908 Devices (MASS) 7 Nov 232023 Q3 Earnings call transcript

 Hello, and welcome to today's 908 Devices Third Quarter 2023 Financial Results Conference Call. My name is Jordan, and I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Kelly Gura of Investor Relations to begin. Kelly, please go ahead.

Thank you. released XXXX. for devices ended third XXX XX, September morning, financial the results quarter This

not this distribution you've be e-mail If received ir@XXXdevices.com.. added like if to to to you'd the company's list, an news please release or

Knopp, Joining and Executive Financial Co-Founder; is Chief Officer Griffith, Chief me Joe XXX today Officer. from Kevin and

risks I'd meaning remind this material you begin, are forward-looking uncertainties of that statements call securities and statements management These will we anticipated. cause or Before the could that like to within federal laws. differ during actual make to events that statements from involve results those materially

Additional Forward-Looking and Statements risks devices uncertainties entitled press the the release XXX section information regarding in issued appears these today. in

update Risk XX-K of on Commission. by its and This For I November turn or devices annual Kevin. report new the or call only broadcast, Except revise the company's of for other events Factors Securities required statements, section obligation XX, With list a filings see more complete XXXX, time-sensitive Form the Exchange as XXXX. ended future information, and whether disclaims to because otherwise. or year of December description, as to financial call and forward-looking is any live information would accurate to contains the like and any X, intention that, XXX within the conference projections law, please the or over

headwinds market. efforts and life and our like in you their the as joining during thank morning, instrumentation third XXXX committed quarter, Kelly. Thanks, solid sciences bio-processing navigate continue and to goals our our team to We I'd for execution the we earnings quarter Good of the progressing third thank for call. delivered

we first back at in of anticipated more X the than pronounced the bio-processing Looking challenges of outset space year. were even the the XXXX, on months

growth the forensics by handheld market. been impact of offset the this However, has our significantly devices serving

to year-over-year our by strength top $XX.X which year-over-year. of in the X% line devices, Over our revenue increased X XXXX, months XX% handheld million, the first booted increased have

contribute growth to drive handheld for mid- our overall the and meaningfully to continue our expect the We to high single year. digits into

quarter, rising the X% third the crisis there again uncertainties, our point was ongoing need. Revenue increased With in in demand at year-over-year. handhelds, analysis by the has revenue $XX.X of which geopolitical counterfeit for primarily fentanyl For continued was forensic been handheld trace million. applications pharmaceuticals, driven

to MAVERICK, we for deliver devices continue September, provide full our in bio-processing. in-line of We on our to complementary launched commitment a And device. first portfolio Ramin-based desktop

the global disruptive it life great sciences of X.X. and the technology uniqueness innovation biotechnology industry. in Solutions recognizes the new Year concert.Innovation we headquarters. and process at in PAT, hosted all biotech pleased our I'm in awards, the our of technology, provide show lab introduction of devices Maven our and of for that great the where in have of on our community ultimate validation update in This to Devices person MAVERICK many core the our to with of is can of day During a the our XXX. third analytical Provider you bio-processing of the as members demos our investor Analytical which map at live you a named was week, mission an is biopharma road bio-processing how Boston launch device, the It MAVERICK did our progresses used was are XXX and share devices annual component impact we to breakthrough along our industry see

radiate first key objective, provide penetrate across progress to Now on with accounts. brief our across made update I'd for we've XXXX. Starting like a X areas and the focus our

were of a accounts these enterprise accounts committed said At across to significant drive the to new penetrate foothold start we making to on is adoption. enterprise and adoption. broader year, radiate focus to Our create then progress we the

During the front. that third on we some advancements important made quarter,

First, announced expansion the and of emergency account. Guard Air this U.S. We enterprise award services fire continued Air totalling to National and Force were an from the pleased we see recently $XX.X million.

XXX Guard and for National been device and has aero chemical of existing within deployed their the orders upgrades X/X MX along approximately module Our for Air response support with these training represent hazardous devices.

