Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $591,000, significantly below expectations, primarily due to a near halt in capital sales of new instruments [7][24] - Gross profit was $351,000, resulting in a gross margin of 59% for the quarter [24] - For the six months ended June 30, 2025, total revenue was $1,400,000, with a gross profit of $837,000 and a gross margin of 58% [25] Business Line Data and Key Metrics Changes - Capital sales of new instruments were the main driver for the revenue decline, while consumable purchases slightly exceeded expectations [7][8] - The installed base of customers is approximately 65% outside the U.S. and 35% within the U.S., encompassing various customer types including academic, industrial, and government research labs [35] Market Data and Key Metrics Changes - The U.S. academic labs experienced a significant slowdown in capital purchases due to NIH funding uncertainties [7][29] - Despite capital market headwinds, consumable purchasing remained consistent across market segments, with government and pharma/biotech accounts showing stable demand [68] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [6][21] - New instrument acquisition options have been launched to address capital sales headwinds, allowing customers to purchase consumables without upfront capital investment [10][11] - The company remains confident in the long-term market opportunity in proteomics and is focused on growing its installed customer base [11][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of NIH funding uncertainties on capital sales and expressed optimism about the potential for growth through new acquisition models [29][30] - The company anticipates that the new models will help capture consumable revenue and improve overall financial performance in the long term [29][70] Other Important Information - The company reported total operating expenses of $30,500,000 for Q2 2025, an increase from $26,800,000 in Q2 2024, while adjusted operating expenses were $23,800,000, slightly down from $24,400,000 [26] - The company ended the quarter with $214,200,000 in cash, cash equivalents, and investments in marketable securities, providing a strong financial position [27][32] Q&A Session Summary Question: How much of the $591,000 revenue is overseas and in pharma/biotech? - The company does not break out revenue by specific segments but noted that 65% of its installed base is outside the U.S. and 35% is within [35] Question: Is $500,000 to $600,000 the bottom for revenue? - Management expressed optimism that this is the bottom and expects gradual improvement, though not instant [36][38] Question: What does a typical placement look like under the new model? - The company offers several models, including capital purchases, reagent rentals, and short-term placements based on consumable revenue potential [40] Question: Are there any trends in leads with the new acquisition opportunities? - Initial data suggests that customers who were previously interested but constrained by capital are now engaging with the new options [46][49] Question: Will Proteus be offered through new models? - Currently, there are no plans to offer Proteus through alternative models; the focus remains on capital sales [61] Question: How is consumable purchasing trending? - Consumable revenue was slightly ahead of expectations, with consistent purchasing across market segments despite capital sales challenges [68] Question: Are the new kits suitable for specific end markets? - The new kits are designed to meet the needs of pharma/biotech customers and are expected to enhance penetration in that segment [72] Question: Is the company considering partnerships or acquisitions given its cash position? - While the company is open to exploring opportunities, the primary focus remains on executing its core technology and business [80][81] Question: If revenue remains soft, where would cuts be made? - The company does not anticipate cuts in the commercial team but will remain targeted in its approach to R&D and operational expenses [85][90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $842,000, representing an 84% increase compared to Q1 2024, although it was slightly below expectations [7][18] - Gross profit was $486,000 with a gross margin of 58%, influenced by low or no-cost inventory utilized during the quarter [18][19] - Total operating expenses for Q1 2025 were $25.6 million, up from $23.6 million in Q1 2024, while adjusted operating expenses were $22.9 million compared to $21.9 million in the previous year [19][20] Business Line Data and Key Metrics Changes - The launch of the Platinum Pro system occurred during the first quarter, with initial customer sales reported [6][7] - Existing US academic customers continued to purchase consumables, despite a slowdown in new instrument purchases due to NIH funding uncertainties [8][19] Market Data and Key Metrics Changes - The US academic market is experiencing a slowdown in new instrument purchases, expected to persist until at least fall 2025 [7][8] - The company has 23 international distribution partners, and international business performed well during the first quarter [9][20] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [6][10] - Emphasis is being placed on the pharma and biotech sectors in the US market due to ongoing NIH funding uncertainties [8][10] - The technology roadmap includes the launch of Version four sequencing kits in Q3 2025 and improvements in library preparation kits by the end of 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity in proteomics despite current market uncertainties [17][23] - The company is monitoring potential impacts from evolving tariffs and has strategies in place to mitigate long-term effects [20][21] Other Important Information - The company has $232.6 million in cash and cash equivalents as of March 31, 2025, providing a runway into the second half of 2027 [20][23] - The company is focused on maintaining its technology leadership and is committed to investing wisely in R&D and commercialization efforts [45][46] Q&A Session Summary Question: Concerns about biopharma spending and tariffs - Management noted that current funding levels in biotech and pharma are stable and not significantly impacted by policy discussions [28][29] Question: Feedback on the Platinum Pro system - The system is considered locked down, with positive feedback from early adopters regarding reliability and performance [31][32] Question: Future gross margin expectations - Historical margins are expected to remain in the 40% to 50% range, with variability based on product mix and sales [37][38] Question: Cash runway and potential need for additional capital - The company has sufficient cash to sustain operations through the second half of 2027, with a focus on targeted investments [41][46] Question: International distribution partners and tariff impacts - No significant tariff impacts have been observed, and the distribution network has expanded to 23 partners covering multiple countries [49][50] Question: Sequencing kit improvements and market competition - The next version of the sequencing kit will provide meaningful performance improvements, with a focus on maintaining a competitive edge [72][76]