Q4 2021 Twist Bioscience Corp Earnings and to Discuss Acquisition of Abveris Inc Call

Good day welcome to Twist Biosciences fiscal 2021 fourth quarter and full-year financial results conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question and answer session. To ask a question during this session you need to press star then one on your touch-tone telephone.

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If anyone should require assistance during the conference, please press star then zero to reach an operator. As a reminder, this call is being recorded. I would like to turn the call over to Angela Bitting, SVP of corporate affairs and chief ESG officer. You may begin.

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Thank you, Michele. Good morning, everyone. I would like to thank all of you for joining us today for Twist Biosciences Conference call to review, our fiscal 2021 fourth quarter and full-year financial results and business progress. We issued our financial results release as well as the press release announcing we entered into an agreement to acquire at Abveris this morning, both of which are available at our website at www.TwistBioscience.com.

We issued our financial results release as well as the press release announcing we entered into an agreement to acquire at Arris. This morning, both of which are available at our website at www Dot twist Bioscience dotcom.

With me on today's call, our Doctor Emily Leproust, CEO and co-founder of Twist, and Jim Thorburn CFO of Twist. Emily will begin with a review of our recent progress on Twist businesses. Jim will report on our financial and operational performance. Emily will come back to discuss our upcoming milestones and direction and then we'll open the call for questions.

Emily will begin with a review of our recent progress on twist businesses.

Jim will report on our financial and operational performance.

He will come back to discuss our upcoming milestones and direction and then we'll open the call for questions.

As a reminder, this call is being recorded. The audio portion will be archived in the investors section of our website and will be available for two weeks. During today's presentation, we will make forward-looking statements within the meaning of the US Federal Securities Laws. Forward-looking statements generally relate to future events or future financial or operating performance.

The audio portion will be archived in the investors section of our website and will be available for two weeks.

During today's presentation, we will make forward looking statements within the meaning of the U S Federal Securities laws.

Forward looking statements generally relate to future events or future financial or operating performance.

Our expectations and beliefs regarding these matters may not materialize and actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to us as of the date hereof. And we cannot at this time predict the full extent of the ongoing impact of the COVID-19 pandemic, and any resulting business or economic impact. We disclaim any obligation to update any forward-looking statements, except as required by law. With that, I'll now turn the call over to our Chief Executive Officer, and co-founder Dr. Emily Leproust.

These risks include those set forth in the press release, we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission.

The forward looking statements in this presentation are based on information available to us as of the date hereof.

And we cannot at this time predict the full extent of the ongoing impact of the COVID-19, pandemic, and any resulting business or economic impact.

We disclaim any obligation to update any forward looking statements, except as required by law.

With that I'll now turn the call over to our Chief Executive Officer, and co founder Dr. Emily Let proust.

Thank you, Angela and good morning, everyone. Fiscal 2021 was a defining year for Twist, we diversified our [inaudible] business and expanded our customer base, while accelerating our [inaudible]. In parallel, we lead to Biopharma Company from sort of be it service provider in this business [segment] to a partner of choice. In data storage, we continued engineering progress and are working we can do you need that the storage alliance to build market awareness of these storage solution. We've moved from a product-specific focus towards moving applications across large and growing end market.

2021 was a defining year for twist, we diversified Oh did you.

Actually business and expanded our customer base, while accelerating you know Angie as Rubin.

In parallel we lead to Biopharma.

Company from sort of be it service provider in these business Friedman to a partner of choice.

Rich we continued engineering progress and are working we can do you need that the storage alliance to build market awareness of these little storage solution.

We've moved from a product specific focus towards moving applications across large and growing end market.

We've made some important announcements over the last two weeks and will take some time today to talk through the strategic direction of the company as well as how the individual pieces fit within our [overreaching] plan. Against the backdrop of a global pandemic, we reported record revenue of $132.3 million, an increase of 47% in 2020 and reported $159.5 million another increase of 37% over fiscal '21.

Oh, the individual P C C C.

Although all three clubs.

So against the backdrop of a global pandemic, we reported record revenue of $132 3 million, but also the yield.

It's a 47% almost two schools in 2020 and reported $150 million five and older.

<unk> an increase of 37.

Fiscal 'twenty one.

For the fourth quarter, we did tough comp against last year, where we had a single large order of $9 million, we reported revenue of $38 million and $45.2 million, an increase of 17% and 6% respectively. Diving into those specific businesses and factories Biopharma. As we announced the definitive agreements to acquire Adveris this month. Adveris is a privately held entity and discovery company focus on in vivo discovery using a novel mouse platform. That's conducted many discovery campaigns for partners with about 70% with the freedom.

Tough comp against last year, where we had a single large order off might be under those we reported revenue of $38 million and the older 45 2 million.

17, and $6 respectively.

Diving into those specific businesses and factories biopharma.

Once the definitive agreements with the.

Very small.

As a privately held entity and discovery company focus on in vivo discovery using a novel mouse platform. That's conducted many discovery campaigns football.

It was about 70% with the freedom.

Currently at 90 customers operating today on the shuttle series called them. We see at various complementing our synthetic antibody discovery capabilities very nicely. Following the acquisition, the animal based entity discovery method and antibody screening technology, with our own antibodies and optimization capabilities.

We see at various complementing Oh synthetic antibody discovery capabilities very nicely.

Clearly the acquisition debt.

Unbilled days antibody discovery methods in place.

Quintin technologies, we love them on our own antibodies could we end up.

Shouldn't capabilities.

Ultimately, there's an established customer base with fix adobe equivalent antibodies in clinical trials. The company has 35 [of these] and we'd continue to operate at Cornell and Boston following the acquisition. And we believe that in fiscal 2023 the business will be cashflow positive. Taking a step back to look at our over arching Biopharma capabilities.

The company has 35 I'm pleased and we'd continue to operate at Cornell and Boston following the acquisition.

And it would be that in fiscal 'twenty 'twenty three.

Business, we'd be careful.

Taking a step back to look at all will go upstream biopharma capabilities.

Following the integration of Adveris, we will have to be comfortable if I read this correctly approaches under one umbrella. And the first approach we are taking discovery libraries with twist as a competitive advantage through all DNA synthesis platform technology. We synthesize every sequences dialed, including only those funding in human or with that as well. And screening targets when get against these libraries can't generate robust anti body needs. Second, and this is all proceeds to generate antibodies from an annual immunized with a target and then all this thing and sequencing the resulting antibodies. [inaudible]

We will have to be comfortable if I read this correctly approaches.

One of them brought up.

And the first approach we are taking discovery libraries with twist as a competitive advantage through all DNA synthesis platform technology.

We synthesize every sequence you dialed, including only those funding in human or with that as well.

And screening targets when get against these libraries can't generate robust anti body needs.

Second and this is all proceeds to generate antibodies from an annual immunized with a target and then all this thing and sequencing the resulting antibodies that is the specialty at very plentiful.

We have until that into technology corporations with similar companies to leverage artificial intelligence and machine learning technology  to screen through antibody needs until we find an integrity that Bruce.

With the acquisition, Twist will have all three approaches offering a unique and comprehensive antibody discovery and optimization capability to our partner.

As with all internal antibody generation. In addition, we have products that she pulled the total discovery process, where do you go push can be used to identify targets and all MTO streams can be used to make people in love with it doesn't do any penny.

In addition, we have products that she pulled the total discovery process, where do you go push can be used to identify targets and all MTO streams can be used to make people in love with it doesn't do any penny.

Once it gets to notice an antibody lead Twist provides tools to develop the lead further who often by offering [inaudible] and moving all the way through the IgG propane. Excluding Biopharma, we've been working to advance our COVID-19 assets discovered through our proprietary Biopharma process. We've been working hard to put together a team of clinical development and commercialization expertise. And last week, we launched Ribena by Biotherapeutics and independent biopharmaceutical company. We license our lead bispecific antibody to treat COVID-19, and have committed to provide up to $10 million in initial funding.

Once it gets to notice an antibody lead Twist provides tools to develop the lead further who often by offering [inaudible] and moving all the way through the IgG propane. Excluding Biopharma, we've been working to advance our COVID-19 assets discovered through our proprietary Biopharma process. We've been working hard to put together a team of clinical development and commercialization expertise. And last week, we launched Ribena by Biotherapeutics and independent biopharmaceutical company. We license our lead bispecific antibody to treat COVID-19, and have committed to provide up to $10 million in initial funding.

With Jim Simpson fragrance and moving all the waste with the reason I just useful thing.

Excluding biopharma.

We've been working towards them so it could be 19th.

The Schofield swell appropriately. That process, we've been working hard to put together a team of clinical development and commercialization expertise. And last week, we launched Ribena by Biotherapeutics and independent biopharmaceutical company. We license our lead Bispecific antibody to treat COVID-19, and have committed to provide up to $10 million in initial funding.

That process, we've been working hard to put together a team of clinical development and commercialization expertise.

And last week, we launched Ribena by Biotherapeutics and independent biopharmaceutical company.

We license our lead Bispecific antibody to treat COVID-19, and have committed to provide up to $10 million in initial funding.

In addition, we've been lucky in that sense, it's up to five additional targets over the course of the next four years, each program subject to additional milestone payments and royalties. When there could be downside, but even that would be first in class. We do see the opportunity for each company I believe he's the one that's been tried I use is all by himself consume and two, could be the delivered subcutaneously, which may offer overall best in class molecule.

When there could be downside, but even that would be first in class.

You see the opportunity for you since I believe he's the one that's been tried I use is all by himself consume and two could be the delivered subcutaneously, which may also overall best in class molecule.

We made the need for therapeutics that effectively treat lung COVID-19 as well as antibody therapeutics at the broad neutralizing capabilities among the imaging by them. As people vaccination is far from complete and vaccine effectiveness unfortunately, it appears to be declining over time. There'll be some data on oral therapeutics with a permit. They typically need to be taken within five days of onset and gloves safety concerns that may not be seen until more what you're thinking. On a peer-reviewed publication of recently noted that antibody therapeutics also promised to provide long term protection for immunocompromised patients, we don't generate a robust immune responses with vaccines.

Treat lung COVID-19.

Well as antibody therapeutics at the broad neutralizing capabilities among the imaging by them.

As people vaccination is far from complete and vaccine effectiveness. Unfortunately, it appears to be declining overtime.

There'll be some data on oral therapeutics with a permit.

They typically need to be taken within five days of onset and gloves safety concerns that may not be seen until more what you're thinking.

Peer reviewed published.

Publication of recently noted that antibody therapeutics.

To provide long term protection for immunocompromised patients, we don't generate a robust immune responses with vaccines.

