GlobeNewswire Inc | Feb 10, 2021 04:05PM EST

February 10, 2021

Fourth Quarter Total Revenue Increased 38 Percent to $44.6 million

Fourth Quarter Product and Service Revenue Increased 26 Percent to $40.5 million

Full Year Total Revenue Increased 18 Percent to $138.1 million

Collaboration with PLT Tech to Market CyTOF Technology to Clinical Labs in China

SOUTH SAN FRANCISCO, Calif., Feb. 10, 2021 (GLOBE NEWSWIRE) -- Fluidigm Corporation (Nasdaq:FLDM), an innovative biotechnology tools provider with a vision to improve life through comprehensive health insight, today announced financial results for the fourth quarter and full year ended December 31, 2020.

Financial Highlights

Fourth Quarter 2020

-- Fourth quarter revenue increased 38 percent to $44.6 million from $32.4 million in the fourth quarter of 2019. Product and service revenue increased 26 percent to $40.5 million. Total revenue included $4.1 million of other revenue. -- GAAP net loss for the quarter was $18.0 million, compared with a GAAP net loss of $12.7 million for the fourth quarter of 2019. -- Non-GAAP net loss was $9.8 million for the quarter, compared with a $2.3 million non-GAAP net loss for the fourth quarter of 2019.

Full Year 2020

-- Revenue increased 18 percent to $138.1 million from $117.2 million in full year 2019. Total revenue included $15.6 million of other revenue. -- GAAP net loss was $53.0 million, compared with a GAAP net loss of $64.8 million for the full year of 2019. -- Non-GAAP net loss was $21.8 million for the full year, compared with a non-GAAP net loss of $23.7 million for the full year of 2019.

Revenue in the fourth quarter was the highest in the companys history, driven by exceptional performance in microfluidics as well as sequential improvement in mass cytometry, said Chris Linthwaite, President and CEO. Demand for our saliva-based COVID-19 tests was notable, and we saw broad-based improvement in our core business lines compared to earlier periods in the pandemic. For the full year, we delivered record-breaking revenue while navigating an incredibly volatile operating environment that impacted all facets of our business. We made excellent progress in our molecular diagnostics and immune research strategies, expanding our customer base and driving growth in our recurring revenue sources. In addition, we strengthened our balance sheet and secured new partnerships to build new capabilities, access new markets and develop new products.

Linthwaite added, Although COVID-19 caused significant disruption to our business, our agility and responsiveness paved the way for accelerating growth and increased opportunities in 2021 and beyond. We anticipate further progress in transforming our microfluidics franchise into a durable diagnostics platform with new product releases and partnerships. Additionally, our mass cytometry franchise is moving closer to healthcare decision making with a strong increase in publications, clinical studies, and an exciting new collaboration to enter regulated markets in China. We anticipate that new product innovation, new collaborations and partnerships, and a growing body of research and clinical trial insights will drive growth as we pioneer new fields of scientific exploration in human biology.

A reconciliation of GAAP to non-GAAP financial measures can be found in the tables of this news release.

Fourth Quarter 2020 ResultsRevenue by market and category:

Total by Category Revenue by Category Year-over-Year Change % of Total RevenueInstruments $14.9 million (6 )% 33 %Consumables $19.5 million 79 % 44 %Service $6.1 million 13 % 14 %Other $4.1 million N/A 9 %Total revenue $44.6 million 38 % 100 %

Mass Cytometry by Revenue by Year-over-Year % of TotalCategory Category Change RevenueInstruments $9.8 million (24 )% 50 %Consumables $5.4 million 9 % 28 %Service $4.3 million 15 % 22 %Total $19.5 million (9 )% 100 %

Microfluidics Revenue by Category Year-over-Year Change % of Totalby Category*Instruments $5.1 million 71 % 24 %Consumables $14.1 million 137 % 67 %Service $1.8 million 9 % 9 %Total $21.0 million 98 % 100 %

*Microfluidics by category excludesOtherRevenueof $4.1million.