U.S. and add and chemical the aerosolized the the details and recognition guard moment. response. enabling will around active and to the of reserve Air award, will world module more MXXXX MXXXX, medical and Aero on teams revenue Our utilize for to emergency now materials provide With this more order a installations components Aeromodule XXX device identify this Joe capability its response hazards. quickly for the international than Force hazardous at operations in detect

Defense. extremely Air XXX next has the of AVCAD. way and U.S. are hazardous conjunction with medical MX agent the detectors, Force as paving of to proud project, were with that exciting chemical chosen Detection, response of We production paper known the on Aero portable In project the XXX partner and module multiyear September, otherwise news we aerosol their phase U.S. for Department on initial announced operations.In Smiths emergency and device selected our the a we our enhanced material provide standard, as

chemical support aerosols. and vapors next-generation Our traditional can and be alarm and which technology the mounted military. AVCAD, alarm wireless portable mass detect, the The high-pressure systems, missions spectrometry of will to for report enables capability or includes U.S. remote which detector identify designed presence a threat advanced these are

AVCAD. a are meaningful production that detection. DoD will verification be in we and rate This validates program later project with global on the transition working in phase honoured We're Threat a next Smiths successful include technology our next-generation standard U.S. joint testing. the to A a truly pleased as for production program service We Our AVCAD impact the with help has multiple chemical the years. for XX JCAD and protect selected XX,XXX of a full provided military agent operation could Smiths have our more than chemical leader new detector partner, Protection, Detection, process online being robust of to BCT's and applications T in revenue predecessor over systems units recently with to believe patient-to-patient with cell in Detection as to years The risk and of cell and our critical are reproducible therapy monitoring Quantum for enhances to announced without expansion lactate such system cell manufacturing. in real-time understanding, glucose Technologies where manual desktops. Terumo processes. the labour. sampling with throughout Quantum and personnel Flex their analyzer Blood used their autologous expansion integrate collaboration the mission.Turning online of control Flex CAR to Maven implementing the through addition of cell less worldwide We Terumo process process clinical difficulty our therapies, development analytics increases variability from and Cell

of clean and developers also during contamination be process cell feeding novel strategies out-of-spec one growth. to be control enter the viability continuously time, and viability as enables lactate concentrations the room aseptic therapy they significant highly sampling trials failure no induce and cell cell risk lactic Manufacturing indicator longer cell rates failure clinical are growth example, to reduce can carefully inhibit need being the sampling. save scientists adjusted operator must probe cell Maven, correlated perfom of be monitored manual can can with to Maven, For CAR-T to with monitored its can reported toxicity. With which causes. manufacturing be the in concentrations,

valuable insights of BCT broadening Terumo importantly reduce them and life-saving enable product to to portfolio. therapy process cell treatment.Turning to excited for are our developers collaborate that We accelerate objective, help these goods to and our with progress second personalized gain cost advancing

provide as that are for Exhibition MAVERICK experts customers expense. devices parameters. monitoring at in Conference and simple utilizes de at device process Roman models set multiple of technologies based to modeling suited develop process are need. connected for spectroscopy utilizes game-changing launch bio-processing this September. were real-time is in-line Our of can point second thrilled of robust at parameters. many product MAVERICK with minutes. device from media Raman variety to can that actionable types the novo take wide strategy lines, answers parameters. systems delivering in Yet with bioprocess our improved be for automatically use range such order optical purpose-built bio-processing in-line a and chemometric which year in cell Raman's Multivariant spectroscopy the sensing to of International to substantial We and for cell culture setup, require Raman process in a up spectra of The thereby continuous monitoring well months understanding

more access critical advanced the We predictive attributes. providing experts for of raw are extend to and learning machine spectral to AI control or also capability MAVERICK's quality enables parameters process open that data

device, other extensible is as MAVERICK updates. through spectroscopic Importantly, parameters analysed software and a based to

senior design word Biomedical positions Dr. Seongkyu that all Endowed and at the University been analytical the base. device of Sciences. provides lab and He cell Dr. multivariate foster pharma at beta Yoon in manufacturing previously We're Yoon academic Dr. line, noted analysis held independently very continuing media our is and was our at of Yoon sciences lowell, Sartorius. in MAVERICK, data of measurements Professor with noted overcome. the Biogen customer One placements in have of where  scale. Raman and hurdles further also that traditional to good Massachusetts our

variance evaluations analysis access pharma recently account. charge X academic improved accounts for and Our on successful Zipchip kit facilitated team with our early key

and X- that additional complements Our demonstrated collaborator, protein mass the to in-depth from more report characterization. ICIS analysis We're to spec-based robustness. improvement providing kit variance in by XX-fold Bio-Techne workflows a sensitivity our charge pleased new

