Cytek Biosciences Reports Second Quarter 2021 Financial Results

Sep 2, 2021

FREMONT, Calif., Sept. 02, 2021 (GLOBE NEWSWIRE) -- Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB) today reported financial results for the second quarter ended June 30, 2021.

Recent Highlights

  • Revenue was $30.4 million for the second quarter, representing a 59% increase over the second quarter of 2020
  • Expanded the installed base to 855 instruments, with 104 instrument placements during the second quarter
  • Launched the Cytek Aurora Cell Sorter (CS), a high-dimensional benchtop cell sorter that delivers high resolution single-cell capabilities regardless of assay complexity or autofluorescence level
  • Launched the Automated Sample Loader, an integrated plate and tube loader that streamlines the sample loading process – offering ‘walk away’ capabilities and expanding high-throughput acquisition options for researchers
  • Appointed Allen Poirson, Ph.D., as the senior vice president of marketing and corporate development
  • Strengthened balance sheet by raising approximately $215 million in net proceeds from initial public offering in July 2021

“During the quarter, we demonstrated the strength of our business with solid top line growth,” said Dr. Wenbin Jiang, CEO of Cytek Biosciences. “We are especially encouraged by the growing interest in our Aurora and Northern Lights systems, which deliver high-resolution, high-content and high-sensitivity cell analysis by utilizing the full spectrum of fluorescence signatures. We look forward to getting our Full Spectrum Profiling solutions into the hands of more customers to accelerate scientific discovery and to have a profound impact on the understanding of cell biology, immunotherapy, and personalized medicine.”

Second Quarter 2021 Financial Results
Total revenue for the second quarter of 2021 was $30.4 million, a 59% increase over the second quarter of 2020. This increase was primarily driven by sales of Aurora and Northern Lights instruments.

Gross profit was $19.7 million for the second quarter of 2021, an increase of 137% compared to a gross profit of $8.3 million in the second quarter of 2020. Gross profit margin was 65% in the second quarter of 2021 as compared to 43% in the second quarter of 2020.

Operating expenses were $15.9 million for the second quarter of 2021, an 87% increase from $8.5 million in the second quarter of 2020. This increase was primarily driven by increases in the ongoing development of new and complementary products, an increase in headcount and personnel related expenses, an increase in services to support the growth of our overall operations, and additional costs associated with becoming a public company.

Net income in the second quarter of 2021 was $2.7 million, as compared to net income of $8.1 million dollars in the second quarter of 2020. Income from operations in the second quarter of 2021 was $3.8 million compared to a loss of $0.2 million in the second quarter of 2020.

Cash and cash equivalents were approximately $160 million as of June 30, 2021. Subsequent to quarter end, the Company completed its initial public offering in July 2021 resulting in $215 million of net proceeds.

About Cytek Biosciences, Inc.
Cytek Biosciences is a leading cell analysis solutions company advancing the next generation of cell analysis tools by delivering high-resolution, high-content and high-sensitivity cell analysis utilizing its patented Full Spectrum Profiling™ (FSP™) technology. Cytek’s novel approach harnesses the power of information within the entire spectrum of a fluorescent signal to achieve a higher level of multiplexing with exquisite sensitivity. Cytek’s FSP platform includes its core instruments, the Aurora and Northern Lights systems, its cell sorter, the Aurora CS, and reagents, software and services to provide a comprehensive and integrated suite of solutions for its customers. Cytek is headquartered in Fremont, California with offices and distribution channels across the globe.

Other than Cytek’s Northern Lights CLC system, which is available for clinical use in China and the European Union, Cytek’s products are for research use only – not for use in diagnostic procedures or for clinical purposes.

Cytek, Full Spectrum Profiling, FSP and Northern Lights are trademarks or registered trademarks of Cytek Biosciences, Inc.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might," "will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding Cytek Biosciences’ expectations regarding the company’s business operations, its ability to provide Full Spectrum Profiling solutions to more customers to accelerate scientific discovery and to have a profound impact on the understanding of cell biology, immunotherapy, and personalized medicine. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management. These statements also deal with future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to market conditions; the ongoing COVID-19 pandemic; Cytek Biosciences’ dependence on certain sole and single source suppliers; competition; market acceptance of Cytek Biosciences’ current and potential products; Cytek Biosciences’ ability to manage the growth and complexity of its organization; Cytek Biosciences’ ability to maintain, protect and enhance its intellectual property; and Cytek Biosciences’ ability to continue to stay in compliance with its material contractual obligations, applicable laws and regulations. You should refer to the section entitled “Risk Factors” set forth in Cytek Biosciences’ Quarterly Report on Form 10-Q and other filings Cytek Biosciences makes with the SEC from time to time for a discussion of important factors that may cause actual results to differ materially from those expressed or implied by Cytek Biosciences’ forward-looking statements. Although Cytek Biosciences believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. The forward-looking statements in this press release are based on information available to Cytek Biosciences as of the date hereof, and Cytek Biosciences disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Cytek Biosciences’ views as of any date subsequent to the date of this press release.