Revenue by geographic area:

Geographic Area Revenue by Geography Year-over-Year Change % of TotalAmericas* $22.1 million 87 % 50 %EMEA $14.3 million 24 % 32 %Asia-Pacific $8.2 million (10 )% 18 %Total revenue $44.6 million 38 % 100 %

*Americas geographic areaincludesOtherRevenueof $4.1million.

Loss from operations:GAAP loss from operations for the fourth quarter was $16.9 million, compared with a GAAP loss from operations of $9.2 million for the fourth quarter of 2019. Non-GAAP loss from operations was $8.8 million for the fourth quarter, compared with a $1.7 million non-GAAP loss from operations for the fourth quarter of 2019.

GAAP loss from operations for the full year 2020 was $51.0 million, compared with a GAAP loss from operations of $51.8 million for the full year 2019. Non-GAAP loss from operations was $20.4 million for the full year 2020, compared with a $24.1 million non-GAAP loss from operations for the full year 2019.

Cash and cash equivalents and restricted cash as of December 31, 2020:Cash and cash equivalents and restricted cash as of December 31, 2020, totaled $69.5 million, compared to $73.4 million as of September 30, 2020. Cash and cash equivalents, available-for-sale securities and restricted cash as of December 31, 2019, totaled $60.7 million.

Operational and Business Progress

Microfluidics

-- Thirty instruments are now generating patient testing results. -- The company received a CE-IVD mark for its Advanta Dx SARS-CoV-2 RT-PCR Assay for COVID-19. -- Two private labs based in Missouri, Helix Specialty Diagnostics and Genomic LTC DX, are partnering to provide COVID-19 testing using the Advanta Dx Assay. Both are certified under the Clinical Laboratory Improvement Amendments (CLIA). -- University adoption progressed with George Mason University providing COVID-19 testing with the Advanta Dx SARS-CoV-2 RT-PCR Assay. -- A growing body of peer-reviewed research is confirming the accuracy of saliva-based testing

Mass Cytometry:

-- The company announced a collaboration with Zhejiang PuLuoTing Health Technology Co. Ltd to market CyTOF technology to clinical labs in China. As part of the agreement, the companies are collaborating to seek approval for a CyTOF instrument authorized for diagnostic use in China. -- The National Institutes of Health is sponsoring a study at Stanford University School of Medicine utilizing mass cytometry and the companys Maxpar Direct Immune Profiling Assay to evaluate immune responses in pediatric patients with COVID-19. -- A new study published by Georgetown Lombardi Comprehensive Cancer Center validates the potential for Imaging Mass Cytometry to provide new insights into the interactions between pancreatic tumor cells and the immune system and to identify novel and actionable targets for pancreatic cancer therapy. -- The mass cytometry active installed instrument base increased to 328 at the end of 2020. This included 102 imaging-enabled instruments. -- Through January 2021, CyTOF technology was used in 129 clinical trials, including 8 for Imaging Mass Cytometry. -- As of the end of 2020, total publications and reviews involving CyTOF technology exceeded 1,380 total, including 88 publications and reviews for Imaging Mass Cytometry. Publications are up 100% percent compared to the end of 2019.

Industry recognition:

-- Fluidigm was named to Greater Torontos Top Employers for 2021, the second time in as many years the company was chosen for the annual listing of organizations with exceptionally positive and engaging environments that inspire and motivate employees.

Full Year 2020 Results

Revenue by category:

Category Revenue by Category Year-over-Year Change % of Total RevenueInstruments $45.5 million (9 )% 33 %Consumables $54.4 million 20 % 40 %Service $22.6 million 6 % 16 %Other $15.6 million N/A 11 %Total revenue $138.1 million 18 % 100 %

Mass Cytometry by Category Revenue by Category Year-over-Year Change % of TotalInstruments $28.5 million (31 )% 46 %Consumables $18.0 million 1 % 29 %Service $15.6 million 12 % 25 %Total $62.1 million (15 )% 100 %

Microfluidics Revenue by Category Year-over-Year Change % of Totalby Category*Instruments $17.0 million 102 % 28 %Consumables $36.4 million 32 % 60 %Service $7.0 million (6 )% 12 %Total $60.4 million 39 % 100 %

*Microfluidics by category excludesOtherRevenueof $15.6million.

