Q1 2021 Quotient Ltd Earnings Call
Ladies and gentlemen, thank you for standing by the quotient Limited conference call will begin shortly.
Once again, thank you for standby fees continue to hold quotient limited program will begin momentarily.
[music].
At this time all participants are in a listen only mode. A question answer session will follow the formal presentation. If anyone should acquire operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I'd now like to turn the conference over to your host Mr., Peter Beeler, Chief Financial Officer for quotient limited. Thank you you may begin.
Thank you Melissa.
Good morning, everyone and welcome to cautious when it comes to school well first quarter fiscal year 2021.
Joining me today Strongbox, Chief Executive Officer of course.
Today's conference course, being broadcast licensing audio webcast a replay of the conference call will be available later today.
He was W quotient vehicles cool.
During this call course, we'll be making forward looking statements, including guidance. The projections. After Q2 operating results I'd expect the development of commercialization timeline.
Because such statements deal what's your trip <unk> actual results may differ materially from those projected it to forward looking statements.
Additional information concerning factors that could cause actual results to differ materially.
Forward looking statements have you called it courses filings with the U.S. Securities Exchange Commission as well.
Really.
Forward looking statements, including guidance is protection provided joined as cool about it only as of today. Today's date of course it assumes no obligation to publicly update these forward looking statements.
Well, Scott I'd like to try to quell which of course, its chief Executive officer thoughts about.
Thanks, Peter and good morning, everyone. During my remarks, obviously golf the significant goldcrest, we have made during the first quarter fiscal year 2021, I've used the IP into Threeq target area first I would like to provide updates on the call. We'd 19, all Peabody taste, followed by more like well tangible.
Well publications and last but not leave enough that you don't contribution diagnostics.
Of course, we have all saying that thesis and sit at the time.
But be the access with the palm they make any big core time, we developed a high quality quite nicely and I'll be body taste, there's more CE marks on me personally almost the same sensitivity and I do not want equal size. They said piece, but the hope like you know what might be.
I'm very pleased that the high performance of the taste high speed of equaling from why do independent external studies in Madrid, Spain.
Hey, not Perry problems.
The studies concluded that the important part I mean, the specificity was up 99.8% and possible thing that's basically.
We of course Hughes. He covers testing program that includes the outside laboratories in both France, and Spain working be for the life clinical samples.
<unk> food and deliberate it's the technical these side of our taste, including the at each and they're not utilized in all my career.
I'm sorry resolved, we believe we have one of the best in class product. So the market Fiftyth Expos hygiene and I G.M. people in see all my last month update through major Blucora.
Oh, what taste is highly sensitive and can do they called the bodies Betty early into Seattle Conversant growth is 87 days false positive Pcr taste.
In addition, we volumes pain corporate customer contracts across Europe, and the U.S. photovoltaic squeeze Nike on the body taste.
All of these meaningful commercial airports and only three months off the stopping to work on the taste itself.
This level off these past and signing off the contracts to be cool school two things from the flexibility in Kabul for the platform in our R&D organization second that's costing about Eagle boutique already the week technology into their lab based on the very high performance characteristics.
Be comedy case, a previously that we think that's what they call. It. She is probably couple will be on confusion diagnostics.
This will school food they stay off the development off the coast Nike and I'll be body type two copies sea lice. All these dromomania told me that I see no platform, we decided to walk celebrate a work in the area. Although they felt fusion magazine and be I'm always active discussions to explore major development opportunities for <unk> sake.
They take shouldn't be aligned reaching out to these keep play you used to explore potential collaborations opportunities to help guide for the development will be like small stick products designed specifically to leverage the technical and operational benefits of the mosaic system and.
Thanks to market products in all diagnostics area.
Regarding the transfusion diagnostic menu.
He likes it did off the pandemic related to distinctions because he stock what we'll see field trials.
In Europe 40, its bombed at equal to hematology My Corey that trials are poker anything else plan and we anticipate that we can file for CE Mark in Q4 collectively of Twentytwenty.