We believe this need space for antibody therapeutics in the treatment regimen. We expect Covid would become an endemic disease [inaudible]. We need the best test for watchful it could be that that would be used to put it in the hands of her team experience in clinical development and commercialization. And Scott you upside. <unk> equity appreciation potential milestone payments of over 100 million to at all. Mid single digit royalties on any commercial too.

We believe this need space for antibody therapeutics in the treatment regimen. We expect Covid would become an endemic disease [inaudible]. We need the best test for watchful it could be that that would be used to put it in the hands of her team experience in clinical development and commercialization. And Scott you upside. <unk> equity appreciation potential milestone payments of over 100 million to at all. Mid single digit royalties on any commercial too.

We expect Covid would become an endemic disease in Sydney that it'd be interesting.

We need the best test for watchful it could be that that would be used to put it in the hands of her team experience in clinical development and commercialization.

And Scott you upside.

<unk> equity appreciation potential milestone payments of over 100 million to at all.

Mid single digit royalties on any commercial too.

Whether or not it's fixed speaking clinical trial for a different type of in 2022 subject to receiving regulatory approval and to me although development hurdles.

These pins of sheets.

Our internal base on a few of minimizing risk.

The risks and quickly developing antibody with an improved pharmacological profile that hit somebody did you target.

We expect that approval that would be a vehicle for development of up to five additional number could be targets emerging from other biopharma telecom each of whom come with additional upfront milestone and royalty payments used to last week to participate in the upside of any of the five additional license antibodies Wild Snaky thing.

Bill went through external funding and an experienced management team.

So with the chickadee for Biopharma, we have a vision of what the platform can add to this industry. We have now built a base of 34 partners with 41 active and to complete the program.

We have now built a base of 34 partners with 41 active and to complete the program.

Of the 73 total programs 55 at microphone setting all royalties associated with them. By completing the acquisition of <unk>. We will have more customers and programs coming onboard. For revenue, we expect to have a twist, sometimes we need to be thinking 2022 pending the required approvals.

By completing the acquisition of <unk>.

We will have more customers and programs coming onboard. For revenue, we expect to have a twist, sometimes we need to be thinking 2022 pending the required approvals.

For revenue, we expect to have a twist, sometimes we need to be thinking 2022 pending the required approvals.

Turning to synthetic biology. We reported 14 Handoffs and revenues. $21 million, although it for the fourth quarter. Over the course of fiscal 'twenty, one and looking to fiscal 'twenty two. When you boil that all proclaimed that to enable us to capture more pharmaceutical and I think just money.

We reported 14 Handoffs and revenues.

$21 million, although it for the fourth quarter.

Over the course of fiscal 'twenty, one and looking to fiscal 'twenty two.

When you boil that all proclaimed that to enable us to capture more pharmaceutical and I think just money.

And address the requirements for the loss from those customers who make their own.

We believe the largest and most impactful application of synthetic biology from both a financial. Effective will be in health care, and we've seen that play out with you know Chris nothing. We have a growing number of Christie mentioned Miguel genes oligo pools and library. Customers use these products to link phenotype and genotype.

Effective will be in health care, and we've seen that play out with you know Chris nothing.

We have a growing number of Christie mentioned Miguel genes oligo pools and library.

Customers use these products to link phenotype and genotype.

To gain a deeper understanding of biology. New diagnostics and therapeutics. During the quarter, we saw some impact from the extra time every event, where we needed to shut down production for a short period of time.

New diagnostics and therapeutics.

During the quarter, we saw some impact from the extra time every event, where we needed to shut down production for a short period of time.

Doing QC, we did tell me the unwanted DNA sequences included analogy. None of the genes were shipped to catch the mills, but we did experience a delay in some gene older.

None of the genes were shipped to catch the mills, but we did experience a delay in some gene older.

But what happened to successful neutral, but it should be issue.

The resulting backlog within three weeks and still reported robust although unseen by you talking about you in the quarter.

With his extensive believe frequency months ago that we were able to reveal much more quickly and we believe that we have no identified the root cause.

Trivial interruptions interruption. You said that that liked it. Our musical additional capacity and dedicated machines, which well building currently in the factory of the future outside of Portland.

You said that that liked it.

Our musical additional capacity and dedicated machines, which well building currently in the factory of the future outside of Portland.

At the same time.

We have a path to significantly increase capacity at Dell headquarter in the Bay area. Sure we can meet increasing demand from August announced within the next 12 to 18 months. We recognize that we not only need to meet the ongoing increasing demand with this.

Sure we can meet increasing demand from August announced within the next 12 to 18 months.

We recognize that we not only need to meet the ongoing increasing demand with this.

Amy cell genes into them when lobs, you know deal alright today, we've kept me she can make approximately 45000 genes for months, Chris from them and engineered products.

We're building capacity and tell us how much the school of 80000 clonal genes per month, but you Simba and 19000 genes 10 months by April of 2022 to ensure that we continue to meet the needs of focus and that's when we bring them online. Online in 2022.

Online in 2022.

Turning to M. D. S. We reported revenues of 21 for me and do it off a record quarter, even against the company in 2020, where we shipped a single 90 under the ordeal. We launched several products to bolster our offering including exempt going home more. Confronted XOMA for them with best in class stuff on them.

We launched several products to bolster our offering including exempt going home more.

Confronted XOMA for them with best in class stuff on them.

Addition, we introduce all alliance panel products, which are kids with security company from key opinion leaders in their respective fields. Which we. This quarter, we have launched a robust clinical exam from the broad pan cancer panels. Building on our first panel the SNP panel with content from the Regeneron Genetics Center. We also announced plans to launch panels with simple Jim focused on rare diseases. What are the storage, we achieved a significant milestone in the past month designed commission storage a mixed program.

Which we.

This quarter, we have launched a robust clinical exam from the broad pan cancer panels.

Building on our first panel the SNP panel with content from the Regeneron Genetics Center.

We also announced plans to launch panels with simple Jim focused on rare diseases.

What are the storage, we achieved a significant milestone in the past month designed commission storage a mixed program.

You have to have dilution team came to twist, Tokyo and provided us with a set of DNA sequence to be sensitized onto one micron proof of concept chip in a single day.

The sequences with no children in advance and we passed that test with flying colors.

In addition, we come to them that we can synthesize DNA as individual funds under one microphone proof of concept. She please no crosstalk. All steel, though into a just insights. What are the critical technology demonstration that validates our ability to achieve smaller dimension. We have jumped in the design phase for the Alpha chip, which would be all sales food costs will be niche chip in the meantime, we will lay the groundwork for them to sign on the excess giftedness.

All steel, though into a just insights.

What are the critical technology demonstration that validates our ability to achieve smaller dimension.

We have jumped in the design phase for the Alpha chip, which would be all sales food costs will be niche chip in the meantime, we will lay the groundwork for them to sign on the excess giftedness.

And you know to Bill we hired different helmont produced yet twist to them digitally. Significant technology advances that we've made in that the threats. We're now focused on preparing for the excess Brook lunch laying the foundation for commercialization of the scripted unimportant storage solution. Sun will help you find out the commercial strategy. Leverage relationship.

Significant technology advances that we've made in that the threats. We're now focused on preparing for the excess Brook lunch laying the foundation for commercialization of the scripted unimportant storage solution.

Sun will help you find out the commercial strategy.

Leverage relationship.

Oh the carrier in storage to ensure we have the right product suite focused enough in the space.

At this time I'd like to turn the corner go to Jim to review, our financial results for the quarter.

Alright. Thank you, Emily. As Emily noted, we had another exciting and dynamic year as we continue to scale our platform and we closed out the year on a strong note. Revenue for the quarter was $38 million, a new record for Twist, which is a sequential growth of 9% and year on year growth of 17%. This brings our FY '21 revenue $232.3 million, a 47% increase from FY '20 and slightly above the top end of our guidance of [inaudible]. Orders were 45.2 million for the quarter. As sequential increase of 16% and 6% year over year. This takes our total orders for the year to approximately $159 million. Gross margin for the fourth quarter was 40.7% and our tour. For the year gross margin was 39% as compared to 32% in FY '20.

Alright. Thank you, Emily. As Emily noted, we had another exciting and dynamic year as we continue to scale our platform and we closed out the year on a strong note. Revenue for the quarter was $38 million, a new record for Twist, which is a sequential growth of 9% and year on year growth of 17%. This brings our FY '21 revenue $232.3 million, a 47% increase from FY '20 and slightly above the top end of our guidance of [inaudible]. Orders were 45.2 million for the quarter. As sequential increase of 16% and 6% year over year. This takes our total orders for the year to approximately $159 million. Gross margin for the fourth quarter was 40.7% and our tour. For the year gross margin was 39% as compared to 32% in FY '20.

Emily noted we had another exciting and dynamic here as we continue to scale our platform and we closed out the year on a strong note rhatany for quantum in respect to $8 million.

Iraq for twist, which is a sequential growth of 9%.

Year on year growth of 17%.

This brings our FY 'twenty, one revenue $232 3 million, a 47% increase from FY 'twenty and slightly above the top end of our guidance of 102900 catchy name for the year.

August was 45 point came after the quarter.

The increase of 16% and 6% year over year. This takes our total orders for the year was approximately $159 million. Gross margin for the fourth quarter was 45, 7% and our tour. For the year gross margin was 39% as compared to statutory percent in FY 'twenty.

Gross margin for the fourth quarter was 45, 7% and our tour.

For the year gross margin was 39% as compared to statutory percent in FY 'twenty.

We shipped approximately 2900 customers for the year and that's up from 2200 in FY '20 and we ended the year with cash and short term investments of approximately 478 million. Health care is now our largest segment and accounts for 54% of our business. With revenue of $71.2 million in FY '21, versus 14 million in FY '20. That's a 78% growth year on year, reflecting growth in Ngls, Biopharma and growing demand for our sand byproducts.

We shipped approximately 2900 customers for the year and that's up from 2200 in FY '20 and we ended the year with cash and short term investments of approximately 478 million. Health care is now our largest segment and accounts for 54% of our business. With revenue of $71.2 million in FY '21, versus 14 million in FY '20. That's a 78% growth year on year, reflecting growth in Ngls, Biopharma and growing demand for our sand byproducts.

Health care is now our largest segment and accounts for 54% of our business.

With revenue of $71 2 million in FY 'twenty, one versus 14 million in FY 'twenty.

That's a 78% growth year on year.

I can go off and Ngls, biopharma and growing demand for our sand byproducts.

Industrial chemicals revenue was $54.5 million in FY' 21 versus $29.1 million in FY '20. Even though we're operating in a pandemic, where many academic labs for impacted globally, our academic revenue was $25.3 million versus $19.6 million in FY '20, reflecting our continued focus on growing our long tail. Agricultural revenue was $1.3 million essentially flat with FY '20.

21 versus 'twenty.