As analytics their simple industry an to of and to them continues drive biopharma real advancements control array the that pharmaceutical X.X, provide the tools to time. enable technologies analytical scientists process monitor to adopt in need processes of robust

for enabled Foster the with monitoring believe with the In market.And multiomics, half metabolomics preparation critical his recovery U.S. devices mass analysis extract, objective, bio-processing same Maven at University and and clear using and further and American positioned are foundation. in devices need preserving device and We to of expanded our the to this need of for spec a Dr. critical control the the time laying XXXX of Foster results. Professor Thoracic of workflows of sepsis in and sample, of Assistant spec-based third for the area XXXX a Zipchip metabolites to plus platform the and a Professor native how the time impending full attributes. parameters the of of collaborator, sample multiomic Human his portfolio Rebel at analysis our in our top-down complemented of address We with the and well Zipchip We emerging see advantage our speeding Oklahoma. extending at centered accelerating of tenfold process and Omics addressing mass and are opportunities. Professor proteomics device. He with Duke We is we quality by around collaborations our sequencing pursuing turning suite area measurement take of our finally, Matthew boundaries Biology multi-Omics presentation, proteoform the throughput to presented precious Fornelli, at research peptides Society improved Luca Proteome In meetings. recently Zipchip the from cutting University NIH-funded on noted analysis Maverick

to excited the see are of We Dr. outcome

bio-processing this Joe our Fornelli's product exciting with handheld work. as financials. Overall, of portfolio pleased now enterprise our progress the on broadened that, with to details quarter penetration will our an I'm I in over accounts. for we more progress our and turn With call new

Handheld Revenue million quarter to to for $XX.X compared year prior was in device compared period. $XX $XX.X million, from decreasing X% the period. million, XXX our in revenue year an of increase Kevin. the MX $XX.X the Thanks, X% was XXXX third prior million

of year challenging sciences, prior Defense a in in $X.X shipments continue from device handheld quarter, AVCAD million year-over-year environment. initial was period. device as the well devices. revenue handheld production bio-processing program. serving million to third our XXX markets recently million, increase we in shipments purchase U.S. MX the announced orders initial was products the to decrease decreasing decline Department Desktop as This the a instrumentation revenue from by placements with navigate U.S. and for related desktop from revenue revenue Force shipped revenue funding Air $X.X was During in $X.X life The driven due XXX component primarily we the our primarily as under phase to in

quarter, X including X X devices, desktop chip interfaces. the During and shipped of we third level

year. key we As on continue broadened combined for Starting which of we desktop offset consumable consumables, the of focus million will $X.X handheld a to by and of and placements was revenue the our XX% decreased to revenue. more in desktop and revenue in as device year in the our service part by will service revenue revenues, for out quarter. in the million break and consists decline revenue to period placements total for XX% $X.X a metrics represented growth The accessory Recurring compared overall XXXX, in primarily devices, prior in reminder, for portfolio. the accessories growth decrease driven by remainder

for revenue, about third period. $X.X Rebel third for customers.Looking prior for service including compared inventory and costs obligations, year we year XX% lesser for several XXXX full around to to excess the active gross recurring revenue charges expect profit the the quarter as compensation. and was $X.X lower XX% of quarter decline intangible amortization continue to desktop continue margin a hit year-over-year higher was prior margin be revenue, for was noncash be at and stock period. running XXXX extent, to training with for compared month due Regarding The charges X.X obsolete to for factors, we our higher in per the of recurring year Gross million to to ahead, for million the XXXX. XX% Gross

