Standard BioTools Inc. (NASDAQ:LAB) Q1 2024 Earnings Call Transcript

So, feeling really good about that. And as we recently announced, we added a second OEM relationship, Next Gen Diagnostics. We’re very excited about the prospect there. It won’t yield anything fast here, but in a few years, this will be a very nice growth and profit driver. And rest assured, we are working on additional OEM relationships. As I said, nothing there happens fast, but once they’re off and running, highly, highly accretive.

Paul Knight: Okay. And I guess, Jeff, my last question would be the $71 million cash payments, that includes, you said, $11 million of the share buyback?

Jeff Black: Yeah. Yeah. So, it’s $11 million in share buyback, $8 million in, we retired our Silicon Valley bank debt and then $30 million, $34 million in merger and there was an elevated amount of payments that we’re paying off year end accruals, which is pretty typical in the first quarter. So we think about our adjusted operating burn more in that $29 million, $30 million range.

Paul Knight: Okay. And kind of flat similar in 2Q?

Jeff Black: Yeah. I think that’s right. I mean, like I said, in terms of kind of normalized adjusted operating burn, yes. We do expect we’ll continue to have some merger-related cash payments, but nothing to the level that you saw in the first quarter.

Paul Knight: Okay. Thank you.

Operator: Thank you. And this concludes our question-and-answer session. I would like to return the conference to Michael Egholm for any closing comments.

Michael Egholm: Okay. Thank you, operator. I’ll close by once again thanking our team for their continued execution and dedication to our mission and to our investors for your continued support. I continue to be ever mindful of the work and challenges ahead, but remain more excited and confident in our ability to empower research to change patients’ lives and, in turn, create value for our stakeholders. Stay tuned for future updates. We look forward to connecting with many of you at the upcoming Jefferies, Cowen and Scotiabank conferences in June. And I’ll now turn the call over to the operator to conclude the call.

Operator: Yes. Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your phone lines.