The comedy cases earlier this year, that's obviously paid as a delay on old field trials for one quarter, which we can now come from for Europe, but Unfortunately field trial activities in the U.S. Hospital in path you took them they make it related circumstance.
We therefore cannot stock feel ties and expect these so called the late in the U.S. based on the information on behalf of able to date.
As far as it relates to the U.S. five 10-K, a pool for that will take installed base and each let's see if mike rate be expects to achieve <unk> before the end of the yet.
I would like to draw attention to the fact that Europe, if approximately 20 to 1 billion donations a year.
Lock tomorrow, because when compared to the U.S. reduce approximately 12 million donations for you.
Last but not least I'm very happy to report says we are fully back on flight in Switzerland seats me.
Everything internally is progressing as normal and we also did not see any slowdown you know the bike worsening of the agency sales due to the palm. They make in contrast delighted to report the strong April 2nd sales growth for the although by quotient business.
At least that I would like to tell me back to what Peter all the financial update.
Thank you from.
Fiscal first quarter product revenues were $8.9 billion, an increase of 9.2% from last year's first quarter.
Oh, my quotient sales for the quarter, our reported at $8.8 million a year over year increase of 7.9%.
Sales to OEM customers increased by 7.8% one direct to increased by 8.1 system.
Within OEM sales, we see a particularly strong increase it says to customers in the USA.
There was a one day Colgate 19 antibody test all reported a $111000.
50%, 69% devices are related to standing orders.
Gross national product sales were 39.3% into first quarter financial year, 2021, compared to 44.1% last year.
The deterioration is primarily due to the Colby they talked and related lower production levels at our manufacturing side and I didn't grow and therefore lower overhead absorption.
The first quarter, we recorded an operating loss of night quick $19.7 million compared with $84 million last year.
Operating expenses were $23.2 million, an increase of 1.2 million dollar over the prior year.
There's a marketing costs were $2.2 million decrease of 300000 dollar mainly due to lower travel cost.
Research and development expense were $11.4 million.
$200000 decrease year over year, driven by lower external spend that despite the restart <unk> age feels right.
General and administrative expenses were $9.5 million compared to $7.8 million. The prior year, an increase of $1.7 million driven by significantly increased legal costs related to the also arbitration.
Consulting fees increased insurance cost.
Gene day cost includes stock compensation expense, which decreased for $1.2 billion to $1 million.
The first quarter, depreciation and amortization were $2 million versus $3 million <unk>.
The decrease in depreciation due to assets. It is not that are now fully depreciated.
Net other expense was 5.2 billion approximately $7 million compared with $5.1 billion into first quarter last year.
Net other expense consists of interest expense of $5.9 million at the 200000 dollar foreign exchange gain compared to interest expense of $6.1 billion at the $1 million foreign exchange gain physical twentytwenty.
Overall I mean, that's all for the quarter were 25.4 billion dollar or 32 cents per ordinary share compared with $23.6 million or 36 cents per ordinary share the criteria this quarter.
Net cash used in operating activities totaled $24.8 million just this quarter.
It looks what's your 21 compared with $25.1 million deprived yes, those quotes.
Cash used in operations into first quarter include interest paid our outstanding debt.
When $10 million.
The use of cash decreased slightly despite higher operating expense due to lower increased working capital.
Capital expenditures are the first quarter fiscal 12 to 21 was 800000.
It's all this compared with $1.1 million into crazier the charts, you've heard a Catholic back after the first quarter fiscal threat to 21.
Related to the acquisition of Mosaiq instruments.
Moving to the balance sheet.
The little cash and short term investment at March 31st Twentytwenty were $94.5 million compared to 90.7 million one year ago.
An additional 9 million dollar of cash is how the districts that reserve accounts under the terms of the borrowing facility of $145 million, though is our facilities.
At March 31st accounts receivables totaled $6 million.
As we told the $21.3 billion.
Let's start sheet Isis increase compared to prior year.
Increase in accounts receivable is related to timing of customer payment.
Accreted inventory is related to more like.
We got another crude any lost in relation to the arbitration against also as we consider another favorable outcome is not probable.