the our the spend, our when about year throughout the we'll with intangible lower prior XXXX $XXX manage We of target third be ended and debt of continue our the to operating compensation. an the XXXX of we period. increase no mid-XXs to excluding were cash third for third million Total quarter stock-based marketable being to to margin our $X.X for cash, noncash Net remainder committed of in quarter loss headcount securities million year to $X.X the We're and million approximately million compensation. We the of stock on gross of noncash expenses and investments. thoughtful $XX was in XXXX tightly amortization as think in $X.X million outstanding. expect prior the very of to equivalents driven compared charges and quarter and had period. $XX.X continue cash in million full year for was This end compared by range in year XXXX

equivalents cash, Importantly, marketable we efficiently cash the over consumption quarter million. of and less $X manage to the securities than

enterprise We in strong to support be the cash to representing $XX year $XX the This range. year third operations.Looking we X% range remainder handheld full progress a orders, the guidance expect year contemplates purchase factors: U.S. were of and narrowed our full now million, in to remainder guidance. expect million range key Air million first, current includes We with end and have compares announced of XXXX. This are to to our $X of year growth $XX full quarter previous anticipated to X% our which Force expect obligations. our recognized the ahead for $XX to We X balance $X.X upon approximately of recently with our million revenues with XXXX. the accounts. support million XXXX, This our supportive and upgrade over revenue of range ongoing in our of of to of to the million training, QX, the the recognize fulfillment

progress great to making are our work We but accounts, expanding have do. enterprise more

are in the quarter. to we international that a deals deliver working handful fourth and U.S. We have of here

persist Second, have funding. bio-processing that the during of X strength the availability growth have market. in will due expecting ongoing maintained Overall, our expectations forensics in adjusted months space and first of year-end we handhelds and the year we positive around to our are of the overperformance pressures the

point, this we differentiator. and technology to XXXX, that comments. Kevin continue asset we to to turn a unique diversified platform back like closing an I At our As will call believe be the broad look and for to would

across our in months Overall, over the sciences bio-processing first fourth the core growth this life acceleration grown desktops, markets important we is and have macro instrumentation revenues in further quarter. areas. our X progress Joe. the climate expected Despite the Thanks, for XX% made quarter handheld our impacting

a to a with headwinds this interim, to we top desktop in up subside, on space healthy we've will the on the positioned products be balance open believe of that, full differentiated we demonstrated the questions. our now we As retain capitalize of well it the drive opportunity through a growth. strong and remain we'll as In for line set strong PAT we bio-processing our quarter, operational execution. stewards on ensure good focus With cash

question line Our comes Instructions] Steven Steve [Operator first Mah TD the yours. is of Cohen. from

think we so Air here or ordering $X cadence about should the remaining orders in how XXXX. U.S. million Force announced beyond what So the you of

deployed the purchase excited earlier and were guidance But said new like previously the and training Stephen,[Indiscernible]  existing XXX, existing team become we elements. that we're nurturing arrow Air X as really contemplated these purchase the of include new shipment. some fruition multiple expansion this part and latest Force which and for XXX of users service Yes, some Large orders this enterprise these for upgrades MX to accounts. our from orders, to orders purchase years have modules, were take extended MX do come devices, I placements about official. our of device year. within -- an this time with hardware mentioned the

we $X.X in account quarter, and million of the under recognized we timing, recognize time completed placements the For the the quarter really service are frame. arrangement Army And The about and be our over purchase X-year Force the remainder returning both the end that, great obligations it time all and in investment and the this recognize related as saw good in like the service in commitment. upgrades of our the cash a when U.S. a expect about orders. upfront third completed think as helps Air deferred will way customers. as a to It's of delivered. extended predictably $X for a a and we fulfill approximately upfront uptick revenue did which commitment And the revenue, to we the revenue fourth over technologies will trainings think before secure these -- it new device this like an U.S. and third revenue customer this. will even with $XX specifically we sell service extent handout reminder majority are quarter, to be and service great million of with good measure and we a revenue, We really and million did have portion from

$X here over about time. net-net, XXXX the in and So million rest

Yes.