$29 1 million in FY 'twenty.

Even though we're operating in a pandemic, where many academic labs for impacted globally.

Our academic revenue was $25 3 million versus $19 6 million in FY 'twenty, reflecting our continued focus on growing our long tail.

Agricultural revenue was $1 3 million essentially flat with FY 'twenty.

Now I'll provide more color on orders. We ended on a very strong note with [NGS] orders for the fourth quarter of $21 million. This brings our total NGF's arduously at approximately $76 million compared to $53 million in fiscal '20. Which is approximately 43% growth year on year from a high comp base we referenced earlier. This growth reinforces the robust and growing market opportunity. Our expanding product portfolio, investment our commercial organization, expanding our customer base with increased adoption and increasing eight [NGS] applications include games liquid biopsy MRD, RNA controls and clinical applications.

We ended on a very strong note with Ngls are hedged for the fourth quarter of $21 million.

This brings our total ngf's arduously at approximately $76 million compared to 53 million in fiscal 'twenty.

Which is approximately 43% growth year on year from a high comp base, we referenced earlier.

This growth reinforces the robust and growing market opportunity.

Bonding product portfolio.

Excellent and our commercial organization, expanding our customer base with increased adoption and increasing eight mgs applications include games liquid biopsy M D.

RNA in controls and clinical applications.

During the quarter we received orders from approximately 670 NGOs customers on this. And our top 10 accounts placed orders of approximately $10 million as compared to approximately $70 million for the top 10 in the previous quarter confirming we are seeing continued diversification of our customer footprint. The pipeline for larger opportunities continues to scale and we're now tracking 199 accounts and that's up from a 182 noted in our last earnings call.

Top 10 accounts placed orders of approximately $10 million as compared to approximately $70 million for the top 10 in the previous quarter confirming we are seeing continued diversification of our customer footprint.

Pipeline for larger opportunities continues to scale and we're now tracking 119 nine accounts and that's up from a 182 and noted in our last earnings call.

It's easier to have adopted Twist and that's an increase from 79 as we noted in our last quarter. By turning to Sundial. We saw robust growth in our sun by Argos, which includes genes, DNA preps, IGT libraries, and all the good pools, which rose to $20.1 million in the fourth quarter up from $15.7 million in the third quarter of FY '21. Which is a sequential growth of 28% and up from $16.1 million in the last quarter of fiscal '20 with health care segment being the major driver to growth.

Turning to sundial.

We saw robust growth in our sun by Argos, which includes genes.

Do you need perhaps IGT libraries, and all the good pools, which rose to $20 1 million in the fourth quarter up from $15 7 million in the third quarter of FY 'twenty one.

The sequential growth of 28% and up from $16 1 million in the last quarter of fiscal 'twenty was health care segment being the major driver to growth.

Now to Biopharma. We continue to scale, our Biopharma antibody discovery business. It was 11.6 million for the year. The growth of 123% compared to $5.2 million in fiscal '20. Orders in the fourth quarter were $3.4 million as we continued to build our pipeline of new and repeat customers. As noted earlier, we have 34 partners with folks who went out to programs of which 35 of milestones and royalties. Please note orders may not translate into revenue, but did provide a trend line for each product group. Now moving from orders to revenue.

We continue to scale, our biopharma antibody discovery business.

It was 11 6 million for the year.

The growth of 123% compared to $5 2 million in fiscal 'twenty.

August and the fourth quarter were $3 4 million as we continued to build our pipeline of new and repeat customers. As noted earlier, we have taken for partners with folks who went out to programs of which 35 of milestones and royalties.

Please note orders may not translate into revenue, but did provide a trend line for each product group.

They're moving from August to revenue.

As noted earlier revenue for the quarter was $38 million and brings our cumulative revenue for fiscal '21 to $132.3 million. Which is $19.1 million in fiscal '20, representing approximately 47% year over year growth. NGS product revenues fell to 21 4 million in Q4, a sequential growth of 14%.

Russia is $19 1 million in fiscal 'twenty, representing approximately 47% year over year growth.

<unk> product revenues fell to 21 4 million for the sequential growth of 14%.

Notable that we exceeded the $20.2 million for the same quarter of FY '20, which included the $90 million, we mentioned earlier. In Q4 of the top four customers accounted for approximately 50% of our revenue. For the year NGS revenue grew from $44 million in FY '20, just so to two 7 million, which is 65% growth year on year. Our sym bio product revenue for the quarter was approximately $14 million. And that's down sequentially from $14 three in the previous quarter due to the aforementioned production issue and seasonality in Europe.

Notable that we exceeded the $20.2 million for the same quarter of FY '20, which included the $90 million, we mentioned earlier. In Q4 of the top four customers accounted for approximately 50% of our revenue. For the year NGS revenue grew from $44 million in FY '20, just so to two 7 million, which is 65% growth year on year. Our sym bio product revenue for the quarter was approximately $14 million. And that's down sequentially from $14 three in the previous quarter due to the aforementioned production issue and seasonality in Europe.

In Q4 of the top four customers accounted for approximately 50% of our revenue.

For the year and GFS revenue grew from $44 million in FY 'twenty, just so to two 7 million, which is 65% growth year on year.

Our sym bio product revenue for the quarter was approximately $14 million a month.

And that's down sequentially from $14 three in the previous quarter due to the aforementioned production issue and seasonality in Europe.

Total annual spend by our revenue was $53 million compared to approximately $44 million or 20% growth year on year. Some of the highlights include shipping to 1900 and by our customers in FY '21 up from $15.19 in FY '21. NGS revenue was $59 million and that's an increase from $55.2 million in FY '20. We also shipped a record number of genes of approximately 372,000, and that's an increase from 338,000 we shipped in FY '20.

Some of the highlights include shipping to 19, hundreds and by our customers in FY 'twenty, one up from $15 19 in FY 'twenty.

<unk> revenue was $59 million and that's an increase from $55 2 million in FY 'twenty.

We also shipped a record number of genes of approximately 372000, and that's an increase from 330.

We shipped in FY 'twenty.

Now to Biopharma, our revenue for the quarter was approximately $2.6 million in full-year revenue was $7 million as compared to $2.4 million in FY '20 and during the year with service approximately 43 customers demonstrating the progress we're making and spending on platform. I will now briefly cover original progress for FY '21.

Yeah.

I will now briefly cover original progress for FY 'twenty one.

Our investments in building out our global commercial organization is reflected in our strong international growth. EMEA had another terrific year with FY21 revenue of $44.1 million versus $25.8 million and that's 71% growth year on year in EMEA now accounts for 33% of our worldwide business. [inaudible] had a great year in FY '21 revenue grew about 100% to $10.3 million from $5.1 million in FY '20. The US, which includes Americas revenue was $77.9 million for FY '21. That's compared to $59.2 million for FY '20.

EMEA.

Another terrific year with FY 'twenty, one revenue of $44 1 million versus $25 8 million and that 71% growth year on year in EMEA now accounts for 33% of our worldwide business.

Have a great year in FY 'twenty, one revenue grew about 100% to $10 3 million from $5 1 million in FY 'twenty.

The U S, which includes amounts as revenue was $77 9 million for FY 'twenty one.

That's a $59 2 million for FY 'twenty.

Moving down the P&L. Our gross margin for the quarter was approximately $15.5 million or 14.7% of revenue up from 40% in the prior quarter. Total year margin was approximately $51.7 million or 39% of revenues up from 10.2% in FY '20. Now to operating expenses. Our quarter for operating expenses, which includes R&D and SG&A was $57.7 million. R&D for the quarter was $19.4 million, which brings our total investments in R&D to $69.1 million for FY '21and that's up from 43 million in FY '20. The major contributors to our investments in R&D for compensation due to higher head count and its channel services, primarily associated with our investments in data storage and also increased investment in Biopharma.

Our gross margin.

Quarter was approximately $15 5 million or 14.7% of revenue up from 40% in the prior quarter.

Total year margin was approximately $51 7 million catch and 9% of revenues up from 10, 2% in FY 'twenty.

That's the operating expenses a quantum for operating expenses, which includes R&D and SG&A was $57 7 million.

R&D for the quarter was $19 4 million, which brings our total investments in R&D to $69 1 million for FY 'twenty, one and that's up from 43 million in FY 'twenty.

The major contributors to our investments in R&D for compensation due to higher head count and.

And its channel services, primarily associated with our investments in data storage and also increased investment in Biopharma.

Our SG&A in quarter, four was $38.2 million, which brings our SG&A for the year to 135.9 million as compared to $103.3 million in FY '20. The increases are primarily higher compensation as we continue to build out a commercial organization in free stock based compensation. Fees associated with the audit on investments and testing them material weaknesses and increased lease expenses as we expanded our footprint in San Francisco in the factory of the future of importance in the Portland area.

The increases are primarily higher compensation as we continue to build out a commercial organization.

Stock based compensation.

Fees associated with the audit on investments and testing them material weaknesses and increased lease expenses as we expanded our footprint in San Francisco in the factory of the future of importance in the Portland area.

Our net loss before taxes was two 1 million for quarter 4. Total loss for the year was $152 million, which includes stock-based compensation of 7 million and depreciation and amortization of $10 million. Capex for the year was 27 million, including 15 million for Wilsonville, mostly for equipment deposits on facility improvements.

Total loss for the year was $152 million, which includes stock based compensation of 7 million and depreciation and amortization of $10 million.

Capex for the year was 27 million, including 15 million for Wilsonville, mostly for equipment deposits on facility improvements.

Given the supply global supply chain challenges. We have strategically increased our amendment to its actually 2 million compared to $12 million at the end of fiscal 2020. We ended the year with cash and short term investments of approximately 478 million.

We have strategically increased our amendment to its actually 2 million compared to $12 million at the end of fiscal 2020.

We ended the year with cash and short term investments of approximately 478 million.

Now just some updates on our FY '22 guidance. As we noted, we saw strong bookings in quarter four and are optimistic on our opportunities. At the same time, there remains uncertainty associated with the pandemic. For FY '22, our revenue guidance in the range of $173 million to $181 million. And including the expected completion of the Adveris acquisition in quarter, one fiscal '22, our revenue guidance increases to $183 million to $193 million.

As we noted we saw strong bookings in quarter four and are optimistic on our opportunities at the same time, there remains uncertainty associated with the pandemic.

For FY 'twenty to our revenue guidance in the range of $173 million to $181 million.

And including the expected completion of the various acquisition in quarter, one fiscal 'twenty, two our revenue guidance increases to $183 million to $193 million.

[Sundial] revenue is estimated to be in the range of $67 million to $70 million as compared to approximately 53 million in fiscal '21. Our NGS guidance is estimated to be in the range of $94 million to $96 million as compared to approximately 73 million in fiscal '21. Biopharma revenue, including our anticipated adverse acquisition is estimated to be approximately 22 to 27 million as compared to approximately 7 million for fiscal '21.