Revenue by geographic area:

Geographic Area Revenue by Geography Year-over-Year Change % of Total RevenueAmericas* $74.5 million 59 % 54 %EMEA $37.8 million (6 )% 27 %Asia-Pacific $25.8 million (15 )% 19 %Total revenue $138.1 million 18 % 100 %

*Americas geographic areaincludesOtherRevenueof $15.6million.

Active installed base :

Active installed base for selected instruments As of December 31, 2020Mass Cytometry 328Imaging-enabled instruments 102*Biomark? generating patient testing results 30*Biomark/Biomark HD/EP1? for other applications 457

*Subset of Mass Cytometry and Biomark instrument totals

Annual 2021 Guidance

-- Product and service revenue of approximately $140 million to $150 million, or approximately 14 to 22 percent year-over-year growth. -- Other revenue of $4 million to $5 million. -- GAAP net loss of $50 million to $54 million. -- Non-GAAP net loss of $17 million to $21 million.

Q1 2021 Guidance

-- Product and service revenue of approximately $29 million to $31 million, or approximately 20 percent to 29 percent year-over-year growth. -- Other revenue of $1 million to $2 million. -- Total revenue of approximately $30 million to $33 million.

Conference Call InformationFluidigm will host a conference call today, February 10, 2021, at 2:00 p.m. PT, 5:00 p.m. ET, to discuss fourth quarter and full year 2020 financial results and operational progress. Individuals interested in listening to the conference call may do so by dialing the following:

US domestic callers: (877) 556-5248 Outside US callers: (720) 545-0029Please reference Conference ID: 4664638

A live webcast of the conference call will be available online from the Investor Relations page of the Companys website at Events & Presentations. The link will not be active until 1:45 p.m. PT, 4:45 p.m. ET on February 10, 2021.

After the live webcast, the call will be archived on Fluidigms Investor Relations page at investors.fluidigm.com. In addition, a telephone replay of the teleconference will be available approximately 90 minutes after the end of the call.

The replay dial-in numbers are:

US domestic callers: (855) 859-2056 Outside US: (404) 537-3406 Please reference Conference ID: 4664638

The telephone replay will be available until February 17.

Statement Regarding Use of Non-GAAP Financial InformationFluidigm has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-and twelve-month periods ended December 31, 2020, and December 31, 2019. Management believes that non-GAAP financial measures, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the companys core operating results. Management uses non-GAAP measures to compare the companys performance relative to forecasts and strategic plans and to benchmark the companys performance externally against competitors. Our estimates of forward-looking non-GAAP operating loss exclude estimates for stock-based compensation expense and depreciation and amortization; loss on disposal of property and equipment; future changes relating to developed and acquired technologies; other intangible assets; and income taxes, among other items, certain of which are presented in the tables accompanying our earnings release. A reconciliation of adjusted guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding certain expenses that may be incurred in the future. The time and amount of certain material items needed to estimate non-GAAP financial measures are inherently unpredictable or outside of our control. Material changes to any of these items could have a significant effect on guidance and future GAAP results. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the companys operating results as reported under U.S. GAAP. Fluidigm encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release.