Liabilities, including a 7% cumulative redeemable preference shares acquired by also 2050 potentially amounted to $20.7 million a choice. So just twentytwenty.
Moving to guidance.
Well Fitzco Twentytwenty, one we maintain our full year revenue from put up to about four oh by quotient reagent the range of 32 million to $34 million.
No milestone related other revenues are expected.
For the second quarter fiscal 2021 rig they expect sales of up I caution reagents between $7.5 million at $8 million.
CRO Qubic 19 antibody test, we're not in a position to provide any sales guidance due to the inherent uncertainties of this new markets.
Well they know full castle Kopin capital expenditures at the rate of $5 billion to $10 billion. The cashews. It operations of approximately five to 6 million darker month.
No guidance is provided operating loss given we have heard the unable to full cost was like revenues related to the Cobiz Nike antibody to.
With the cash position of $94.5 million at the end of June will be able to find its appropriations well into 2021.
Still in a position to full cost how much cost at Cobiz 19 antibody test will generate.
We will continue to want to our cash position very closely.
With that let me know true claw back to from.
Thank you Peter looking for but no I will dive into this we target areas once again.
I would like to shed upcoming plants on the Koby 19 antibody test followed by mosaics potentially new applications and finally I would view on what's to come in Dallas Houston diagnostic.
To start we expect the F.D.A. emergency use authorization for Cobiz 19, I'll be body taste in Mosaiq instrument soon.
We have to wait for two months to get that if you were assigned to our dossier compared to some of the other manufacturer.
You know we case the installment not yet at the a pool and therefore that if you include not only the thing, but also the instrument and the software.
Yes of course, the old question that if you would had these were all routine questions and we are waiting for the U.S. <unk>, it's important to be might that be equal. Nevertheless, find all 80 city U.S. cost the mcmullen trucks, and the instrument or sheep already.
No one knew how cobiz 19, I'll be body testing or would it won't why do we have observed so far acute study. The initial phase the focus has been more on pasting put the vital PC off testing, we anticipate however that leave your merchants of vaccines and better understanding of immunity Humpty body testing.
We likely become more prevalent.
We have 10 high potential cost somebody equipments to be a quick follow technology, we are very likely to coffee or potentially increase in demand.
In addition, we are currently developing a cobiz 19th semi quantitative antibody test to help clean it good guidance.
We expect to make it up a useful in the next few months quantification is important in view of the anticipated boxing launches.
Let's take if they provide a positive well make up the pretty solid let's say me quality safety for quantitative test provides more information about the quantity a bumpy body in the same but.
We know that certain concentration of anti body, but take a look to the spike I didn't relate to neutralizing antibody capability. Therefore above a certain concentration we know that these neutralizing antibody thought pricing and this will most likely be opposed to you that well be associated.
Some form of community.
If these type of state dot became begin to establish if vaccines and individual vaccinations our effective.
We understand that old tastes courtesy of the market qualitative states, but some provides relative strength of signal data. We believe that's a semi quantitative I'll say that we're working on is sustainable.
On top of that we also know that our excellent team of scientists were ahead of the game, maybe specifically the lake disadvantage and they antibodies to the spike protein, which we anticipate that most likely to be associated with neutralizing antibody sandboxing.
Evidence continues to emerge.
Hoping that the spike and each and it's the superior choice. According to our recently published at EEI study.
The alternative and it sounds like the nuclear Copsey causes an antibody response, which may decrease more rapidly over time and are therefore not to the ideal option when looking for neutralizing ability.
Oh, so many cases earlier this year, we have all with a significant number for the snow instruments to arrive in the next couple of months. This will allow us to response to easy leasing demand I, either for cobalt 19, antibody tasting and or to be a path for the upcoming launch of the first confusion the menu.
At the same time.
Our new applications, maybe one for the sake, the continental Fabiano pipeline and we are conducting feasibility assessment of specific microarray menu for the commercial boss may do see that's the way love immuno assay and molecular diagnostic microarray mean use for the central lab.