<unk> guidance is estimated to be in the range of $94 million to $96 million as compared to approximately 73 million in fiscal 'twenty one.

Biopharma revenue, including our anticipated adverse acquisition is estevan should be approximately 22 to 27 million as compared to approximately 7 million for fiscal 'twenty one.

For the first quarter, we're projecting revenue in the range of 37% to 39 which we believe is prudent guidance, reflecting the upcoming holiday shutdowns in Europe, COVID pressures and the impact of the production issue we discussed earlier on the call. Our fiscal '22 gross margin projection ranges from 35% to 37%, which reflects the costs associated with our wilsonville wrap up. Excluding these costs, gross margin would be 42% to 44%.

Our fiscal 'twenty, two gross margin projection ranges from five to 5% to 7%, which reflects the costs associated with our wilsonville wrap up.

Excluding these costs gross margin would be 42% to 44%.

Operating expenses, which includes R&D and SG&A are expected to be approximately 315 billion for fiscal '22 as compared to $205 million in fiscal '21. Reflecting increased investments in biopharma pumps influx familiar data storage 20 million, our commercial organization 20 million.

Reflecting increased investments in biopharma pumps influx familiar data storage 20 million, our commercial organization 20 million.

Portland, Opex startup costs of $10 million, plus those higher stock based comp depreciation. Our R&D expenses for the project to be of course at $113 million up from $69 million, primarily due to investments in data storage and biopharma. Our net loss guidance for the year expected to be approximately $215 million.

Our R&D expenses for the project to be of course at $113 million up from $69 million, primarily due to investments in data storage and biopharma.

Our net loss guidance for the year expected to be approximately $215 million.

Stock based comp is projected to be approximately 47 million and depreciation are expected to be $13 million. Our capex for FY <unk>. 'twenty two is protective gear. To $19 million was approximately $75 million investment in Wilsonville.

Our capex for FY <unk>.

'twenty two is protective gear.

To $19 million was approximately $75 million investment in Wilsonville.

In summary, we'd like to thank all of the twisters for delivering another terrific quarter. We had another exceptional year continuing to execute on our strategy. Enjoying broad demand from our customer base, and we're significantly stepping up our investment as with some cases tap into new revenue streams. With that I'll now turn the call back to Emily.

Yes.

We had another exceptional year continuing to execute on our strategy.

Enjoying broad demand from our customer base, and we're significantly stepping up our investment as with some cases tap into new revenue streams.

With that I'll now turn the call back to Emily.

Thank you thank you Jim. We accomplished a tremendous amount in fiscal 2021 lease execution across all areas of the business. The execution of it he didn't think he can't put them into growth and give somebody a creation cost.

We accomplished a tremendous amount in fiscal 2021 lease execution across all areas of the business.

The execution of it he didn't think he can't put them into growth and give somebody a creation cost.

Yes. Continue to see huge opportunities ahead for both markets. With the recent strategic transactions with ribbon on risks, we're well positioned to accelerate our biopharma is ethical.

Continue to see huge opportunities ahead for both markets.

With the recent strategic transactions with ribbon on risks, we're well positioned to accelerate our biopharma is ethical.

The search the engineering accomplishments, we have achieved to date to this digital commercial planning and market introduction.

While these four business areas.

It was very different market opportunities each relies on us on. When the silicon based DNA synthesis platform. <unk> remains at the core of our competitive differentiation and to Chris. Looking ahead fiscal '22 will be a year focused on growing market share.

When the silicon based DNA synthesis platform.

<unk> remains at the core of our competitive differentiation and to Chris.

Looking ahead fiscal 'twenty, two we too will be a year focused on growing market share.

And for future success. Different biology, we plan to continue to build our business and extend our customer base, we expect to launch commercially. Pharmaceutical and biotech customer base billing on positive feedback from our early access customers.

Different biology, we plan to continue to build our business and extend our customer base, we expect to launch commercially.

Pharmaceutical and biotech customer base billing on positive feedback from our early access customers.

We remain focused on bringing up the effect of the future to reduce turnaround time, especially fortunate. We've been even really begin to see the benefits of reduced demand and adoption for casinos. And once they make their own Guinea in fiscal year 2023. Puns, yes, we expect to continue to grow revenues. From our existing products, while extending our capabilities around R&D and library preparation. Expect who don't get tweaked defined library professional truck, where clients would be IGN transaction discount idea.

We've been even really begin to see the benefits of reduced demand and adoption for casinos.

And once they make their own Guinea in fiscal year 2023.

Puns, yes, we expect to continue to grow revenues.

From our existing products, while extending our capabilities around R&D and library preparation.

Expect who don't get tweaked defined library professional truck, where clients would be IGN transaction discount idea.

We intend to expand our customer base for both Smith Macquarie conversions and I am tunnel. For Biopharma, we look forward to seeing our first company and I think in 2022.

For Biopharma, we look forward to seeing our first company and I think in 2022.

We think the appropriate clearances. In addition, we intend to sign additional partnerships and at programs as well as supposed to the opportunities to participate in a greater show well at a rapid clinical advancement.

We expect to out license at least going to school of antibody by mid calendar 2022. Towards the end of the storage, we intend to continue to drive to early access customers in pilot production. We will continue to execute on the IHOP has missed program milestones. An activity advanced market solution for this new storage medium income so you need a desk originally. With that let's open the call for questions.

Towards the end of the storage, we intend to continue to drive to early access customers in pilot production. So we.

We will continue to execute on the IHOP has missed program milestones.

And this and that could be had been smucker position for this new storage medium income so you need a desk originally.

With that let's open the call for questions appraisal.

As a reminder to ask a question, please press star then one. If your question has been answered and you'd like to remove yourself from the queue press the pound key. Our first question comes from Dan Brennan with Cowen. Your line is open.

If your question has been answered and you'd like to remove yourself from the Q press the pound key.

Our first question comes from Dan Brennan with Cowen Your line is open.

Great. Thanks. Thanks for the questions guys, maybe just first one just to start on the impact from the problem cited for sudden buying when the court did you quantify how much that contributed and is there anything baked in within your fiscal '22 guidance from that? Jumping out maybe give me a sense, yeah, no, no, we didn't quantify the impact in 2021. We did note that worked really well finished very strong books revenue and order for the first quarter.

First one just to start on the impact from the problem cited for sudden buying when the court did you quantify how much that contributed and is there anything baked in within your fiscal 'twenty two guidance from them.

Uh huh.

Yeah.

Jumping out maybe give me a sense yeah no no we didn't quantify the impact in 2021 we didnt notice that Oh, we did note that worked really well.

Finished very strong books revenue and although for the first quarter.

And and the headwinds from from. This this issue were included. In the Q1 guidance. Fiscal 'twenty two guidance.

This this issue were included.

In the Q1 guidance.

Fiscal 'twenty two guidance.

Got it Okay, and then maybe on a acquisition.

It looks like.

Around kind of come marine.

Dollars of revenue kind of baked in I guess, maybe first question is how do we think about kind of can you can you give us a sense of the growth rate of that business. In particular, you know how do we think about the go forward I know you've kind of given any sense for fiscal 'twenty, two but any any sense on Tom could you give a little more color on the customers that they.

You have and you know the outlook beyond fiscal 'twenty, two and then related to that is there any conflict because you internalize their technology, you know given that twisted looking to develop its own antibodies is there any risk or from.

From their own customers that you know they view it bears no competing with them.

So I'll stop and stuff. It was the first part of your question then.

And the second part and I'll, let Jim answer the first stop as far as the competition no actually it's very synergistic and the use of illegal and into approach, which are generic anti body that needs to be.

Humanized until that goes directly to the to the Swiss platform.

They are some some congress that don't have.

Don't generate immune response, even in the hyper immune amounts of death. So that's that's good for tweaks approach with gifts to move that want to maximize their <unk>.

He tried them so they do both approaches in parallel.

It's really it really adds as it is.

The complementarity in and.

Between enabled both guest wanted to build on each other.

And be synergistic.

You want to comment on the financial question.

Yeah Saddam yeah.

Milly and reflects roughly about 10 months revenue. This year, we obviously working through the integration obviously optimistic.

We anticipate seeing significant revenue growth in that business. So right now we're estimating roughly about a 13% annualized growth from that base, but obviously update that.

Do you need to.

Develop the business with a terrific team firm.

One of the advantages, we're adding customers and roughly 90 customers.

The expanded footprint for us and by organization as well and in this world, where it's tough to get talent, we're bringing.

Bringing in some some terrific our various team a highly talented and really complements what we're doing with our biopharma and bio business.

Great and then maybe a final one just on M. G asking could you speak through the fiscal 2022 guidance maybe some.

Quick and Patriot.

You know if if we were to look back in four months and that number to be higher.

What are the key levers are included in that I'd be interested to find out what kind of how liquid biopsy.

Impacting our outlook for 2022.

Yeah, I mean, the ended on a strong note bookings for nearly $22 million a number of customers. We're tracking a large number of customers in our pipeline staying super it's almost just under 200 now.

Definitely seeing opportunities.

With biopsy.

One thing I'll have a chance to MRV.

We launched or Exxon as Emily mentioned, so were expanding our product portfolio.

And right now we feel were maintained.

Guidance for the fiscal 'twenty two.

Our goal is to continue to invest in commercial organization. So you tend to get White glove service.

We can't expand the product portfolio the increase in R&D. So we're.

We're optimistic in terms of the long term opportunity here and feel well positioned to work with large customers.

Great great. Thank you.

Okay.

Our next question comes from Tycho Peterson with Jpmorgan. Your line is open.

Hey, good morning, I'm going to start with Wilsonville I, just wanted to confirm youre reaffirming the kind of mid year 'twenty two target to open that up to slide 2000.

22, and then.

And as we think about capacity there I guess I mean, you're kind of a short cycle, so you're not necessarily pre booking capacity at this point, but how do we think about your ability to kind of.

Scale that capacity and in Jim on margins I know, you're talking about 35% to 37% corporate overall, how do we think about the margin impact as the year progressed. This round wilsonville as that capacity gets it gets up and running.

Yeah. So good question on bringing out Wilsonville.

We're starting.

The initial ramp around.

Fourth quarter.

If you step back the.

The overall impact for Wilsonville Im estimating dollar impact for the year was $25 million roughly about $10 million in our Oh pace with G&A.

Estimating towards the backend of the year, we can help out approximately $15 million objecting to $15 million as we grandfathered facility. So that's been an impact.

Q4.

But if you step back and you just normalize the margin or in other parts of it to market for.

