Key Highlights

  • Third quarter Revenue was USD 53.23 million against a USD 53.05 million estimate and USD 52.29 million last year.
  • EPS was negative USD 0.01 against an estimate of negative USD 0.07; GAAP net loss per share was USD 0.05.
  • Gross profit was USD 31.2 million at a 59% gross margin, against 53% a year earlier.
  • Cash, restricted cash and marketable securities were USD 256.3 million at September 30, against USD 261.5 million at year end.

Cytek Biosciences (NASDAQ:CTKB) closed its third quarter with revenue of USD 53.23 million against an estimate of USD 53.05 million. EPS was negative USD 0.01 against an estimate of negative USD 0.07, while the GAAP net loss was USD 6.1 million, or USD 0.05 per share.

Revenue

Total revenue was USD 53.23 million, up 2% from USD 52.29 million. Product revenue was USD 37.16 million against USD 38.11 million, a decrease of 3%, while service revenue was USD 16.07 million against USD 14.18 million, an increase of 13% that the company tied to a growing installed base and more service contracts.

Direct sales were USD 42.30 million against USD 37.67 million, and distributor sales were USD 10.93 million against USD 14.62 million. Academia and government revenue was USD 24.51 million against USD 17.79 million. Management noted that NIH grant policy changes have affected academic and government revenue and may continue to, and that some U.S. biotech customers face a difficult fundraising environment that lengthens sales cycles.

Profit and Margins

Gross profit was USD 31.21 million against USD 27.55 million, a gross Margin of 59% against 53%. Product gross margin was 61% against 53%, which the company attributed to lower overhead, material and Tariff costs, and service gross margin was 53% against 51%.

Operating expenses were USD 39.63 million against USD 36.74 million, with general and administrative at USD 18.36 million against USD 16.12 million. The loss from operations was USD 8.42 million against USD 9.19 million. After a tax benefit of USD 0.81 million, net loss was USD 6.10 million against USD 5.48 million, or USD 0.05 per share against USD 0.04.

For the nine months, revenue was USD 145.50 million against USD 139.35 million and net loss was USD 37.12 million against USD 22.46 million. Nine-month gross margin was 56%, which includes a one-time USD 2.8 million tariff refund recorded in the second quarter; the company said excluding the refund the margin would have been 54%.

Cash, Balance Sheet and Outlook Factors

Cash, cash equivalents, restricted cash and marketable securities totaled approximately USD 256.3 million. Net cash used in Operating Activities for the nine months was USD 5.82 million against USD 3.92 million, and investing activities used USD 21.86 million, mainly purchases of marketable securities of USD 210.5 million offset by maturities of USD 194.6 million. Financing provided USD 2.61 million, including a line of Credit draw of USD 6.2 million and Loan repayments of USD 4.8 million.

Management said existing cash and projected operating cash flows are sufficient for Working Capital and Capital Expenditure needs for at least the next 12 months, with additional capital expenditures planned mainly for Manufacturing equipment and research and development. Remaining performance obligations were USD 49.03 million, of which USD 30.28 million falls within one year.

Data Points to Watch

Revenue of USD 53.23 million sits alongside a 59% gross margin, a GAAP net loss per share of USD 0.05 and USD 256.3 million of cash and securities.

Management named its priorities as expanding the installed base to drive reagent and service pull-through, new product development, and entry into new markets, including clinical use of the Northern Lights-CLC system, which is registered in the European Union and China. It also cited tariffs, export controls on certain instruments and NIH policy as trends it monitors.