Regarding our upcoming constitution diagnostic activities after completion of he expounded IDH field trials submission for CE, Mark we anticipate the seat of the CE Mark by Q1 claim to the of Twentytwenty one.
If that we can begin selling the first powerful commercial combination in each last year and expand the Dai Ichi in Europe in Q1 color into your Twentytwenty you on.
The expanded IDH U.S. field trials are currently planned to be initiate the so what's the end of this calendar year or beginning of next year provided the U.S. situation will allow it.
We expect the U.S. if the eight five to 10-K up who <unk> all the initial as the as Mike or rate and mostly instrument before the end of colleague really afraid btwenty.
We aim to report interruptible VNB data for the expanded ssds and stocks that you're looking field trials before the end of the Columbia Twentytwenty.
In the U.S., we plan to stocks Dx bombed at Sds field trials. After the completion of the U.S. expanded high H. field trials.
Oh that being said I'm confident that quotient. These on the right track and its mission to transform confusion diagnostics and beyond.
And I'm very pleased to see how our program get increasing traction as Europe is getting back to normal following the looks down would you like to do Colby 90, and we are poised to continue to deliver consistently on our milestones.
<unk> increased momentum you know business and heightened that pools, although diagnostic we look forward to accelerating development plans and capitalizing on multiple opportunities that make themselves available to quotient.
With this I would like to hand over to my lease up to open the queuing <unk> session.
Thank you at this time will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad a confirmation Tony will indicate your line is in the question Q.
You mean press star to if you'd like to remove your question from the Q.
For participants using speaker kwitny, it may be necessary to pick up your handset before bringing this dark.
Our first question comes from the line of Josh Jennings with Cowen and company. Please proceed with your question.
Hi, good morning fronts, Peter Thanks for taking the questions.
Oh, So let me just started off good morning, I was hoping to start off on the mosaic cobot anybody testing I cited some revenues in the quarter or you recognizing revenue on the capital sales and then also just wanted to get a sense of where if you could provide just give us a sense of in the run rate.
Some of the centers that have mosaic installed in terms of their kobin interbody testing volumes either on a daily or weekly rate I know, there's probably wide bid region with the current customer base. It's still very early but maybe give us a sense of if you can have any any testing run rates that oh.
Airline centers.
So the called trucks, we have in place a lousy half a penny customer contracts and therapy to correct me, if I'm incorrect, but I think all of them affecting the price of thing for me into the console those Oh, we basically jobs.
Taste.
Now you know lumpy as light up on truck. They are you still have five two she brings to mind you have to install it or you have to trade and stuff, but they do the they do internal validation and benefits to our tasty.
So time gap between signing a contract and utilizing revenues, we think of equal parts. All my meaningful revenues is that makes the quarterly called but to what our cost of without telling US you know everybody was expecting a bigger on that on the body tasty Buffy These initial phase it was.
The more on a PCR tasting testing for the virus.
We do anticipate as I mentioned, the during my prepared remarks or that the need for antibody tasting Inc. These.
One vaccines are in clinical trials you need on the body test for that there's lots of succeeds become available and also to see you know whether that's working but these are the vaccination the necessary and so forth you can eat all the body testing for all that applications like epidemiological questions as well so I was I believe.
We believe anything that you have a the 10 instruments a at authorities are paying customer contracts are activated.
They do goal when or if it gets moving domain the demand increases we offer the best positioned to benefit from that.
Anything you would like that.
No I think you answered the question.
Great. Thanks for that and just wanted to dig into the system inventory or it's by our math you may have three systems left in inventory sounds like strat tests going to fill the your earlier order in the coming months Stratec was on an accelerated manufacturing timeline I think you've informed us on the.
Last earnings call, but can you just help us think about.
Any more details you give us on timing of when you'll have more systems or there is three systems left inventory and then.
Oh, I think that all systems, a core fleet dog in the field to pull the field trials.
Going to also be redeployed the.
Necessary and we mentioned the therapy means domains now we have paid Costa look on trucks I think you need about therapy needs to land. So all these things take cost of Ah first of all you want I put back off just in case something will happen.