The 4% range I mean, our goal is to Wilsonville, we see the opportunity to be able to leverage pricing as well as we address the foster genes.

So our goal is to scale that business as quickly as possible. That's why we're investing in the commercial organization.

We've made a lot of early investments in terms of the capital tools are starting to hire and as you can.

For me the conference call.

We are bidding also additional capacity in San Francisco.

We're very bullish in terms of numbers and by our customers.

Although the uncertainty around the pandemic.

Being prudent with our outlook.

Okay.

Helpful. Emily did.

Data storage you know nice to hear the milestone proof of concept you get ready for early access launch could.

Could you just talk about what's left from a technical perspective before commercial launch and then are there milestones we should be tracking for that business for 2022.

Yeah from a technical perspective.

Next step is to keep growing them in dimension. So last year, we guided that the DCF would have been one of my country working in and we do.

So the next step is to keep going down.

Crosstalk as.

As we mentioned is it is.

Is that.

The key the key.

Issue and now we've been able to.

Make it work for five micron and one of my comments.

Very confident that we.

We understand the physics, and chemistry, and how they relate to each other.

And so that's.

That's why we have.

We have the confidence to to mentioned that the next Super answer chip will be offshore.

Sure.

Commercial chip.

So we are in the design phase for the Alpha Chip makes next phase would be the production next phase after that would be the.

Debugging development.

<unk> of the chip and when that is done we'd be able to use it we've been kissed a mill.

Where are they similar to what happened this quarter was the Miss program coming to us, saying those other sequence I'd like to make.

The same thing we wouldn't have been resolved.

Just.

In terms of milestones.

It's really about getting the chip to work signing only early.

The excess kicked them out.

And as.

As we mentioned in the past the the customers that we focus on for the.

Our release because some of the.

Very disparate frankly to get onto a new storage medium and just to note that the if forgiving environment, we know that that no it's going to be the full schedule of when we launch <unk>.

But from a.

As important for the fifth she keeps doing interactions too.

Whereas an environment, where there is room for full bed controls and optimization of the process and to that extent different AMOLED is.

With that addition to the team to make that happen.

Great last one just on some of that business development updates I guess first on AD for risk do they get downstream economics, you mentioned six antibodies in the clinic. So should we think about that as being additive to kind of the milestones and royalties.

Nothing at this point at this point the classroom is entirely a fee for service.

As we as we combine.

Integrated PV is I think we will have opportunities potentially to.

Upsize the it couldn't make sure that we're going to gain.

And then how are you thinking about the opportunity for <unk> with the <unk>.

I mean, obviously, the antiviral data from Pfizer and Merck was pretty good around Covid. So how do you think about that in context of your monoclonal antibody opportunity and then you mentioned I think five non COVID-19 programs.

A risk longer term that revpar could be ultimately compete with some of your own development efforts on the therapeutic side.

No not the way we structured the business.

It's Uh huh.

It's been like that.

That's really what I would be working on the same target because as we all and <unk> and <unk>.

If they were a little differently.

The advantage of having stopping to go so it is very synergistic.

And the Kobe.

The assets are and then being able to be in the clinic in 2022, which is which is great for tweaks for Sui sometime body.

Great expense team.

And.

Two.

Syndicate the risk by.

I think that the work done at all.

Based on the funding of the symptom as we keep.

And upside opportunities through equity appreciation and a nice.

My sense on Wednesdays.

So it's a very much additive.

And the and the <unk>.

Very little risk of of.

Working on each of those.

Pete.

The way the structure of it.

Okay. One last one for Jim before I hop off you've got 465 million or so in cash in the balance sheet and the burden. This year, it's going to be about 300 million I think with a net loss in Capex can you just talk on how youre thinking about the balance sheet and potential needs to raise more capital.

Yeah, one and keep a strong balance sheet to pursue lots of opportunity for.

For the company going forward.

And as always.

San Francisco Scott.

Uh huh.

We're bringing up our wilsonville. This year, we're investing in data storage, we do see upside in terms of the growth in the business and as we evaluate our opportunities as I'll be making sure. We have a strong balance sheet to finance finance the growth in 2020 four.

Sounds good thank you.

Yep.

Our next question comes from Catherine Schulte with Baird. Your line is open.

Hey, Thanks for the questions I guess first maybe just going back to that production issue that you mentioned and what what was the root cause there did it impact all of your production and then you mentioned clearing the backlog in three weeks, but also called out that there would be an impact to send buyout revenue both in the fourth and first quarter. So you know when did they disrupt.

Okay and do you think you lost any customers differently to lease there.

Yeah. Thank you. Thank you for the question that's what the the issue happened.

Yes.

As you know.

Synthesizing genes, it's actually very difficult.

The many steps with our with the given what you said.

These steps are fellow self steps and there.

There was an issue in the combination of reagents and and hardware.

And.

Frankly, the issue was compounded by the fact that the fed was absolutely food.

The bulk of the issue is.

When you add capacity.

There's no extra hours in the day range twin fulfilling that.

You can use and kept it actually takes longer than it should.

To clear the backlog. So that's one of the reason why we are adding capacity.

In personal and ski school in the meantime to make sure that that Oh.

When programs do happen, we're able to catch up quickly and make it basically transparent on the customer.

From the customer looks like in terms of losing.

Losing just the mills.

Long term I don't I don't think there is.

The city or long term income impact, but it does.

Puts us a little bit on.

On the backside.

We as we.

Out of the knee.

He is a conservative guide for Q1.

No that hum.

We actually saw it the second time Gabe we've seen October.

Really helped us with even fly our understanding of the root cause and we believe now that it's totally eliminated them, it's hard to prove a negative until.

Only time will tell but.

We're very confident in our understanding of sensus, kidney and assuming what would happen and making sure it wont happen again.

Okay got it. Thank you for that color and then you talked about expecting to have the first just discovered antibody in the clinic in 'twenty two.

All the treatment from Russell R. What about on the partner side do you have any indication of how many of those 32 completed programs are advancing and when any of those could advance to the clinic.

So we don't have it doesn't fix EBV T D.

D D D D.

On the web they are.

<unk>.

We have no indication that the that the.

But then it's not meaningful.

As far as we know that they will.

And so.

We all do.

In the midst of this in future Oh, it's something we need to be in the kitchen. So I don't know if the COVID-19 antibodies would be the first ones.

But there seems to be the COVID-19 antibodies all the ones that we have.

No excellent visibility in them.

And at the same time, you can see that we report every quarter how many yet.

These programs are completed and the burden is increasing quite quite nicely and so was the increase in the book should the shots on goals.

For more multi center, but you can be clean.

Okay, and then last one for me if we could just maybe go back to Dan's question on India. Its revenue guidance for 'twenty two came in a little bit higher than where we were so that was great can you just parse out what you expect from existing customers ramping their business with you versus new customer wins just as they.

Trying to think about the visibility into that number.

So good question most of them most of the revenue ramp is going to come from new customers.

Acting as their assets.

Kris and volume.

Tests.

We do track Lee the pilot and validation.

Our revenues, but the bulk of our revenue comes from both in production and we'll expect that to be the same for fiscal 'twenty, two and that's what's baked into our forecast.

We don't breakout how much is pilot how much validation.

But with the growth of the number of customers Q4 bookings for orders and the types of assays were just signed them too we're feeling good about our revenue forecast for the year.

Alright, great. Thank you.

Our next question comes from Vijay Kumar with Evercore ISI. Your line is open.

Hey, guys congrats on the print and thanks for taking my question, let me see if I can ask 800 questions on the call to Jim.

Maybe starting with your revenue guidance here ex the acquisitions. The two guys that I think that the base revenues were 172 to 181, that's about a 30% to 38%.

Considering you guys just did.

Well north of 45% organic against the tough comp in fiscal 'twenty one.

Is that the you know mid thirty's or low to mid thirties, perhaps outcomes over there.

It seems like NTS growth of 30% against a 65% growth in fiscal 'twenty, one seems to be slowing down.

How much of this is conservatism versus hum versus.

Any any factors that perhaps you might be seeing them in the business.

Yes.

Absolutely the business business is going well we are.

Obviously still a pandemic you're seeing lockdowns begin to reappear in Europe.

We're always I'm Vijay we're all prudent in our guidance I want to be thoughtful.

The NDS business is going extremely well the number of large customers continues to scale larger scale, we're investing our commercial organization, we're launching new products and at the same time I want to be thoughtful in terms of the guidance.

Yes, so some major wins in our sales in terms of the market opportunity is really with a liquid biopsy I might be as an example.

Extremely talented team at twist in terms of innovating new products. So I think the we'll obviously update the guidance would go through the year, but right now we feel good about the ninth Fortunately six.

And and in addition to that I mean, the MTS market does contain too cool E. C sequencing costs coming down so I think there's good opportunity for us in FY 'twenty, two and FY.

Slide 23.

Yeah.

Speaking on guidance in the Q1 31.

That's sequentially flattish historically, you guys have out from now.

Last year in fiscal 'twenty, one if you adjust for the comps.

Timing of orders beginning were up sequentially.

So why is Q1 sequentially in Florida, and what kind of impact are you.

Baking in from the.

The manufacturing issue is that is that a factor in Q1 and should those revenues be recognized in the back half.

Well, there's there's a three issues first of all Europe is.

Higher proportion of our business revenue.

Revenue for Europe was about $44 million.

So it's scaled significantly from 25 million previous year, so the the European Chris.

Christmas vacation and shutdowns.

<unk> got higher impact.

And also we got to be realistic we are seeing spots of call. It pressure is around the globe, obviously some of that in Asia.

Reading, what's going on in Europe right now.

We're trying to calibrate the impacts of a production issue.

And our belief is that the guidance is prudent.

And the type of $7 million to $790 million range.

Understood.

One on.

Free cash flows your guidance for net loss of <unk> two milligram.

That's a massive step up from 150.

In our fiscal 'twenty, one what is driving this Jim I mean, that's that's a really big step up.

It looks like you guys have about 470 ish of cash on hand.

Is that enough for you guys to breakeven.

Breakeven on the cash flow side.

Where a couple of things, we're stepping up our investments in Biopharma.

You know the the overall opex are increasing from $205 million. This year was $315 million.

Hmm.

We're stepping up investment in Biopharma roughly $40 million.

Stepping up investments in data storage by $20 million.

Yeah Ali we're continuing to invest in our commercial organization I've had those.

On Wilsonville.

The Wilsonville investments.

In terms of the Capex is coming years call it.

$75 million, yes, we're deploying capital.

Finally capital because we really see the customer demands coming along in the future.

We've got a great team from innovating.

Customer base continues to scale. So we're looking at this as a long term opportunity to to invest and scale up in the marketplace.

