Singular Genomics Systems, Inc. (NASDAQ:OMIC) Q3 2023 Earnings Call Transcript

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And I think this core is a really good example of that. The ramp just instruments out for almost a year, and it really took a full nine months plus for them to ramp up and get to a point where they have multiple PI putting experiments on the instrument on a routine basis. So it’s very encouraging to see. There are a number of core labs that we currently have as customers and others in the queue that have similar types of customer bases. Meaning, they’re high-volume cores where there’s a ton of usage, multiple sequencers. So I think it’s an encouraging sign, but it also, again, speaks to the fact that it is taking time. This was an early adopter. Somebody very support of the system, an advocate for the system, it still took a full nine months plus to get to the point where it’s at this pull through.

So — and most of our install base has been only out for a few months. So it’s still — we’re still seeing the ramp occur.

John Sourbeer: Got it. With t he focus — increased focus here on the G4 launch with the cost cutting, I guess, any update on the PX and are you still moving forward on that program?

Drew Spaventa: Yes, we’re moving forward with spatial. We’ve been firm that we think there’s a huge opportunity to leverage our sequencing technology and a lot of the method development we’ve been working on for now close to five years, and it’s something we’re continuing to be very excited about. We’re in the middle of a TAP program right now, Technology Access Program, where we’re doing sample testing in house and working with some of the key academic institutions in the world to do new things using sequencing of the readout in . We plan to have more information on how we plan to bring that forward and realize that value for the company, for the customers, and for our stockholders at the beginning of 2024. So it’s something we’re actively working on, full plan to share quite yet.

John Sourbeer: On the orders that have kind of dropped out of the sales funnel, I guess just a clarification there. Have you actually seen any cancellations there that might have actually moved into a backlog or a re these just broader within the different groups of the sales funnel?

Drew Spaventa: I don’t think we’ve seen any — Dalen, w e haven’t seen any cancellations. What we’re seeing is, if we have four different levels in our sales funnel that advances down at various stages, we’re just seeing where — at the middle of that funnel, where it goes from an evaluation or getting into sample testing or once the samples are tested, getting into a PO. We’re just not seeing quite the movement through that w e would expect as kind of getting clogged and stuck in the middle. And again, I think, we’re really thinking about all the different ways we can address it. But it’s not that people are backing out, i t’s more just trying to get from should party here that wants a sequencer, but there’s a budget constraint or they want to wait for whatever reason. How do we advance those forward and reduce any barriers to get them to move forward to take a system and start using it.

Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.

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