QuantumSi(US:QSI)2025-11-05 22:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $552,000, impacted by capital sales headwinds in the market [4][16] - Gross profit was $194,000, with a gross margin of 35% [16] - For the nine months ended September 30, 2025, revenue was $2.0 million, and gross profit was $1.0 million, with a gross margin of 52% [16][18] - Total operating expenses for Q3 2025 were $40 million, compared to $28.5 million in Q3 2024 [18] - Adjusted operating expenses for Q3 2025 were $21.4 million, down from $26.0 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The company launched an expanded set of instrument acquisition options, resulting in 12 new customers implementing the platform [5] - More than half of the new customers are in academic labs, a segment previously difficult to access due to NIH funding challenges [5] Market Data and Key Metrics Changes - The company experienced year-over-year revenue impacts due to capital market headwinds and NIH funding uncertainties [17] - The placements program has allowed access to key academic centers, with over half of placements going into academic labs [34] Company Strategy and Development Direction - The company aims to accelerate commercial adoption, deliver on its innovation roadmap, and preserve financial strength [4] - The Proteus platform is a key focus, with successful sequencing runs completed on prototype systems [9] - The company is exploring partnership opportunities to enhance development activities and expand market participation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early traction with the placement program despite ongoing capital market challenges [13] - The company anticipates modest improvement in Q4 2025, but not a significant upswing compared to historical trends [40] - There is uncertainty regarding NIH funding due to the government shutdown, but proposals indicate a potential retention of funding levels [41][42] Other Important Information - The company has a strong balance sheet with $230.5 million in cash and investments as of September 30, 2025 [20] - A Form S-3 shelf registration statement for $300 million was filed to support business initiatives [22] - Management and board collectively hold approximately 18% of the total outstanding stock, indicating strong investment in the company's success [24] Q&A Session Summary Question: Updates on the investor day and Proteus sequencer development - The investor day on November 19 will provide updates on Proteus, including early sequencing data and key milestones for 2026 [28][29] Question: Involvement in DARPA's PRESS program - The company is aware of the PRESS program but does not align perfectly with its microsystem strategy [31] Question: Breakdown of placements by market segment - More than half of the placements went into academic labs, with the remainder split between pharma, biotech, and agricultural testing [34] Question: Seasonal trends from Q3 to Q4 - A modest improvement is expected in Q4 2025, but not as significant as in typical years due to various challenges [40] Question: Key hurdles to market launch of Proteus - Key hurdles include scaling from prototypes to fully integrated systems and optimizing the platform for manufacturing [44][46]