Gotcha and then one last one your Biopharma guidance of <unk> 22 to 27 ex the acquisition right. We're looking at somewhere between 12 to 15 ish for the year.

That's a pretty healthy doubling up of Biopharma revenues Jim.

Is rebel arent biotherapeutics, a customer of yours, you know I know you have the equity stake.

And if it is how much of a contributor Arista.

What is wrong with Biopharma strength.

Yeah, there's nothing in that step up I'm assuming for MLR.

When the we have built up the investments in biopharma over the last year or so.

Seeing a lot of customers come back where young but 70 70 odd percent return rate and this is just based on that contain two to invest in the commercial organization invest in biopharma.

So you're seeing that step up in growth.

It was an enormous time for for antibodies and we've got the platform.

They're leveraging our DNA platform our sensors platform.

So we are seeing.

Significant opportunity, hence that's why it was a step up there.

Thanks, guys.

Okay.

Yes.

Our next question comes something to that.

C V Leerink your line is open.

Yeah Jim.

Thanks for taking the question.

Some bigger question here on Biopharma first we saw a revlon obviously prior to that you have invested into twists biopharma.

And now that merits. So just wondering you know given that you have all that goes in and a library of libraries, you have now diversified model with mouse model.

You have it seems like a very this is using Berkeley lights for cone selection and maybe you're getting some throughput there.

But if you could maybe just elaborate at this point in time, what else do you need for your Biopharma.

Biopharma capabilities and essentially antibody discovery capabilities.

Nation high throughput screening repertoire validation, maybe an expression and scale up maybe just walk us through what you need at this point or do you have all the components that you are seeking here to build a stronger biopharma antibody discovery business.

It's a great question I think we were pretty much as we need.

As I mentioned.

The three big avenues to discover.

The twist approach using a synthetic libraries.

And then my approach was though we have with adverse and then the machine learning AI approach, which we have a number of collaborations are ongoing so we have access to all three tools.

And we.

We intend that he was already optimized.

The pending the sequencing of the hit the Reformatting of the antibody.

Hi, good afternoon.

These improved troops lifting so where we are we were pretty much who sits in the.

The combination that we have is going to be very powerful.

We cannot so big comprehensive.

Set of suite to Augusta mill.

Okay. That's helpful. And then just I'll keep it to two on supply chain, Jim mentioned, a couple of things that things seem to be.

Holding well so far but just wanted to understand in terms of where we're hearing quite a bit about plastic plates and pipette tips and other products that might be used in you know twist products and <unk>.

Delivery of our products with multichannel type it in multiple places and multifamily type rates and things like that so maybe just help us understand is there anything that we need to keep in mind, there and broadly across supply chain. What are some of the things that you are looking at for thank you.

Well, we are we entered into the pandemic last year, we our strategy of building agile supply chain.

And.

We got a we got ahead of the curve.

Lee we're.

Vigilant in terms of any potential bottlenecks, we did increase our images that's $2 million.

It is interesting we did a tour of the facility recently and.

Feedback laws, while you guys have got lots of tips sitting around so.

We've done it so far we've done a good job.

Keeping ahead of the issues are.

Obviously, we're seeing demand increase.

We've.

We got terrific team and a supply chain that.

I've been a deliberate in terms of.

So it's just a matter of keep training through this.

Excuse me.

Got it thanks guys.

Yeah.

Our next question comes from Matt <unk> with William Blair. Your line is open.

Yeah, Hi, good morning, I, just wanted to ask again on gross margins in terms of pacing throughout the year. So I guess, just contemplating coming back from the backlog here in the fiscal first quarter and then factor the feature ramping later in the year can you just maybe help us with pacing for gross margins throughout the year.

Yeah, mainly I should bring.

On the taxes get sure.

Hmm.

The we are going to see increased fixed costs.

So we are looking at a total total spend for banks of the future.

It was roughly around $25 million.

That.

About 10 minutes millions of sustained Opex G&A.

About $14 million to $15 million roughly about $14 million actually is going to impact us in the second second half of the year.

With the.

The.

I think in terms of break it out between Q3 and Q4, it's about a 30% impact in Q3 of that $14 million and the rest hitting in Q4. So you can build those numbers into your model.

But maybe just step back.

Excluding.

The factory of the future we're targeting roughly are we're seeing margins the range of 40% to 44%.

As we get.

To the first half of the calendar year.

We'll give you more update on what that cost looks like see normalized margins.

Okay, and then you mentioned.

Some growing interest.

Within the health care segment for synthetic biology. So just curious if you could discuss that a bit more and then maybe somewhat relatedly just give us a sense.

From what Youre seeing in terms of longer and more complex genes in terms of the demand there.

Yeah. So in terms of the health care segment, yeah. So it is growing significantly.

In health care.

I mean, it's being in the area.

So it was seamless growth so what's driving that you get so the street three factors on the healthcare side.

You've got the big troughs in terms of NPS.

Gross in terms of Biopharma and then on the <unk> side. So we get lots of questions on the last earnings call. The sequential bookings declined from Q2 to Q3.

He knows the business did increase from Q3 to Q4, that's driven by predominantly the health care segment with <unk> bio and <unk>.

Terms of what does that mean in terms of genes and.

Jean <unk>.

Those tend to be shorter genes.

So we've seen a switch.

Switch all of our G&A activity from last.

Last year we.

Higher percentage, but it was longer genes I need more than 1.8 can be this year, if you're looking at one point it can be a non cornell genes are accounting for in the last two quarters, roughly 70% of our gene volume.

What's driving that.

Pharma business, what's driving that.

Yeah.

Okay I'll leave it there thanks.

Okay.

Our next question comes from Luca <unk> with Barclays. Your line is open.

Hello, everybody and thank you for taking my questions here just real quick did you guys call out the actual dollar value impact from the shutdown and sym bio and <unk> and what's expected in <unk>.

Look no no we didn't.

I can tell you just from us at a cost point of view. So it was roughly just under a million dollars.

Impacted us.

You too.

Mostly having to do reruns.

<unk>.

In Q1.

Let's see where we're still working through Q1 the biggest issue in Q1, it's just.

Europe's a higher share of the business, we've had shutdowns European vacations coming around Christmas.

And we're seeing some hotspots in Asia in terms of Covid.

At the same time, we're seeing significant demand coming in in terms of we had a really strong caution and auditors.

Yeah.

We'd rather be prudent at this time of year, we feel good about the growth rates.

Guidance.

And wanted to make sure that.

We calibrate dwell for quarter one.

Okay. That's it.

Helpful.

I guess as I'm thinking about 'twenty, two when we're thinking about the <unk> tools business.

Major upside driver I think to a lot of the way there are investors or thinking it's going to come from a liquid biopsy.

Can you give us a sense of how big that business is for you.

How we should think about either garden's, new tests coming into early 'twenty, two or the anchor Dx in China, how those kind of feed through.

Look we don't we don't breakout liquid biopsy.

Liquid biopsies.

A contributor.

We've got close to 200 large customers who are tracking.

Hmm.

We continue to to do well in terms of the number there but adopted although they've adopted do include liquid biopsy.

Our goal here is to build a broad platform.

Because it was seen more than just as liquid biopsy of those M. D are you seeing other NGL type applications.

That genomics acquisition.

Microarray two mgs conversion.

Cancel regeneron I'm coming back so so our goal here is to keep building the business in terms of number of customers. The number of applications, but obviously the liquid biopsy will contribute but we're not breaking out the liquid biopsy impact yeah.

Yeah, Okay, sorry, just trying to try to get it out of it.

[laughter].

Lastly on the R&D step up this is more of just kind of a longer term idea here. So you guys have the biopharma business. The DNA storage and then the rest of that your core business. That's looked at this the kind of the cash driver here. So is there give us a sense of how you bucket out that R&D step up.

That mostly go into the clinical trial work from Biopharma.

How is that also keeping abreast of the R&D spend for N. G. S tool. So that you guys can continue to accelerate that growth given it to you.

Smaller business, but it can be a lot bigger.

Yeah, I mean, so let's say you just stepping back looking I'm looking at the business. I mean, we are we are stepping up overall R&D.

And.

The Biopharma rough.

Roughly it will be.

We're introducing an additional $40 million biopharm around 20 million in data storage.

So that's that's what $60 million.

<unk> totaled 130.

So in terms of the core business.

Yeah.

We're investing substantially more than 20% of revenue in that core business.

And we will continue to keep keep investing in.

Our core business.

Because we are seeing.

Terrific opportunities in terms of N G E.

Right.

Also we are seeing.

Good opportunities in terms of investing and expanding the <unk> platform as.

As we start to launch our <unk>.

So.

I think I think we're bringing balance in terms of our overall investment in $130 million R&D with Biopharma often changes M. As highlighted in data storage, yes longer term, but it's becoming becoming more real.

Alright, thank you.

Yeah.

There are no further questions I will turn the call back over to Emily for any closing remarks.

Thank you very much children yesterday to close the call I want to definitely wish you a wonderful sense getting.

I'm, especially grateful for all the twisters with it to go the mixing in fiscal 'twenty, one and are already on to just thinking about the opportunities that lie ahead fluctuate since fiscal 2022. Thank you vintage.

This concludes the program and you may now disconnect everyone have a great day.

[music].

[music].

They work with twist Biosciences fiscal 2021 fourth quarter and full year financial results conference call at this time, all participants although slowly mode.

After the Speakers' presentation there'll be a question answer session.

To ask a question during this session we need to press Star then one that's had some telephone.

In English you require assistance during the conference. Please press star.

Let's see what else, it's not forever either.

As a reminder, this call is being recorded.

I'd like to turn the call over to is we're bidding SVP of corporate affairs and she yes, Sir you may begin.

Thank you Michele good morning, everyone I would like to thank all of you for joining us today for twist Biosciences Conference call to review, our fiscal 2021 fourth quarter and full year financial results and business progress.

We issued our financial results release as well as the press release announcing that we entered into an agreement to acquire out there. If this morning, both of which are available at our website at www Dot twist Bioscience dotcom.

With me on today's call, our Doctor Emily La Cruz, <unk>, CEO and co founder of twist, and Jim Thorburn CFO of twist.

Emily will begin with a review of our recent progress on twist businesses.

Jim will report on our financial and operational performance and while he will come back to discuss our upcoming milestones and direction and then we'll open the call for questions.

As a reminder, this call is being recorded.

The audio portion will be archived in the investors section of our website and will be available for two weeks.

During today's presentation, we will make forward looking statements within the meaning of the U S Federal Securities laws.

Forward looking statements generally relate to future events or future financial or operating performance.

Our expectations and beliefs regarding these matters may not materialize and actual results in financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

These risks.

Could those set forth in the press release, we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission.

The forward looking statements in this presentation are based on information available to us as of the date hereof.

