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]

Financial Data and Key Metrics Changes - For the second quarter of fiscal 2025, the company reported record revenue of $92,800,000, an increase of 23% year over year and 4.6% sequentially [13][23] - Gross margin for the quarter was 49.6%, up from 41% in the same quarter of fiscal 2024, reflecting improved operational efficiency [13][28] - Adjusted EBITDA loss was approximately $14,800,000, an improvement of about $11,900,000 compared to the second quarter of fiscal 2024 [29][32] Business Line Data and Key Metrics Changes - Revenue from Synbio increased to $36,000,000, a growth of 21% year over year [13][24] - NGS revenue grew to approximately $51,100,000, an increase of 25% year over year [16][24] - Biopharma services revenue was $5,700,000, reflecting a growth of 21% year over year [16][24] Market Data and Key Metrics Changes - Healthcare revenue rose to $52,800,000, a 29% increase year over year [25] - Industrial chemical revenue increased to $22,800,000, up 12% from the same period last year [25] - Academic revenue was $16,500,000, a 20% increase year over year [26] Company Strategy and Development Direction - The company has spun out DNA Data Storage as an independent entity, Atlas Data Storage, to focus on end-to-end data storage solutions [8][11] - The strategy emphasizes agility and innovation to capture market opportunities while maintaining operational efficiency [18][19] - The company aims to reach adjusted EBITDA breakeven by the end of fiscal 2026, leveraging the Atlas Data Storage transaction for improved financial performance [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing over $100,000,000 in orders booked in each of the last two quarters [37] - The leadership team is focused on innovation and customer impact, adapting to market conditions while maintaining a competitive edge [36][70] - The company anticipates continued share gains in the academic market despite funding pressures [65][72] Other Important Information - The company ended the quarter with cash, cash equivalents, and short-term investments of approximately $257,100,000 [29] - The company expects total revenue guidance for fiscal 2025 to be between $372,000,000 and $379,000,000, indicating a growth of approximately 20% at the midpoint [30] Q&A Session Summary Question: What is the impact of tariffs on guidance? - Management indicated that they have accounted for potential tariff impacts in their guidance, noting that tariffs may serve as a headwind for competitors rather than themselves [41][64] Question: How are promotions affecting Synbio growth? - Promotions have contributed to a 20% growth in the academic market, with expectations for continued positive impacts on margins [46][50] Question: What is the significance of the top 10 customers in NGS revenue? - The top 10 customers are expected to grow at a rate similar to the overall NGS business, with no specific increases assumed for the second half [52][54] Question: How will savings from the spin-off be reinvested? - The company plans to reinvest savings from the spin-off into higher priority R&D initiatives, contributing to improved adjusted EBITDA [56][60] Question: What is the outlook for the academic market? - The academic market presents a significant growth opportunity, with the company underpenetrated in this segment and optimistic about future performance [82][84]