Use of Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding revenue growth and opportunities, development and expansion of Fluidigms diagnostic business, new product releases, additional collaborations and partnerships, benefits and increasing adoption and utilization of Fluidigm mass cytometry products and technologies, benefits and plans for contractual relationships, regulatory filings and authorizations, adoption of and demand for the Advanta Dx SARS-CoV-2 RT-PCR assay and related Fluidigm microfluidics products, and revenue and net loss guidance for future periods. Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from currently anticipated results, including but not limited to risks relating to the potential adverse effects of the coronavirus pandemic on our business and operating results; the possible loss of key employees, customers, or suppliers; uncertainties in contractual relationships; customers and prospective customers continuing to curtail or suspend activities utilizing our products; our ability and/or the ability of the research institutions utilizing our products and technology to obtain and maintain Emergency Use Authorization from the FDA and any other requisite authorizations or approvals to use our products and technology for diagnostic testing purposes; potential changes in priorities or requirements for Emergency Use Authorizations or other regulatory authorizations or approvals; potential limitations of any Emergency Use Authorization or other regulatory authorizations or approvals; potential changes in the priorities of government agencies; challenges inherent in developing, manufacturing, launching, marketing, and selling new products; reliance on sales of capital equipment for a significant proportion of revenues in each quarter; seasonal variations in customer operations; unanticipated increases in costs or expenses; uncertainties in contractual relationships; reductions in research and development spending or changes in budget priorities by customers; Fluidigm research and development and distribution plans and capabilities; interruptions or delays in the supply of components or materials for, or manufacturing of, Fluidigm products; potential product performance and quality issues; risks associated with international operations; intellectual property risks; and competition. Information on these and additional risks and uncertainties and other information affectingFluidigm'sbusiness and operating results is contained in its Annual Report on Form 10-K for the year endedDecember 31, 2019, and in its other filings with theSecurities and Exchange Commission. These forward-looking statements speak only as of the date hereof.Fluidigmdisclaims any obligation to update these forward-looking statements except as may be required by law.

About Fluidigm Fluidigm(Nasdaq:FLDM) focuses on the most pressing needs in translational and clinical research, including cancer, immunology, and immunotherapy. Using proprietary CyTOFand microfluidics technologies, we develop, manufacture, and market multi-omic solutions to drive meaningful insights in health and disease, identify biomarkers to inform decisions, and accelerate the development of more effective therapies. Our customers are leading academic, government, pharmaceutical, biotechnology, plant and animal research, and clinical laboratories worldwide. Together with them, we strive to increase the quality of life for all. For more information, visitfluidigm.com.

Fluidigm, theFluidigmlogo, Advanta, Biomark, CyTOF, Direct, EP1, Imaging Mass Cytometry, Immune Profiling Assay, and Maxpar are trademarks and/or registered trademarks ofFluidigm Corporationinthe United Statesand/or other countries.All other trademarks are the sole property of their respective owners. The Advanta Dx SARS-CoV-2 RT-PCR Assay is for In Vitro Diagnostic Use. It is for Use under Emergency Use Authorization Only. Rx Only. Other Fluidigmproducts are provided for Research Use Only. Not for use in diagnostic procedures.

Available InformationWe use our website (fluidigm.com), investor site (investors.fluidigm.com), corporate Twitter account (@fluidigm), Facebook page (facebook.com/Fluidigm), and LinkedIn page (linkedin.com/company/fluidigm-corporation) as channels of distribution of information about our products, our planned financial and other announcements, our attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and we may use these channels to comply with our disclosure obligations under Regulation FD. Therefore, investors should monitor our website and our social media accounts in addition to following our press releases,SECfilings, public conference calls, and webcasts.

Contact:

Investors:Agnes LeeVice President, Investor Relations650 416 7423agnes.lee@fluidigm.com

Media:Mark SpearmanSenior Director, Corporate Communications650 243 6621mark.spearman@fluidigm.com

FLUIDIGM CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Revenue: Product revenue $ 34,348 $ 26,688 $ 99,944 $ 95,416 Service revenue 6,122 5,402 22,579 21,277 Product and service 40,470 32,090 122,523 116,693 revenueOther revenue (Note 1) 4,138 350 15,621 550 Total revenue 44,608 32,440 138,144 117,243 Costs and expenses: Cost of product revenue 15,631 12,452 47,527 45,461 Cost of service revenue 2,760 2,100 7,291 7,503 Cost of product and 18,391 14,552 54,818 52,964 service revenueResearch and 11,186 8,278 36,461 31,640 developmentSelling, general and 31,935 18,791 97,901 84,478 administrativeTotal costs and 61,512 41,621 189,180 169,082 expensesLoss from operations (16,904 ) (9,181 ) (51,036 ) (51,839 )Interest expense (890 ) (643 ) (3,572 ) (4,279 )Loss from ? (3,020 ) ? (12,020 )extinguishment of debtOther income, net 755 513 507 1,433 Loss before income (17,039 ) (12,331 ) (54,101 ) (66,705 )taxesIncome tax benefit (987 ) (354 ) 1,081 1,915 (expense)Net loss $ (18,026 ) $ (12,685 ) $ (53,020 ) $ (64,790 )Net loss per share, $ (0.24 ) $ (0.18 ) $ (0.74 ) $ (0.97 )basic and dilutedShares used incomputing net loss per 74,277 69,706 72,044 66,779 share, basic anddiluted Note: (1) Other revenue includes development revenue, license revenue, royaltyrevenue, and grant revenue.

