GlobeNewswire Inc | Nov 8, 2021 04:05PM EST

November 08, 2021

FREMONT, Calif., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Cytek Biosciences, Inc. (Cytek Biosciences or Cytek) (Nasdaq: CTKB) today reported financial results for the third quarter ended September30, 2021.

Recent Highlights

-- Total revenue was $34.4 million for the third quarter, representing a 37% increase over the third quarter of 2020 -- Expanded the installed base to 970 instruments, with 115 instrument placements during the third quarter -- Launched a 25-color immunoprofiling assay, providing researchers with a ready-to-use solution for identifying major human immune subpopulations which play important roles in the innate and adaptive immune response to various diseases -- Announced the acquisition of the cell analysis business of Tonbo Biosciences, which includes an extensive portfolio of life science research reagents for flow cytometry, a natural complement to Cyteks cFluor family of proprietary reagents

"Our team delivered strong results this quarter, demonstrating solid execution across our business, said Dr. Wenbin Jiang, CEO of Cytek Biosciences. We continued to expand our installed instrument base during the quarter, launched an innovative 25-color immunoprofiling assay, and recently announced an acquisition enhancing our reagent portfolio offering. We plan to continue building on our progress and provide our flow cytometry solutions to more users around the world.

Third Quarter 2021 Financial ResultsTotal revenue for the third quarter of 2021 was $34.4 million, a 37% increase over the third quarter of 2020. This increase was primarily driven by an increase in product revenue due to higher unit sales of the Aurora, Aurora Cell Sorter, and Northern Lights systems.

Gross profit was $21.4 million for the third quarter of 2021, an increase of 37% compared to a gross profit of $15.6 million in the third quarter of 2020. Gross profit margin was 62% in the third quarter of 2021 compared to 62% in the third quarter of 2020. Non-GAAP gross profit margin in the third quarter of 2021 was 64% compared to 62% in the third quarter of 2020, after adjusting for stock-based compensation expense.

Operating expenses were $18.3 million for the third quarter of 2021, a 106% increase from $8.9 million in the third quarter of 2020.

-- Research and development expenses were $6.1million for the third quarter of 2021 compared to $3.4million for the third quarter of 2020. The increase in R&D expenses was primarily due to increased investment and growth in Cyteks R&D team. -- Sales and marketing expenses were $6.3million for the quarter compared to $3.8million for the same quarter last year. The increase in expenses was primarily due to an increase in headcount and personnel-related expenses, as well as an increase in advertising and marketing activities. -- General and administrative expenses were $5.9million for the third quarter of 2021, an increase from $1.7million in the third quarter of 2020. The increase of $4.2million in general and administrative expenses was primarily due to expenses related to becoming a public company as well as infrastructure services to support the growth of Cyteks overall operations.

Income from operations in the third quarter of 2021 was $3.1 million compared to $6.7 million in the third quarter of 2020. Net income in the third quarter of 2021 was $1.6 million compared to net income of $6.5 million in the third quarter of 2020.

Non-GAAP net income in the third quarter of 2021 was $4.1 million compared to $6.7 million in the third quarter of 2020, after adjusting for stock-based compensation expense.

Cash and cash equivalents were approximately $377 million as of September 30, 2021.

Webcast InformationCytek will host a conference call to discuss the third quarter 2021 financial results on Monday, November 8, 2021, at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at investors.cytekbio.com.

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. Cyteks 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. Cyteks FSP platform includes its core instruments, the Aurora and Northern Lights systems, the Aurora CS cell sorter, 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 Cyteks Northern Lights CLC system, which is available for clinical use in China and the European Union, Cyteks products are for research use only not for use in diagnostic procedures or for clinical purposes.

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

In addition to filings with the Securities and Exchange Commission (SEC), press releases, public conference calls and webcasts, Cytek uses its website (www.cytekbio.com), LinkedIn pageand corporate Twitter account as channels of distribution of information about its company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters. Such information may be deemed material information and Cytek may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Cyteks website, LinkedIn page, and Twitter account in addition to following its SEC filings, news releases, public conference calls and webcasts.

Statement Regarding Use of Non-GAAP Financial InformationCytek has presented certain financial information in accordance withU.S.GAAP and also on a non-GAAP basis for the three- and nine-month periods endedSeptember 30, 2021 andSeptember 30, 2020. 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. 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 underU.S.GAAP.Cytek 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.

Forward-Looking StatementsThis 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 companys business operations and its plans to continue building on its progress and to provide its flow cytometry solutions to more users around the world. These statements are based on managements 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 onForm10-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 OlsenLages & Associates(949) 453-8080stephanie@lages.com

Investor Relations Contact:Carrie Mendivil/Mary Kate McDonoughGilmartin Group LLCinvestors@cytekbio.com

Cytek Biosciences, Inc.Consolidated Statements of Operations and Comprehensive Income(Unaudited)