And we cannot at this time predict the full extent of the ongoing impact of the COVID-19, pandemic, and any resulting business or economic impact.

We disclaim any obligation to update any forward looking statements, except as required by law.

With that I'll now turn the call over to our Chief Executive Officer, and co founder Dr. Emily lip Hurst.

Thank you Angela and good morning, everyone.

2021 was a defining yoko twist, whether justified Oh did you.

This unexpected customer base.

And she is revenue in.

In parallel we didn't need to biopharma.

Revenue from soybean Chevy's corvette, you're doing these business treatment to a partner of choice.

Rich, we continued engineering progress and are working with them to the disk storage alliance to build market awareness of these global storage solution.

We've moved from a product specific focus towards moving applications across a large and growing end markets.

We have made some important announcements over the last two weeks and will take some time today to talk through the strategic directions of the company.

Oh, the U P. C. C. C will you know overarching club.

So against the backdrop of a global pandemic, we reported record revenue of $132 3 million, but also the year an increase of 47% to school in 2020, and we reported $109 $5 million in audio and increased 77%.

'twenty one.

For the fourth quarter was a tough comp against last year, where we had a single large waldorf might be and what else. We reported revenue of $38 million in order to $45 2 million.

<unk> 17 in fixed respectively.

Diving into the specific businesses and factories biopharma.

The definitive agreements with acquired at very small.

There is a privately held.

And discovery company.

You saw them in vivo discovery using a novel mouse platform.

We have conducted many discovery campaigns will pop out with about a 70% rate of freedom.

Currently at 90% 90 gets the mills operating to date on the fee for service for them.

We see at various complementing Oh synthetic antibody discovery capabilities very nicely.

Clearly the acquisition debt.

<unk> based antibody discovery methods anti body screening technologies, we live in month, one antibody discovery and optimization capabilities.

Importantly, they have an established customer base with six of Douglas Coupland antibodies in clinical trials.

The company has 35 I'm pleased and we'd continue to operate at Cornell and Boston following the acquisition.

We believe that in fiscal 2023.

This would be cash flow positive.

Taking a step back to look at all well go upstream biopharma capabilities.

The integration of all I do is we will have three complementary approaches.

One on brought up.

And the first approach, we are taking to schools and libraries with twist as a competitive advantage throughout the units since he's got some technology.

We synthesize every frequency dialed, including only those form in human or with that as well.

And screening targets when get against use leverage can't generate robust anti body needs.

Second is our approach to generate antibodies from an annual immunized with a target and then all of this thing and sequencing there'll be guilty antibodies that is the specialty of adverse political.

We have entered into technology corporations with several companies to leverage artificial intelligence and machine learning technologies to screen through antibody needs until we find a double digit Roes.

With the acquisition twist, we will have all three approaches offering a unique and comprehensive integrated school Grand opening additional capability to our partners.

As with all internal antibody generation.

In addition, we have products that she pulled the total discovery process, where do you go push can be used to identify targets and all N. G suites can be used to make their own library that you.

Do any pending.

Once it gets the noise and antibody neither twist provide tools to develop the need to fill those who often by offering talking with Jim Simpson fragrance I'm moving older weeks with IGT.

Did you put things.

It's really fun, though as you know we've been working towards once October 19th.

It's difficult to know where all proprietary like if all that process. We've been working hard to put together a team of clinical development and commercialization expertise.

Last week, we launched Ribena by.

<unk> Therapeutics and independent biopharmaceutical company.

We license our lead Bispecific antibody to treat COVID-19, it's worth at all and is committed to provide up to $10 million in initial funding.

You should remember that can make sense of up to five additional targets over the course of the next four years each program subject to additional milestone payments and royalties it felt to me.

When there could be downside, but even that would be first in class.

The opportunity for these incentives is that one that this trial is all variants of consume and two could be delivered subcutaneously, which may also overhaul best in class money too.

We know that we made the need for therapeutics that can be true.

Long COVID-19 as well as antibody therapeutics with the broad neutralizing tripodes ammonia emerging science.

Basketball vaccination, it's far from complete and vaccine effectiveness. Unfortunately, it appears to be declining over time.

There'll be some data on oral therapeutics or a promise.

Beginning to be taken within five days of onset and gloves safety concerns that may not be seen until more white meat chicken.

Peer reviewed.

Publication of recently noted that antibody therapeutics also permit us to provide long term predictions for immunocompromised patients, we don't generate a robust immune responses with vaccines.

We believe this need space for antibody therapeutics in the treatment regimen.

We expect Covid would become an endemic disease in Sydney that he sees are interesting.

We need the business for what could be that that would be used to put it in the hands of her team experience in clinical development and commercialization.

And what should be the upside.

<unk> equity appreciation potential milestone payments of over $100 million.

Mid single digit royalties on any commercial team.

Whether or not it speaks to begin clinical trials with four different type of in 2022.

Two weeks getting the regulatory approvals and pursuing the development hurdles.

This piece of <expletive> I mean tell me based on the Philadelphia minimizing risk.

The risks and quickly developing an antibody with an improved pharmacological profile that hit somebody that you're talking about.

We expect that approval that would be useful development of up to five additional them could be targets emerging from other biopharma platform, each of whom come with additional upfront milestone and royalty payments used to last we used to participate in the upside of any of the five additional license antibodies Wild Snaky thing.

Co development through external funding and an experienced management team.

So with the chickadee from bi.

Pharma, who have a vision of what our platform can add to this industry.

We have now built a base of 34 partners with 41 active and took them to complete the program.

Of the 73 to two programs 55 of milestones and royalties associated with them.

By completing the acquisition of <unk>.

We will have Marcus to mills and programs coming on board.

For revenue, we expect to have a twist, sometimes we need to make in 2022 pending the required approvals.

Turning to synthetic biology.

We reported 14 Handoffs and revenues.

$21 million, although for the fourth quarter.

Over the course of fiscal 'twenty, one and looking to fiscal 'twenty two.

When you Bluebell program that will enable us to capture most of them are equal and I think just money.

And address the requirements for the lost from those customers who make their own agenda.

We believe the largest that most impact reputation of synthetic biology from both a financial and I've gone into.

Got it too will be an effort here.

And we've seen that play out with you know cause.

Because nowadays.

The growing number of Christian mentioned Miguel genes oligo pools and library.

Customers use these products to link phenotype and genotype.

And then submit it to gain a deeper understanding of players you called the development of new diagnostics.

Thanks.

During the quarter, we saw some impact from the extra time every event, where we needed to shut down production for a short period of time.

During Q C. We just tell me the unwanted DNA sequences included analogy.

None of the genes were shipped to kiss the mills, but we did extensive.

Some gene ordeal.

What happened to <unk> since we have trouble should this issue clear the resulting backlog within three weeks and still reported robust although unseen by you talking about you in the quarter.

We did extensive briefs frequency to them that's.

We were able to reveal much more quickly.

Believe me we have no identified the root cause and we don't expect further interruptions in production.

You said that that light it sorry.

Our need for additional capacity and educating machines, which well building currently in the factory of the future outside of Portland.

At the same time.

We have a path to significantly increase capacity at all headquarter in the Bay area.

Sure we can meet the increasing demand from August announced within the next 12 to 18 months.

We recently announced that we not only need to meet the ongoing increasing demand with this.

So any synergies into that when large deal right. Today, we have kept US you can make up approximately 45000 sheets per month, plus from them and engineered products.

So we're building capacity and tell us how much the school of 8000 clonal genes per month, but you Simba and 19000 genes tilman, but April of 2022 to ensure that we continue to meet the needs of focus when we bring different you're going to go online in 2022.

Turning to <unk>, we reported revenues of 21 for me on the last record quarter, even against the company in 2020, where we shipped a single 90 under the ordeal.

We now have several products to bolster our offering including exempt point home.

Confronted XOMA for them with best in class stuff on them.

In addition, we introduced alliance panel products, which are kids with security compound from key opinion leaders in their respective fields, so switch waste heat.

This quarter, we launched a robust clinical exam from the brother and a pan cancer panel I call Dx building, an office that I am panel the <unk> panel with content from the original Genetics Center.

We also announced plans to launch panels with central Jim focused on rare diseases.

What are the storage, we achieved a significant milestone in the past months design information storage all mixed program.

The integration team, who came to twist, Togo and provided us with a set of DNA sequence to be sensitized on the one micron proof of concept chip in a single day.

The sequences with no children, who had been and would pass that test with flying colors.

In addition, we come to them that we can synthesize DNA that you'll find on the one micron proof of concept. She please no crosstalk.

All speed all the intelligence and insights.

What are the critical technology demonstration that validates our ability to achieve smaller dimension.

I jumped in the design phase for the Alpha chip, which would be all sales food costs would we need chip in the meantime, we will lay the groundwork for them to sign on the excess giftedness.

To that end to them, we hired different hormone produced yet twister on digital.

Significant technology advances that we've made in that the threats. We're now focused on preparing for the excess peripheral launched laying the foundation for commercialization of scripted unimportant storage solution.

We'll help you find out the clinical strategy.

Leverage relationship build over the carrier in storage to ensure we have the right products, we took us to know who these days.

At this time I'd like to turn the corner go to Jim to review, our financial results for the quarter.

Alright, Thank you Emily.

We had another very exciting and dynamic as we can.

He can't scale a platform.

We closed out the year on a strong note revenue for the quarter in respect to $8 million.

Except for twist, which is a sequential growth of 9%.

Year on year growth of 17% and this brings our FY 'twenty, one revenue $132 3 million, a 47% increase from FY 'twenty and slightly above the top end of our guidance of 100930 2 million for the year.

Orders were $45 2 million for the quarter, a sequential increase of 16% and 6% year over year. This takes our total orders for the year of approximately $159 million.

Gross margin for the fourth quarter was 47% and our total year gross margin was 39% as compared to 32% in FY 'twenty.

We shipped approximately 2900 customers for the year and that's up from 2200 in FY 'twenty and we ended the year with cash and short term investments of approximately 478 million.

Health care is now our largest segment and accounts for 54% of our business.

Right and you have $71 2 million in FY 'twenty one.

Fortunately in FY 'twenty.

78% growth year on year.

It can go up and Ngls, biopharma and growing demand for our sand byproducts.

Industrial chemicals revenue was $54 5 million in FY 'twenty one versus.

$29 1 million in FY 'twenty.

Even though we're operating in a pandemic, where many academic labs for impacted globally.

Academic revenues was $25 3 million versus $19 6 million in FY 'twenty.

Our continued focus on growing our long tail.

Agricultural revenue was $1 3 million essentially flat with FY 'twenty.

Now I'll provide more color on orders.

We ended on a very strong note with Ngls orders for the fourth quarter of $21 8 million.

