fewer system placements [14] - Recurring revenue, which includes consumables and service contracts, increased by 32% to $4.8 million [14] - Non-recurring revenue, mainly from systems and validation, was $3 million [14] Market Data and Key Metrics Changes - The company secured a record multi-system order from a top 20 global biopharma customer, with contributions expected to begin in Q4 and extend into 2026 [7][8] - The customer is deploying GrowthRx systems across multiple sites in North America, Europe, and Asia-Pacific, indicating broad-based demand [8][24] Company Strategy and Development Direction - The company is raising its full-year 2025 revenue guidance to at least $33 million, driven by the recent multi-system order and a strong sales pipeline [11][17] - The collaboration with MilliporeSigma is expected to enhance sales and drive margin improvement, with initial benefits anticipated in the second half of 2026 [10][11] - The company aims to capitalize on industry trends towards automation and increased investments in U.S. pharmaceutical manufacturing [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is no demonstrable change in demand, the company continues to benefit from high ROI projects in the pharmaceutical sector [37] - The company expects to see meaningful gross margin improvement in 2026, driven by product cost reductions and manufacturing efficiency initiatives [19][20] Other Important Information - The company ended the quarter with approximately $42 million in cash and investments [16] - Operating expenses decreased by 5% year-over-year to $12.1 million, attributed to operational efficiency programs [16] Q&A Session Summary Question: Clarification on revenue guidance increase - Management explained that the increase in guidance is due to the large multi-system order not previously included in forecasts, with some offsetting factors in Q4 [22][23] Question: Geographical demand distribution - Management indicated that demand is consistent across North America, Europe, and Asia, with broad-based customer interest in global deployments [24] Question: Details on the multi-system order - Management did not disclose the total order size but confirmed it is a double-digit order [30] Question: Cost efficiency journey with MilliporeSigma - Management stated that benefits from the collaboration with MilliporeSigma are expected to materialize in the second half of 2026 [32] Question: Momentum against current market backdrop - Management noted steady demand and high ROI projects continue to be prioritized, with expectations for gradual improvement in 2026 [37][39] Question: Timeline for consumable ramp-up from new systems - Management expects installations and validations to occur in Q4 and the first half of next year, with consumable revenue ramping up in the second half of 2026 [46][48] Question: Progress in adjacent markets like personal care - Management confirmed that while the focus remains on pharmaceuticals, efforts to penetrate adjacent markets are ongoing through the collaboration with MilliporeSigma [50]

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]