On the older hence the yields at hospital, so rapidly indicated before they get more me to be bumpy body to think they may need to more he told me.
Oh I think you know he started several of these past it'd be fancy mobs.
At a pace and paying called truck and everything which is in the middle and basically all located at this moment.
And of course toy lists and more in so my thought coming very soon.
Got you and then just a follow up on Matt can you just talk about the funnel the demand funnel from customers that may have been setting mosaic for carbon antibody testing how's that shaping up and then how do you you know temper the that demand in this interim period before you get the next door and read from Strat Oh.
So it's a it's equal did all a a call make a four costs to you because our cost almost all the old themselves as he said he is the overall overall Elizabeth and they could be sentiment in the market for off the body testing a you know all these messages to be juggling around that but I do we still believe in my colleagues to the crew.
Additional five minutes, we get the traction, but nobody knows how much Oh contractually anyway, we are going to the.
That's a as we speak a two day, there's no the CD cost them, a who can be above are kinda before coffeyville failed have different about expectations or.
If expectations, but it's too early to tell I mean last time in the quarterly call I told you hopefully.
Rigs, we know more of a couple of we thought over and we still don't know more I think a next quarter I can give you a update that indicates.
We'll just be a good you know if I say something though.
Understood and just last question that we appreciate you give any update on the semi quantitative cobot 19 antibody test but.
You've talked historically about earlier sensitivity specificity holding up earlier than 14 days relative to your competitors and potentially even at seven days you have I must say I've never based has a strong.
Though.
Yeah, So the thing Theres no theres.
I was just cost saves is is there. It is there any opportunity to get a label change or a label would then them for seems sensitivity and specificity reach at an earlier time period, where is that not on that on the table. Thanks. So you know what drives view that's a seven days off this ER positive PC artist and that's it.
Secondly, significantly faster than the beef or some of the alternate because we couldn't do they didnt vary a bit very high sensitivity Bose I T G and H T. M. And then also in the meantime, if you look at the the tiles, we'd be for CE, marking the easy pins and they will awakening speed in France, we are looking.
Over thousand 500 thing, but we should be taste. It. So it's really a rock solid so it's really a great taste and I think because also more than lucky because we do you have some smart scientists in our team.
Going from an antigen or we have each can do you take the the FICA coffee in so we have such as such a high sensitivity and I'm sure that's going to be the right thing for <unk>.
For the future yeah for vaccines.
Ah checking the effectiveness of a buck scenes.
As my loves a deducting neutralize the neutralizing appealing.
Excellent so just to be clear so that's already within the labels as it could have been my misunderstanding seven these items you see a yet that's already in that and out death and also for the Americans to use organization. We have these seven days in there [noise].
For the same you'd want be safety won a than a that's that's off that change we have to beef up meet the again for CE Mark reach I think people ready for often the to tell you how long really taking the way, it's a multi equaled <unk>.
But it will be on additional CE, marking they'd be in traditionally you we are necessary for that.
I think <unk>.
It's it's mainly yourself, but that's all that change we'll be ready coffee that a couple of months, we do have a quantitative semi quantitative paced you cannot make it fully quantitative because there's no stand with yet to competitive.
At this excellent.
Great. Thanks, Thanks for taking all the questions.
In Q4, you into it.
Thank you. Our next question comes from the line of Brandon Couillard with Jefferies. Please proceed with your question.
Hi, Thanks, good morning.
Can you touch on why the FDA is now kind of tying the bites NK approval of the instrument and the first Sds microwave should this around the GE way and does that can be more visibility on the time why now that you have this is kind of been bundled together I'm just kind of curious about the process why that's that's certainly case I.
I think it's not a bundled together so the fyffes then capabilities domains that the in east lays the is a that goes on a popular right now.
And [noise] for the a emergency use authorization, we have a deeper than that they put a few words, if you get the emergency use oh utilization and let's say the crisis is all you have to pull it back and did you feel the like 10-K, a pool for later on so I think it's a they owe a into <unk>.