should to the how customers? potential in little next Maybe sales the the you and pivoting Can September. us a traction give I in color on year? Okay. we with MAVERICK about color. the launch over early quarter this appreciate Maverick think and the And

to do we got super adds Yes. to at launch recently, do, Sure, Stephen. it to trying show this we're excited Yes, that We're to bio-processing it. here Happy and what the right? we're in build there. challenges trying PAT position we've out got confident are complementary There of a that products we're space. right set this space, products but near-term certainly to in that the

really, with takes it's time launch about seeing new was this time a and There there. movement in good up. any be product, to now, in right budgets year, September. bit people's a this it and getting So But of some may we're ramp contribution to some

here, we've would we're been in say created of that We it. pipeline a with about budgets that and first I opportunities XX conversations So XX-plus really meaning it. And internally of you're excited. strong looking XXXX and having it we super lot with we're XX, the days. in doing and for people's Maven XX a you're that as -- what before for talk we've for driver think again, over it it a capital growth Rebel getting this complements really

takes we're into There's But of that pharma up think we're conversion it and So conversations time. by having some we XXXX. response. there's ourselves that it. good we're well setting global some with, thrilled groups Obviously,

definitely it's I some So an good have there, early we of points overall sign, if concrete barometer measurement days. 'XX, and MAVERICK is think but a

Matt Our next Blair. William of comes from question Larew

on following Kevin, -- of up next good budgeting get MAVERICK following ahead the out to referenced just you cycle year. for Maybe that.

you're Just heard how on phenomenon but this de-stocking what curious think still close, may pressures we've you've to that are had the XXXX as season side, perhaps the are I conversations hearing earnings secular budget, thinking broader the in customers place. a with customers, be coming about bio-processing about throughout

next from as year. heard of kind potential talking customers what you've about you've curious just product So placements

Thanks, Yes. Matt.

definitely of and consistent hearing both think we instrumentation and what that but you're also that life there. mean we're backdrop of science right. challenging is customers I as it the macro, certainly think I there a in bio-processing with

new right? development, there. As into we're to pre-clinical technologies you get high know, bar process So that early-stage trying the is

reduced people You're been the is capital situation definitely of hold, scrutinized, the bit of a still all where really which prolonging cycle. sales seeing has more with kind on

good said, on tools of having advantage that right We in are be situations individual staying kind got handhelds as place we're will of the that a we think here tight take I there. there recovery we've to with and confident our dialogue build that and the market strength customers, monitoring, about recovery. see that to of That progress

be a I this HX, about think fall and for to remains productive and going of we're HX, -- would budgets a bit QX plays us. that's say the 'XX, translate but We've opportunities conferences it's whether you year, to of how timing out, see a closing how there. optimistic. early and next If et series cautiously into little We're seen bit those had cetera, but

quarterly of sort sort it Or guess, And placement, large typical first how I about Okay. XX,XXX if part. how but or, part, might Just did does get about unit the think legacy AVCAD Fair to could per the And that compare then the you then might economic think help a that that? think time. with traditional on the get few referenced that that enough. are Did to us placements you there materialize opportunity mix placed? cadence? of maybe second and of opportunity time a opportunity, the over over frame sort what on a opportunity, placed comprise trying I that orders it

details, support to those $X XXXX to began And you Ultimately, this and services a million get the half to into Smiths is those that deployments represented components, it's phase program. perspective. to and for initial some great the think deliver approximately into build future years beyond of $X additional with deliverables you per likely basically And required. initial previous from varies delivered full I right, production any in be JCAD we'll XXXX, in alluded first based a goal support loaded, front-end very partner but maybe complete imagine, sort it, Just get and are their and third the the unit. had the through currently QX. we're about million We extended to the quantities, which initial QX, full there's our the expect rate not of product to TAB, are products and then JCAD production foray cost excited is U.S. additional -- Somos production as timing commitment into opportunity. MX-XXX, $X.X going on upon that for government, into deliver and you span moving quarter and the full-rate phase, it to broadly, and a in a and as of contracted. on These million and more an XXXX initial especially in enable as thinking it the production

a this imagine, we're of important If opportunity. or an for and handhelds, to were get over production, AVCAD, part full the beyond. year production time, is we're we of And production no be at initial program excited full our to for to a full years to And are be focused there's rate commitments by potential as million full on could a transition be driver, it there firm on our meaningful up a or The production. have in to rate XXXX goal you a really production. lot phase, $XX can and for and rate would the and successful to rate For forward. plus right, this revenue moving even later that impact

next question comes from Puneet of Leerink Partners. Our Souda

Michael you for earlier. have change Air guide for the was could us order Puneet. help you that mentioned I in on Force You if was the that the wondering bridge contemplated

know to driving what's want the just I delta. So

in the Michael, yes, we thanks into Yes, recovery see that desktops in we question. expect persist now a here the to guidance didn't narrowed we QX. from the QX, bit that and for part the

than capital outset really be time. And the pronounced challenges bio-processing So more we're at not of large year. this any overall assuming the that at in certainly, space anticipated may flush we