Three months ended Nine months ended(In thousands, September30, September30, September30, September30,except share and 2021 2020 2021 2020per share data) Revenue, net: Product $ 32,191 $ 23,153 $ 83,567 $ 56,688 Service 2,185 1,943 5,489 5,532 Total revenue, 34,376 25,096 89,056 62,220 netCost of sales: Product 9,915 7,556 25,155 23,644 Service 3,075 1,924 8,284 6,315 Total cost of 12,990 9,480 33,439 29,959 salesGross profit 21,386 15,616 55,617 32,261 Operating expenses:Research and 6,078 3,376 17,366 9,308 developmentSales and 6,331 3,838 16,184 10,428 marketingGeneral and 5,905 1,691 14,052 6,742 administrativeTotal operating 18,314 8,905 47,602 26,478 expensesIncome from 3,072 6,711 8,015 5,783 operationsOther income (expense):Interest expense (441 ) (2 ) (1,249 ) (3 )Interest income 12 3 31 105 Other income (393 ) 185 (1,128 ) 543 (expense), netTotal otherincome (822 ) 186 (2,346 ) 645 (expense), netIncome before 2,250 6,897 5,669 6,428 income taxesProvision for(benefit from) 655 357 1,302 (7,384 )income taxesNet income $ 1,595 $ 6,540 $ 4,367 $ 13,812 Less: net incomeallocated to (1,103 ) (5,094 ) (4,367 ) (11,171 )participatingsecuritiesNet incomeattributable tocommon $ 492 $ 1,446 $ - $ 2,641 stockholders,basic anddilutedNet incomeattributable tocommon $ - $ 0.05 $ - $ 0.09 stockholders pershare, basicNet incomeattributable tocommon $ - $ 0.05 $ - $ 0.09 stockholders pershare dilutedWeighted-averageshares used incalculating net 108,322,433 28,700,005 57,534,080 28,551,126 income pershare, basicWeighted-averageshares used incalculating net 113,637,377 31,058,757 62,095,275 30,763,586 income pershare, dilutedComprehensive income:Net income $ 1,595 $ 6,540 $ 4,367 $ 13,812 Foreign currencytranslation 34 145 505 49 adjustment, netof taxNetcomprehensive $ 1,629 $ 6,685 $ 4,872 $ 13,861 income

Cytek Biosciences, Inc.Consolidated Balance Sheets

(In thousands, except share and per share data) September30, December31, 2021 2020 (unaudited) (audited)Assets Current assets: Cash and cash equivalents $ 376,771 $ 165,231 Trade accounts receivable, net 29,450 16,990 Restricted cash - 888 Inventories 27,511 23,018 Prepaid expenses and other current assets 6,094 2,495 Total current assets 439,826 208,622 Deferred income tax assets, noncurrent 7,378 7,378 Property and equipment, net 4,982 2,140 Goodwill 476 476 Intangible assets, net 361 274 Other noncurrent assets 1,297 1,089 Total assets $ 454,320 $ 219,979 Liabilities, redeemable convertible preferred stock and stockholders? equity (deficit)Current liabilities: Trade accounts payable $ 3,927 $ 2,944 Legal settlement liability, current 7,405 6,253 Accrued expenses 10,578 9,048 Other current liabilities 2,044 4,626 Deferred revenue, current 5,885 3,665 Total current liabilities 29,839 26,536 Legal settlement liability, noncurrent 12,633 10,959 Deferred revenue, noncurrent 7,741 3,456 Other noncurrent liabilities 737 737 Total liabilities $ 50,950 $ 41,688 Commitments and contingencies (Note 15) Redeemable convertible preferred stock, $0.001par value; 10,000,000 and 87,268,694 sharesauthorized, zero and 87,268, 694 issued andoutstanding as of September 30, 2021 and - 194,319 December 31, 2020, respectively; aggregateliquidation preference of zero and $199,230 asof September 30, 2021 and December 31, 2020,respectively.Stockholders? equity (deficit): Common stock, $0.001 par value; 1,000,000,000and 153,329,500 authorized shares as ofSeptember 30, 2021 and December 31, 2020, 125 23 respectively; 133,725,741 and 31,241,916 issuedand outstanding shares as of September 30, 2021and December 31, 2020, respectively.Additionalpaid-incapital 420,600 6,491 Accumulated deficit (18,240 ) (22,607 )Accumulated other comprehensive income 570 65 Noncontrolling interest in consolidated 315 - subsidiaryTotal stockholders? equity (deficit) $ 403,370 $ (16,028 )Total liabilities, redeemable convertiblepreferred stock and stockholders? equity $ 454,320 $ 219,979 (deficit)

Cytek Biosciences, Inc.Reconciliation of GAAP to Non-GAAP Measures

Three Month Ended Nine Month Ended(Inthousands, September 30, September 30, September 30, September 30,except per 2021 2020 2021 2020shareamounts)GAAP gross 21,386 15,616 55,617 32,261 profitStock-based 559 38 791 107 compensationNon-GAAP 21,945 15,654 56,408 32,368 gross profit Non-GAAPgross profit 64 % 62 % 63 % 52 %% GAAPoperating 18,314 8,905 47,602 26,478 expensesStock-based (1,896 ) (88 ) (2,787 ) (233 )compensationNon-GAAPoperating 16,418 8,817 44,815 26,245 expenses 48 % 35 % 50 % 42 % GAAP incomefrom 3,072 6,711 8,015 5,783 operationsStock-based 2,455 126 3,578 340 compensationNon-GAAPincome from 5,527 6,837 11,593 6,123 operations GAAP net 1,595 6,540 4,367 13,812 incomeStock-based 2,455 126 3,578 340 compensationNon-GAAP net 4,050 6,666 7,945 14,152 income GAAP netincomeattributable 492 1,446 - 2,641 to commonstockholdersStock-based 2,455 126 3,578 340 compensationNon-GAAP netincomeattributable 2,947 1,572 3,578 2,981 to commonstockholders GAAP netincome pershare to $ - $ 0.05 $ - $ 0.09 commonstockholders,dilutedStock-basedcompensation $ 0.02 $ - $ 0.06 $ 0.01 per shareNon-GAAP netincome pershare to $ 0.02 $ 0.05 $ 0.06 $ 0.10 commonstockholders,diluted Averagesharesoutstandingforcalculation 113,637,377 31,058,757 62,095,275 30,763,586 of non-GAAPnet incomeper share(diluted)