Thanks, and see if I think you only good thing here wave a them, having a luca instruments off their age the taste for the emergency use authorization they've they've had to look up the installed base already which will be a very good indicator for off what's happening with the five things take every off or we have one coffee that people get.
Also a fully confident that you get the emergency use authorization. It's just a question on time.
Also the contracts, we thought if you with a cost them if they know exactly where we stand they know exactly where we already this entire pro with it and how would I don't see it looks like and they felt like we are just a question of climate flight aside the cone truck, although we haven't had the way yet.
Gotcha, Okay any uptick this year I'm on the hyper care program or the number of labs, a that you've started up does that change at all and you've been able to regain access to those dinner labs in Europe at this point that I put that no hyper care side. So Romney now and I think we've attained oxy cost a little.
They don't Cobiz 19, or you don't need to have you don't need anymore or we may consider that will do for the U.S. when we get into the your west but do you all the hyper care face has been successfully completed.
The bank a we receive from cost a lot of Ah Bianca incorporating getting the future development. So that's completed.
It's really all about completing I'll detail infusion diagnostics feel causing the U.S. and then hopefully starting as soon as possibly the way.
As soon as the situation along with it so.
So hyper caffeine is finished in Europe.
Yes, Okay makes sense on your last point, there as far as being able to restart the U.S. still trials.
A function of just travel restrictions from Europe, and our though the three customers I think you mentioned first a reality testing in the U.S. He knows the thing that's clinical trial sites bear overlap there.
Yeah, it's a it's the old package, but also of course, a couple of this week since we cannot get Oh, what experts Oh.
Okay did all that started.
And so the expanded by age for the you for US Yeah, Hi, I indicated before that we will initiate the still what they look this calendar year.
Worst case, beginning of next year, but it really depends on weighing the U.S. situation is improving and often h.. We can do the exposure that yes, because I was timing what Steve hopefully a policy years ago wed be wanted to do it sequentially everything is now on hold.
Being opens up solidly we still have to do the age for instance that yes, yes.
Given the composite TV half a dozen with people with the so called for those trials.
Thank you.
Thank you. Our next question comes from the line Alison Dean with BTG. Please proceed with your question.
Hi, Thanks for taking the questions maybe on the antibody test find if you could elaborate a little bit on value proposition. There. Obviously your they take gaining good traction you talked about flexibility on the platform you talked about the sandy on capabilities et cetera, obviously, that's one of the character of.
<unk>.
But I was wondering are there other factors in terms of its a very competitive field you know there other systems out there and would you be able to comment on maybe here at cost advantage cost attached advantage. When you get on what they act maybe you could kind of tell because somebody out there.
Advantages.
Yeah of course, that's why I'm, just trying to think a it's a premium price for a premium products. The because it's really the goals then something that jumps off a sensitivity specificity in combination with your early C or conversion I think another benefit is that it is a dedicated slothful. So you can ramzi thousand micro raised the.
If you want to if you need to see you don't actually took off to a normal burke flow a like a being comparable to other the phone based on the platform and one of them is koby side Dean foods will fully dedicated high school.
<unk>.
If you start to instill mainly in the morning. It takes about 30 minutes. After everything is up and running and then you get that it takes to solve every 70 ttwenty four thick.
So it's really efficiency on the high throughput capabilities extremely high accuracy off the tested the early COO Conversant you saw the benefit you become than Ah so wouldn't be fun qualifications they'd be quantification, because there's no standup vehicles I mentioned before.
This will be an additional benefits and those that all but four clinical guidance once a science as COO and you know what kind or.
Levels do you need to look at what kind of antibodies do you need for community.
We'll have been clinically guy.
Great and Oh surprised I really appreciate you give you talked a bit more color in terms of what the utility 40, everybody test could be going forward, we'd love to hear more about our there you know thought in terms of how the antibody test will be utilized a obviously called.
Yeah unprecedented case here well there'd be more broad usage of anybody testing once you that seem to be helpful. I'm just kind of curious you know we don't necessarily feel how did the antibody timing associated with vaccines for other types of diseases that was kind of curious is there a kind of that thought process where.