FLUIDIGM CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) December 31, 2020 2019 (1)ASSETS Current assets: Cash and cash equivalents (Note 2) $ 68,520 $ 21,661 Short-term investments (Note 2) ? 36,978 Accounts receivable, net 25,423 18,981 Inventories, net 19,689 13,884 Prepaid expenses and other current assets 4,031 4,592 Total current assets 117,663 96,096 Property and equipment, net 17,531 8,056 Operating lease right-of-use asset, net 38,114 4,860 Other non-current assets 4,680 5,492 Developed technology, net 40,206 46,200 Goodwill 106,563 104,108 Total assets $ 324,757 $ 264,812 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accounts payable $ 9,220 $ 5,152 Accrued compensation and related benefits 13,787 5,160 Operating lease liabilities, current 2,973 1,833 Other accrued liabilities 14,794 8,873 Deferred revenue, current 13,475 11,803 Total current liabilities 54,249 32,821 Convertible notes, net 54,224 53,821 Deferred tax liability 8,697 11,494 Operating lease liabilities, non-current 38,178 4,323 Deferred revenue, non-current 7,990 8,168 Deferred grant income, non-current 21,036 ? Other non-current liabilities 1,333 573 Total liabilities 185,707 111,200 Total stockholders? equity 139,050 153,612 Total liabilities and stockholders? equity $ 324,757 $ 264,812 Notes: (1) Derived from audited consolidated financial statements(2) Cash and cash equivalents, available for sale securities and restricted cash consist of:Cash and cash equivalents $ 68,520 $ 21,661 Short-term investments ? 36,978 Restricted cash (included in prepaid and other 1,016 2,075 current assets, and other non-current assets)Total cash and cash equivalents, available for sale $ 69,536 $ 60,714 securities and restricted cash

FLUIDIGM CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Twelve Months Ended December 31, 2020 2019Operating activities Net loss $ (53,020 ) $ (64,790 )Depreciation and amortization 4,014 4,605 Stock-based compensation expense 14,451 11,393 Amortization of developed technology 11,910 11,200 Impairment of intangible ? 443 Loss from extinguishment of debt ? 12,020 Loss on disposal of property and equipment 212 89 Other non-cash items 4,602 3,427 Change in assets and liabilities, net 2,414 (13,597 )Net cash used in operating activities (15,417 ) (35,210 ) Investing activities Proceeds from RADx grant 21,036 ? Acquisition, net of cash acquired (5,154 ) ? Purchases of investments ? (62,370 )Proceeds from sale of investments 5,010 ? Proceeds from maturities of investments 31,800 25,600 Purchases of property and equipment (12,717 ) (2,531 )Net cash provided by (used in) investing activities 39,975 (39,301 ) Financing activities Proceeds from issuance of common stock, net of 20,226 ? commissionsProceeds from debt issuance ? 55,000 Repayment of long-term debt ? (51,826 )Payments of debt and equity issuance cost (684 ) (1,888 )Proceeds from employee equity programs, net 1,315 1,504 Net cash provided by financing activities 20,857 2,790 Effect of foreign exchange rate fluctuations on 385 56 cash and cash equivalentsNet increase (decrease) in cash, cash equivalents 45,800 (71,665 )and restricted cashCash, cash equivalents and restricted cash at 23,736 95,401 beginning of periodCash, cash equivalents and restricted cash at end $ 69,536 $ 23,736 of period Cash and cash equivalents, restricted cash and available for sale securities consist of:Cash and cash equivalents $ 68,520 $ 21,661 Short-term investments ? 36,978 Restricted cash (included in prepaid and other 1,016 2,075 current assets, and other non-current assets)Total cash and cash equivalents, available for sale $ 69,536 $ 60,714 securities and restricted cash

