908 Devices(US:MASS)2025-11-10 14:30Financial Data and Key Metrics Changes - Revenue from continuing operations was $14 million, down 4% year over year but up 8% sequentially, driven by strong demand for FTIR devices [4][18] - Year-to-date revenues from continuing operations totaled $38.8 million, representing a 16% increase year over year [5] - Adjusted EBITDA loss was $1.8 million for Q3, an improvement of over $5 million year over year [5][22] - The company ended the quarter with approximately $112 million in cash and marketable securities, with no debt outstanding [23] Business Line Data and Key Metrics Changes - FTIR devices accounted for 42% of revenue, with the Explorer Gas Identification device showing strong demand [4] - Recurring revenue represented 36% of total revenue, with a 10% increase year over year [5][19] - Handheld product and service revenue was $13.2 million, down 5% from the prior year [18] Market Data and Key Metrics Changes - The U.S. Coast Guard purchased 23 MX908 devices for narcotics interdiction, contributing to the installed base growth of 27% year over year [4] - International engagement and order flow remain solid, although U.S. export licensing requirements may extend delivery times [7] Company Strategy and Development Direction - The company aims to increase adoption of its devices to address global threats to public health and safety, focusing on rapid chemical identification tools [8][9] - The strategy includes expanding the handheld portfolio and increasing the share of recurring revenue to reduce dependency on large enterprise deals [26] - The company is also advancing its next-gen analytical tools portfolio, including the launch of VIPER, a handheld chemical analyzer [12][15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about achieving full-year guidance despite potential impacts from the U.S. government shutdown [8][24] - The company expects revenue from continuing operations to be in the range of $54-$56 million for the full year, representing growth of 13%-17% over 2024 [23][24] - Management highlighted the importance of government resuming normal operations for achieving Q4 revenue expectations [30] Other Important Information - The company is on track to achieve positive adjusted EBITDA by Q4 2025, supported by revenue projections and lower operating costs [26] - The gross margin increased to 58% on an adjusted basis, reflecting improvements from operational changes [16][21] Q&A Session Summary Question: Clarification on the $4 million impact on guidance - Management confirmed that the $4 million potential impact is included in the full-year guidance and is considered a timing issue [29][30] Question: Update on AVCAD program and Coast Guard order - The Coast Guard order was included in Q3 shipments, and clarity on the AVCAD program's next steps is expected by year-end [31][32] Question: Sensitivities around adjusted EBITDA break-even - Management indicated that achieving adjusted EBITDA positivity is contingent on landing anticipated orders and maintaining revenue guidance [34][36] Question: Production capabilities and supply chain risks - Management expressed confidence in production capabilities and does not foresee significant supply chain issues affecting AVCAD fulfillment [45][46] Question: Impact of government shutdown on future revenues - Management views the shutdown as a timing issue and remains optimistic about the pipeline and future revenue recognition [47][50]