There might be a little bit of shifting paradigm.
I guess edge.
I mean, you can tested or for you can use distasteful epidemiology of course, but you also can use it for composites and see your own that pharmaceutical companies, who are considering that as well then you need also antibody test things and I think we talked about vaccination.
And Oh, we also spoke about you know a I mean are doing an antibody test or to see a are you happy me that if that is established a that they provide community, but we have community on though.
I see a publication, but is this a KOL sites you know, we're getting a new why it was a learning about it I think it's kind of a logical profile that you taste for a sense of survivor dissolved PCR phase when you all the stand or how these are the color additives and works that behaves.
Nothing on the body pace will become a more important I think I've mentioned all the potential applications, we have for back from our cost them off.
And yeah confident it's a question of pilot a pretty shortly we'll see some subtraction and then we are there you got on location, we don't have to sheep anymore location to get stuff.
Great. Thank you and it just lastly from me you have you didn't add transfusion diagnostics you guys are less than nine months away nine <unk>, a little more I in terms of <unk>.
The competitive menu launch in Europe could you just remind us what the the early sales ramp could look like on he talked about the hyper care programs being completed successfully.
I'm not trying to get a sense of like what the sales ramp could look like how what the Tenbury I bet you know there might be available you know what the timing around okay.
Yeah, I mean, the good news for confusion diagnostic and I'll be lost one quarter in Europe to date, we lost the all the going to lose about two quarters into your way, but I've ever pent up.
Oh, we didn't didn't miss the steel paid to people say they also possible I think everybody had very difficult problems now than I think a tender.
So somehow be other company benefiting nahla now from that rethinking that you want people have the first powerful commercial combination if any of it really depends audits bobbing beefed up tendering process. That's already in Q1 normal because right now everything goes on ice.
I assume as soon as to situation or column style equal back to their old pass some of the tables will be available.
And then we have to participate into tend to be have to wait just 10 or they are they put on the do ancient here, though from a couple of months to worst case off to a year and the smaller comp is smaller laptops, how much more flexible.
And I'll see you know a almost topics they end up the cost the moves in Europe potentially cost a little these major confusion menu in Europe and in the U.S. They know what's already and they're looking for what it's a technology can do whatever flow and I think the good secret if the koby 19, a exercise theories so far off.
We'll go to laboratories, who didn't know quotient, who didn't know mosaic and had to pay a premium price the top notch product. It was no fall off in April, but it didnt take a long or to have old 10 customer called truck So fine.
So it was or easy for us to Colombians cost some of it. This is really a co pay the new technology and into a lot and he just discussions. We also this call, but a lot of interface from those central labs to use technology beyond Cobiz 90.
Okay, if you're getting the lead me to multi modality as you can do we want say bloody moved off they taste the more like a little taste or you don't have a policy whatever that is hopefully interesting for them, but we initiated the so yes. The very specific discussion so they need if cost. The most also be very large ones and the they want to looking.
To this technology can potentially to pull that work flow and what kind of cost of lifestyle.
My car raised be made up a lot for this field of centralized like Oh.
Oh strategy was always talks fusion M. B all the be off would have been claw SMA and then central lab and be Cobiz 19, there'll be all too cold.
This was not plant that way, but gave us a or your life check that exposure to it did adoptable do cost a little bit bracelet, yes. They do and that is that you already know interestingly this technology for applications in depth into lap as well.
But we still have hobbled SLAD fusion plasma central lab, we just accelerate that equal walking basically now weve central lab application because we wanted to use this momentum we have no.
If that answers your question.
Yes, great. Thank you so much.
Thank you, ladies and gentlemen that concludes our question and answer session I'll turn the floor back to Mr. Walker for any final comment.
Yes. Thank you every well everybody for joining also Lisa call today, and we look forward to updating you on the progress we expect to have made it by the time of our second quarter fiscal 2021 conference call. Thank you very much bye-bye and stay safe.
Thank you. This concludes todays conference you may disconnect. Your lines at this time. Thank you for your participation.