However, growth overall devices really market, as strong by we've been handheld in really our the significantly growth. have forensics of discussing offset the which has today, been you bootedour

that expect year. So our side, enterprise QX good and some really been continue the for drive and handheld working high it We've meaningfully mid- really through, the others into about orders. and to on the we're expect overall to we drive we revenue feel to digits contribute talking single for growth the some handheld pipeline, strong to that

well do want good booking of more But really So we're left but first to the color? as progress other encouraged. days some to here quarter. in XX the There's Joe, do, certainly add maybe, you

QX in budget at think both I we to hit at the perspective, the point, desktops the QX and estimates back August. flush guide as just on your looked in the the narrowing of time is mainly from

I And color deal. if Okay. Yes, sense. makes a you that bit more on the wonder then Terumo get could

the about, you If can gives Or how I that that? any have guess, on to any set? a are color ideas exposure to you P&L, you customer if translate it new offer can

excited Quantum able Yes. processes. of wide from CAR-T great way from now. a vector about collaboration to we're and to. all be It's cell a lenti-viral through super stem Flex across Happy Terumo to types and manufacturing and whole therapy Yes, system. talk cell and clinical process with throughout to We cell the the cells used development their workflow expansion range

about the think collaboration perfusion Terumo. to Maven really And module think their nonexclusive it. way And really driver for about there's kind some year you we're one And really the in it earlier into of for So But importantly, reducing to kidding reducing a of really and to cost we for with into single-use is platforms. connected up we're be surrogate meet lot our help a therapy manual that is what made if the example viability. system. the this we've sampling, the it to get to we in a of of determine at and the is labor us able a talked cell taking because look able got consumable so a great risk as I think we're these of the it directly endpoint us we're and process as customer do, integrated to of out using -- value there end of goods, when using cell

areas and So that in their these are the therapy types space. can maybe applications we think contribute cell and

might to and we customer space, partners great I you a think so customers. continuing kind Sartorius therapy in be this bioreactors and work ecosystem out is have how with related with of can cell products intermaven it's relationship that And of to that recall, a their there this very our in complete and that's of with we're foster And bring similar technology solutions the example to area. into to we

Jacob next from Johnson Stephens. of  Our question comes

of it's cell Maybe market just, expect Kevin, for Maven, of is And kind offerings term, to nonexclusive. should the it to mentioned to partnership. better where the see with therap kind that something you I back bioreactor-type partner this with providers? -- Terumo that a on was good Is follow we heard this up on maybe you lack strategy expand of for other go-to kind for of

Yes.

contributor a of And with then on right makes see of, we think process lactate strong and development mean we it it, actually reach maven our a being kind being just these in also and analytics Maven collaboration and to to you're out, lot forms I call as streaming solution to sense sales to all extend to it's control, more rather actionable the think whether these being I spectrum online to have accounts. trying agreements, able glucose really teams, insights. be with look full partnered it's agreements, the customers there will. ways, various various whether an really provide device, friendly, in OEM, a team of and of really a if you a whether it's co-marketing giving than

as examples space. to biologic already, mentioned that we super we with think I Sartorius working of yes, I've we're excited with go as So and And forward as the well, show working hope more Terumo.