Media Contact:
Stephanie Olsen
Lages & Associates
(949) 453-8080
stephanie@lages.com

Investor Relations Contact:
Carrie Mendivil/Mary Kate McDonough
Gilmartin Group LLC
(518) 727-6380
investors@cytekbio.com


Cytek Biosciences, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
 
  Three months ended June 30, Six months ended June 30,
(In thousands, except share and per share data) 2021 2020 2021 2020
         
Revenue  30,408   19,136   54,680   37,124 
Cost of Sales  10,663   10,866   20,449   20,479 
Gross profit  19,745   8,270   34,231   16,645 
Operating expenses:        
Research and development  6,194   2,916   11,288   5,932 
Sales and marketing  5,576   3,059   9,853   6,590 
General and administrative  4,164   2,513   8,147   5,051 
Total operating expenses  15,934   8,488   29,288   17,573 
Income (loss) from operations  3,811   (218)   4,943   (928) 
Other income (expense):        
Interest expense  (433)   (1)   (808)   (1) 
Interest income  9   16   19   102 
Other income (expense), net  (120)   395   (735)   358 
Total other income (expense), net  (544)   410   (1,524)   459 
Income (loss) before income taxes  3,267   192   3,419   (469) 
Provision for (benefit from) income taxes  597   (7,919)   647   (7,741) 
Net income $2,670  $8,111  $2,772  $7,272 
Other comprehensive income:        
Foreign currency translation adjustment, net of tax  269   (19)   471   (96) 
Net comprehensive income $2,939  $8,092  $3,243  $7,176 
Net income attributable to common stockholders per share, basic $-  $0.07  $-  $0.04 
Net income attributable to common stockholders per share diluted $-  $0.06  $-  $0.04 
Weighted-average shares used in calculating net income per share, basic  31,878,762   28,497,247   31,719,005   28,475,868 
Weighted-average shares used in calculating net income per share, diluted  36,173,036   31,133,913   35,908,554   31,070,177 



Cytek Biosciences, Inc.
Condensed Consolidated Balance Sheets
 
  June 30, December 31,
(In thousands, except share and per share data) 2021 2020
  (unaudited) (audited)
Assets    
Current assets:    
Cash and cash equivalents $159,846  $165,231 
Trade accounts receivable, net  24,029   16,990 
Restricted cash  -   888 
Inventories  26,655   23,018 
Prepaid expenses and other current assets  6,408   2,495 
Total current assets  216,938   208,622 
Deferred income tax assets, noncurrent  7,378   7,378 
Property and equipment, net  3,895   2,140 
Goodwill  476   476 
Intangible assets, net  333   274 
Other noncurrent assets  1,259   1,089 
Total assets $230,279  $219,979 
Liabilities, redeemable convertible preferred stock and stockholders’ deficit    
Current liabilities:    
Trade accounts payable $3,324  $2,944 
Legal settlement liability, current  7,229   6,253 
Accrued expenses  11,593   9,048 
Other current liabilities  1,351   4,626 
Deferred revenue, current  4,668   3,665 
Total current liabilities  28,165   26,536 
Legal settlement liability, noncurrent  11,724   10,959 
Deferred revenue, noncurrent  6,317   3,456 
Other noncurrent liabilities  739   737 
Total liabilities $46,945  $41,688 
Redeemable convertible preferred stock, $0.001 par value; 87,268,694 shares authorized, issued and outstanding as of June 30, 2021 and December 31, 2020; aggregate liquidation preference of $199,230 as of June 30, 2021 and December 31, 2020  194,319   194,319 
Stockholders’ deficit:    
Common stock, $0.001 par value; 153,329,500 authorized shares at June 30, 2021 and December 31, 2020; 32,096,586 and 31,241,916 issued and outstanding shares at June 30, 2021 and December 31, 2020, respectively  24   23 
Additional paid-in capital  7,975   6,491 
Accumulated deficit  (19,835)   (22,607) 
Accumulated other comprehensive income  536   65 
Noncontrolling interest in consolidated subsidiary  315   - 
Total stockholders’ deficit $(10,985)  $(16,028) 
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit $230,279  $219,979 

 



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