FLUIDIGM CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION(In thousands, except per share amounts)(Unaudited) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET LOSS Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net loss (GAAP) $ (18,026 ) $ (12,685 ) $ (53,020 ) $ (64,790 )Stock-based 4,093 3,101 14,451 11,393 compensation expenseAmortization ofdeveloped technology 2,981 2,800 11,910 11,200 (a)Depreciation and 1,026 1,121 4,014 4,605 amortizationInterest expense (b) 890 643 3,572 4,279 Impairment of ? 443 ? 443 intangible (c)Loss on disposal of 21 37 212 89 property and equipmentLoss from ? 3,020 ? 12,020 extinguishment of debtBenefit fromacquisition related (742 ) (742 ) (2,968 ) (2,968 )income taxes (d)Net loss (Non-GAAP) $ (9,757 ) $ (2,262 ) $ (21,829 ) $ (23,729 )Shares used in net loss per share calculation -basic and diluted (GAAP 74,277 69,706 72,044 66,779 and Non-GAAP) Net loss per share -basic and diluted $ (0.24 ) $ (0.18 ) $ (0.74 ) $ (0.97 )(GAAP)Net loss per share -basic and diluted $ (0.13 ) $ (0.03 ) $ (0.30 ) $ (0.36 )(Non-GAAP) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP PRODUCT AND SERVICE MARGIN Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Product and service $ 22,079 $ 17,538 $ 67,705 $ 63,729 gross profit (GAAP)Amortization ofdeveloped technology 2,800 2,800 11,200 11,200 (a)Depreciation and 415 399 1,630 1,714 amortization (e)Stock-basedcompensation expense 100 95 412 423 (e)Product and service $ 25,394 $ 20,832 $ 80,947 $ 77,066 gross profit (Non-GAAP) Product and servicemargin percentage 54.6 % 54.7 % 55.3 % 54.6 %(GAAP)Product and servicemargin percentage 62.7 % 64.9 % 66.1 % 66.0 %(Non-GAAP) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP OPERATING EXPENSES Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Operating expenses $ 43,121 $ 27,069 $ 134,362 $ 116,118 (GAAP)Stock-basedcompensation expense (3,993 ) (3,006 ) (14,039 ) (10,970 )(f)Depreciation and (792 ) (722 ) (3,094 ) (2,891 )amortization (f)Impairment of ? (443 ) ? (443 )intangible (c)Loss on disposal of (21 ) (37 ) (212 ) (89 )property and equipmentOperating expenses $ 38,315 $ 22,861 $ 117,017 $ 101,725 (Non-GAAP) ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP LOSS FROM OPERATIONS Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019Loss from operations $ (16,904 ) $ (9,181 ) $ (51,036 ) $ (51,839 )(GAAP)Stock-based 4,093 3,101 14,451 11,393 compensation expenseAmortization ofdeveloped technology 2,981 2,800 11,910 11,200 (a)Depreciation and 1,026 1,121 4,014 4,605 amortization (e)Impairment of ? 443 ? 443 intangible (c)Loss on disposal ofproperty and equipment 21 37 212 89 (e)Loss from operations $ (8,783 ) $ (1,679 ) $ (20,449 ) $ (24,109 )(Non-GAAP) (a) represents amortization of developed technology in connection with the DVSacquisition(b) represents interestexpense, primarily on convertible debt(c) represents impairment of intangible no longer used in our product lines(d) represents the tax impact on the purchase of intangible assets inconnection with the DVS acquisition(e) represents expenseassociated with cost of product revenue(f) represents expense associated with research and development, selling,general and administrative activities