and on effort type of but the helpful. kind Got of kind question. in then macro time desktop you side focusing I'm it. Kevin, current that curious capital also little side. and of the on handheld -- side of lot of last to challenged Obviously, a company's the marketing, And sales the product That's in the couple business years in is seeing bigger these of a resources terms the more opportunities handheld picture development. just more maybe, the your where you're Are allocation new environment, of business? on on

quality a really are X PAT and can set and a really think this set like use complementary build things. one, trying space process time doing of that scanner absolutely foundation, desktop towards to this build just I that's space, I to compelling device Tricorder in marching technologies holistic devices attributes. that out and products of providing of the we're out we to bring kind mean, that

today, and all but are absolutely for doubling of we're showcasing successful and day got with and all we're spending we've Terumo work customers of making our and every of customers experiencing So and we a Rebel our that with lot really our each we benefits down one out in devices. they're there the products, every that, sure time

in our really there of has counterfeit lot focus, major see overperforming to pharmaceuticals, us with crisis, date. fentanyl the major and our opioid customers help that that a that has us. resource been the and area lot of for of absolutely our able solution. stopping. to to been And the us plans in effort So deployment don't We and impressive we to is drivers said, crisis a team see out handheld But opportunity, with

investing absolutely space. want to we we space, own we're win that So that space, and that want and in to

map, are we investments and market R&D investments, development. continuing on sales to road So both there work make

from next Dan Stifel. comes Arias of Instructions]Our question  [Operator

this last to Kevin, look a there, we're in the back-filling point the ahead. nice order starting book year done you maybe Army job to the have your where getting we're contract year roll-off. Obviously, handheld to post the point

the you compare this then sales that funnel made time in So how into comments year? handhelds you bit wait things just the for Can but you that get which the last I XQ. we'll on maybe touch outlook, in to funnel know a working both on to here strength XXXX and need Joe heading little you on the to on for see the you details way and of might

expand build first are deck And working to get that enterprise that to booted we the performance. to certainly the the over within months, up Yes, out sure, conversion here always has sure. are have we our opportunities of Absolutely. enterprise mean, pleased I we overall did accounts. pilot on that and X XX% growth there, handhelds which

we it's that plenty of feel a certainly XX elements. and to by big to here, plenty sockets it always with a and and navigate, over pilots growth have reliance with working just got months, the how enterprise we're have the We really and work paced orders TAM working that last be beacons arrows pipeline and transitioned and our being that those. whether enterprise accessories other through We priority we've have the number on broadened of really but are of promote offerings and always year budget each

good about there. operating predict be really subside, If optimistic say these we're we holistically XXX the is but moving moments, in really things about platform early a in differentiator. technology we're and anecdotes can't and think to we're here, would I We for right XXXX indicator So seem NASA some the direction. bio-processing in cautiously and unique we here broad diversified at positive really XXXX, and of a forensics. decent back when seeing being investing we And recovery we headwinds think the there's runway momentum Importantly, in so think goal devices cash, product our serving many got keep managing more we've analytical that XX-plus that percent a and with as handheld we growth foundation in And can we're now on long have towards been going. lot doing to very of and tools. portfolio that technology as of a our a We're really and process we've job working and there we shots do with our and confident keep to grower hearing but think lot got a that our going getting think got we at we're kind a soon

growth mean, the a here the early about our expanded you of have about things XXXX and and lessening and our future. you So days, portfolio, in you here look, good think we not-too-distant bit health I hope if desktop is macro the exciting some durability these if in flagship demonstrated will that combine get think

would great. be that Yes,

been Okay. seem for and And workflow you, where tends year. then the this choppy Those a Revel cell that just and the be usage gene on areas but therapy is to that modality to intensity, maybe market where the new be good lower, higher thing and a has or customers.

are ready So next as additive that ups see there. that again, the the Or that about that, -- talking we're say do will be to average and to we as as you look given to case of we that intensity? utilization you not year, the bucket just because downs

that these hard that. continuing I dice of strong and dice the could don't Obviously, get kit drivers think can dynamics past increase we're yet. our I there sign working to, of mean think X.X about I and of Yes, kind it. in discussed goals to average, of we do per and during is, it's it's good we're to there. on it macro kit. there ultimate $XX,XXX consumables, for modalities is on month the us to and from are working it by right, kit in getting some like per been to the yes, a course, half the average month more at users, just to I'd times, of hanging modality hit see be for But that we've to active and a X.X drive X think month, a slice worth about We you're slice some And has increase.

the I remarks. will With that handback closing for

And time call. your end you we'll that, much, very you. Thank thank the Well, with and we today. appreciate

joining, gentlemen. Thank you and ladies for

You now your lines. disconnect may