Alpha Teknova, Inc. (NASDAQ:TKNO) Q2 2023 Earnings Call Transcript

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Stephen Gunstream: Yeah, yeah, I don’t think there are fewer customers. I think we’re getting smaller orders or delays mostly and it’s a combination of both. I mean some customers that use to order seven figures last year are still dedicated to using Teknova for their builds. But they’re talking about small six figures now for this year, instead, of 70 figure type of things. So, that is that is the primary piece and we do have some customers that have planned that originally, they would be like a Q3 order, Q4 delivery or Q2 order Q3 delivery that have gone out one or two quarters, right? And I think, even, they are not sure about the timing of when they are going to exactly need those based on their own capital constraints. So, that’s what we’re seeing. I mean, the excitement is there. And it’s not like we’re losing customers. It’s really very much a market dynamic.

Jacob John : Got it. Then that’s really helpful. Thanks for Stephen. And then, we haven’t talked about AAV tech in the Q&A. So maybe a question on that. Just one, how has the initial reception been? and then two, can you talk about initial launches from here? It sounds like two more this year. But how many more potentially beyond that? And then also, if you just remind us kind of how we should think about the revenue contribution from this? And I’ll leave it there. Thank you.

Stephen Gunstream: Yeah. Great, I’ll start with the revenue contribution. I mean, obviously the products we’re selling now I mean, this AAV tech buffer screening kits is relatively insignificant to the overall business, because the whole point of the screening kit is get customers to try out a set of buffers that we know are going to work for them to help on that polishing step where they separate empty from full capsids. And then, get them into the right reagent that then they can scale up through the process, development and into the clinical trial. So, this is a long-term strategy here that will then play out over overtime. And allows us to kind of engage with them and get them into these trials faster than they would otherwise be able to do so.

So, the revenue kind of reason there is, is relatively small, but the portfolio itself is important to make as broad as possible, right? So we want to support all of their production for AAV from end-to-end and across many serotypes. So, yes, we have two out now. We plan to have two out again by the end of the year, two more and we will continue to go through, I think there’s probably 10 or 11 serotypes, but of which four or five of the most popular, which we’re kind of knocking out at the moment. And then, we launched this other suite of reagents that are going to make it. So, and so, people are making their own standard reagent for lysis or purification or PFF, they can just buy our off-the-shelf reagents. And we will continue to build out that portfolio throughout the rest of the year.

So that they can be kind of a – it can be kind of a One Stop Shop for them as they start going down that process development, piece and capture more dollar share as they move into the clinical trials. So, again, altogether, maybe over time they will add up to be a decent amount of revenue in the early stages. But certainly as these go into clinical trials, that’s where we’ll see the biggest uptick.

Jacob John : Got it. Thanks for taking the questions.

Operator: Thank you, as I’m showing no further questions in the queue at this time, this concludes today’s program. Thank you all for participating. You may now disconnect

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