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 [14] - Service revenue growth was driven by higher validation activity and an increase in 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 positions the company favorably to benefit from this trend [11] - The company is experiencing robust demand for the GrowthDirect system, with multiple customers recognizing its value proposition [10] 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] - The company is focused on expanding its sales funnel and improving manufacturing efficiencies to drive margin improvement [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 does not expect a material impact from tariffs on its 2025 results, thanks to proactive supply chain strategies [20][32] Other Important Information - The company expects to burn approximately $30 million in cash for the full year 2025, which is a reduction compared to the previous year [25] - The company reaffirmed its full year 2025 total revenue guidance of at least $32 million [21] Q&A Session Summary Question: How is the business environment and customer interest in GrowthDirect? - Management indicated that key projects are being prioritized, and there is confidence in the demand for GrowthDirect despite a more uncertain environment [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 validations last year [42] Question: What is the nature of the recent capital expenditures in the U.S.? - Management noted that the capital expenditures may signify a focused effort in the U.S., which the company plans to benefit from [46] Question: How is AI integrated into the company's long-term strategy? - The company is actively working on software advancements that include AI as part of its R&D roadmap [49]

Financial Data and Key Metrics Changes - Total first quarter revenue increased by 28% to $7,200,000, marking the tenth consecutive quarter of meeting or exceeding guidance [6][12] - Service revenue saw a significant increase of 64% year over year, reaching a quarterly record of $3,100,000 [6][13] - First quarter gross margins improved to 6%, a 33 percentage point increase compared to the prior year quarter [7][15] - Net loss for the first quarter was $11,300,000, compared to a net loss of $13,300,000 in the same quarter last year [17] Business Line Data and Key Metrics Changes - Product revenue, which includes systems and consumables, increased by 10% to $4,100,000 [12] - Service revenue growth was driven by higher validation activity and an increase in service contract revenue [13] - Recurring revenue, consisting of consumables and service contracts, increased by 6% to $4,000,000 [13] 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 [9] - The company is well positioned to take advantage of the trend of new construction incorporating the latest technologies [9] 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 [10][11] - The company is focused on expanding its customer base and enhancing its product offerings through strategic partnerships [10] 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 by customers, which gives confidence in future orders [26] - The company expects to reaffirm its full year 2025 total revenue guidance of at least $32,000,000 [19] Other Important Information - The company ended the first quarter with approximately $42,000,000 in cash [17] - Operating expenses decreased by 5% to $12,100,000, largely due to operational efficiency programs [16] Q&A Session Summary Question: How is the business environment affecting prospects? - Management indicated that key projects are being prioritized, and there is confidence in the demand for GrowthDirect despite some uncertainty in the market [26] Question: What is the outlook for gross margins given tariff pressures? - Management expects the exit rate for margins to be higher than previously guided, with no significant impact from tariffs anticipated [34] 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 [38] Question: What is the significance of the recent CapEx in the U.S.? - Management noted that ongoing expansions by customers in the U.S. are seen as positive, as new projects typically adopt newer technology [40] Question: How is AI integrated into the company's long-term strategy? - The company is focusing on software advancements, including AI, as part of its R&D roadmap to enhance data management capabilities [43]