Which brings our total ngf's arduously at approximately $76 million.

Compared to 53 million in fiscal 'twenty.

Which is approximately 43% growth year on year from a high comp base restaurants earlier.

This growth reinforces the robust and growing market opportunity.

Funding project portfolio.

<unk> and our commercial organization, expanding our customer base with increased adoption and increasing eight mgs applications and quake and liquid biopsy.

D RNA and controls and clinical applications.

During the quarter, we received orders from approximately 670 Ngos customers.

Top 10 accounts placed orders of approximately $10 million as compared to approximately $7 million for the top 10 in the previous quarter confirming we're seeing continued diversification of our customer footprint.

Pipeline for larger opportunities, we can't just scale overnight tracking 119, nine accounts and that's up from a 182 and noted in our last earnings call.

It have adopted twist unless anything changes from 17 nine on a we noted in our last quarter.

Now turning to send bio.

We saw robust growth in our spend by Argos, which includes genes.

And then perhaps IGT libraries, and all the good pools, which rose to $20 1 million in the fourth quarter up from $15 7 million in the third quarter of FY 'twenty, one which is a sequential growth of 28%.

Up from $16 1 million in the last quarter of fiscal 'twenty was health care segment being the major driver to cross.

Nice to Biopharma.

Continued to scale, our Biopharma antibody discovery business orders rose to $11 6 million for the year pushing.

Pushing the growth of 123, 8% compared to $5 2 million in fiscal 'twenty.

Orders in the fourth quarter were $3 4 million as we continued to build our pipeline of new and repeat customers. As noted earlier, we have 34 partners with 41 active programs of which 35 of milestones and royalties.

Please note August may not translate into revenue.

They provide a trend line for each product group.

Moving from August to revenue.

As noted earlier revenue for the talks with respect to $8 million and brings our cumulative revenue for fiscal 'twenty, one to $132 3 million.

Russia is $19 1 million in fiscal 'twenty, representing approximately 47% year over year across.

<unk> product revenues of 21 4 million from quantum for a sequential growth of 14%.

Notable that we seeded the $20 2 million for the same quarter of FY 'twenty, which included into the 90 million we mentioned Galleria.

In Q4 of the top four customers accounted for approximately 50% of our revenue.

For the year and GFS revenue grew from $44 million in FY 'twenty, just so to chip minus $7 million, which is 65% year on year.

Our sym bio project revenue for the quarter was approximately $14 million and that's down sequentially from $14 three in the previous quarter due to the aforementioned production issue and seasonality in Europe.

Total annual spend by our revenue was $53 million compared to approximately $44 million or 20% growth year on year.

Some of the highlights include shipping to 19, hundreds and by our customers in FY 'twenty, one up from $15 19 in FY 'twenty.

<unk> revenue was $59 million and that's an increase from $55 2 million in FY 'twenty.

We also shipped a record number of genes of approximately 372000, and that's an increase from 330.

We shipped in FY 'twenty.

Nice to Biopharma, our revenue for the quarter was approximately $2 6 million in full year revenue was $7 million as compared to $2 4 million in FY 'twenty and during the year with service approximately 43 customers demonstrating the progress were making and spending on platform.

I will now briefly cover original progress for FY 'twenty one.

Our investments in building out our global commercial organization is reflected in our strong international growth.

EMEA.

Another terrific year with FY 'twenty, one revenue of $44 1 million versus 25 8 million and.

And that 71% year on year.

Now accounts for 33% of our worldwide business.

Have a great year in FY 'twenty, one revenue grew about 100% to $10 3 million from $5 1 million in FY 'twenty.

The U S, which includes Americas revenue was $77 9 million for FY 'twenty one.

Now moving down the P&L.

Our gross margin for the quarter was approximately $15 5 million or 14, 7% of revenue up from 40% in the prior quarter.

Total year margin was approximately $51 7 million catch and 9% of revenues upfront <unk>, 2% in FY 'twenty.

Now to operating expenses, our quarter four operating expenses, which includes R&D and SG&A was $57 7 million.

R&D for the quarter was $19 4 million, which brings our total investments in R&D to $69 1 million for FY 'twenty, one and that's up from 43 million in FY 'twenty.

The major contributors to our investments in R&D for compensation due to higher head count.

And its channel services, primarily associated with our investments in data storage and also increased investments in biopharma.

Our SG&A in quarter, four was $38 2 million, which brings our SG&A for the year $235 9 million as compared to $103 3 million in FY 'twenty.

The increases are primarily higher compensation as we continue to build out the commercial organization.

Stock based compensation.

Fees associated with the audit and investments interest and material weaknesses and increased lease expenses as we expanded our footprint in San Francisco in the factory of the future of importance in the Portland area.

Our net loss before taxes was 1 million for quarter four.

Total loss for the year was $152 million, which includes stock based compensation of $7 million.

<unk> amortization of 10 million.

Capex for the year was 27 million, including $15 million for Wilsonville.

So for equipment deposits on facility improvements.

Given the supply global supply chain challenges, we have strategically increased our amendment to that $2 million compared to $12 million at the end of fiscal 2020.

We ended the year with cash and short term investments of approximately $478 million.

Now just some update on our FY 'twenty guidance.

As we noted we saw strong bookings in quarter, four and are optimistic on our opportunities.

Same time, there remains uncertainty associated with the pandemic.

For FY 'twenty to our revenue guidance in the range of $173 million to $181 million and including the expected completion of the various acquisition in quarter, one fiscal 'twenty, two our revenue guidance increases to $183 million to $193 million.

<unk> revenue is estimated to be in the range of $67 million to $70 million as compared to approximately 53 million in fiscal 'twenty one.

<unk> guidance is estimated to be in the range of 94 to 96 million as compared to approximately $73 million in fiscal 'twenty one.

Biopharma revenue, including our anticipated adverse acquisition is estevan should be approximately 22 to 27 million as compared to approximately 7 million for fiscal 'twenty one.

For the first quarter, we're projecting revenue in the range of 37%, it's actually my own what should we believe is prudent guidance, reflecting the upcoming holiday shutdowns in Europe.

With the pressures and the impact of the production issue, we discussed earlier on the call.

Our fiscal 'twenty, two gross margin projections range from five to capture 7%, which reflects costs associated with our wilsonville wrap up.

Putting these costs gross margin would be 42% to 44%.

Operating expenses, which includes R&D and SG&A are expected to be approximately 315 billion for fiscal 'twenty two.

<unk> $205 million in fiscal 'twenty one.

<unk> increased investments in Biopharma.

Data storage 20 million, our commercial organization 20 million on Portland, Opex startup costs of $10 million, plus those higher stock based comp and higher depreciation.

Our R&D expenses for the year projected to be a constant at $117 million up from $69 million, primarily due to investments in data storage and biopharma.

Our net loss guidance for the year are expected to be approximately 215 billion.

Based office are projected to be approximately 47 million and depreciation are expected to be $13 million.

Our capex for FY 'twenty.

'twenty two is projected here.

To $19 million was approximately $75 million investment in both of the Bill.

In summary, we'd like to thank all of the twisters for delivering another terrific quarter with record pools.

We had another exceptional year of continuing to execute on our strategy in.

Enjoyed broad demand from our customer base and we're significantly stepping up our investment as we can tap into new revenue streams.

With that I'll now turn the call back to Emily.

Thank you thank you Jim.

We accomplished a tremendous amount in fiscal 2021 with execution across all areas of the pizza.

Yeah. Good question because he didn't since you can't put them into growth and give somebody creation for synthetic biology in NCS.

Continue to see huge opportunities ahead for both markets.

With the recent strategic transactions with ribbon is very well positioned to accelerate our biopharma ethical and indeed the surge the engineering accomplishments. We have achieved to date said this digital commercial planning and market introduction.

While these four business areas.

It is very different market opportunities each relies on austerity on the city.

He can be DNA synthesis platform, which remains at the core of our competitive differentiation and success.

Looking ahead fiscal 'twenty can we too will be a year focused on growing market share.

<unk> for future success.

Different biology, we plan to continue to build our business and extend our customer base, we expect to launch commercially Crawford.

Must be cool and it gets to obese billing on positive feedback from our early access customers.

We remain focused on bringing up the effect of the future to reduce turnaround time, especially fortunate.

We've been able to really begin to see the benefits of reduced overtime and adoption for casinos, we jointly make their own G&A in fiscal year 2023.

<unk>, yes, we expect to continue to grow revenues from our existing products, while extending our capabilities around R&D and library preparation.

We expect to launch a twisty find library progression, particularly of course with the IGN transaction discount.

And we intend to expand our customer base for both Smith Macquarie conversions and panels.

For Biopharma, we look forward to seeing our first company in the clinic in 2022 subjects, receiving the appropriate clearances.

We intend to sign additional partnerships in that program as well as supposed to the opportunities to put a grid of show well at a rapid clinical advancement.

With respect to out license at least one antibody.

Canada 2022.

Towards the end of the storage, we intend to continue to drive to early access customers in pilot production.

We will continue to execute on IHOP has missed program milestones.

And I could be advanced market position for this new storage medium in concept is that you need it afterwards.

With that let's open the call for questions.

Rachel.

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Our first question comes from Dan Brennan with Cowen Your line is open.

Great. Thanks, Thanks for the questions guys, maybe just.

First one just to start on the impact from the problem cited first and buy on the court did you quantify how much that contributed and is there anything baked in within your fiscal 'twenty two guidance from that.

I'll jump in and maybe give me a sense yeah no no we didn't quantify the impact in 2021 we didnt notice that Oh, we didn't note that worked really well.

Very strong bookings and revenue and although for the first quarter.

And and the headwinds from from.

This this issue were included.

The Q1 guidance.

Fiscal 'twenty two guidance.

Got it Okay, and then maybe on a acquisition looks.

It looks like.

Around kind of come marine.

Dollars of revenue kind of baked in I guess, maybe first question is how do we think about kind of can you can you give us a sense of the growth rate of that business in particular.

How do we think about the go forward I know you've kind of give any sense for fiscal 'twenty two but.

Any sense on could you give a little more color on you know the customers that they have and you know the outlook beyond fiscal 'twenty, two and then related to that is there any conflict as you internalize their technology, you know given that twisted looking to develop its own antibodies, but is there any risk or.

From our own customers that they view adverse now competing with them.

So I'll stop and stuff. It was the first part of your question on that.

I'll start with the second part and I'll, let Jim answer the first stop as far as the competition no actually it's very synergistic.

The use of in vivo and into approach, which are generic anti body that needs to be.

Humanized him so that goes directly to the to the choice platform.

There are some some congress that don't have.

Don't generate immune response, even in the hyper immune amounts of death, so that's that.

Free cash flow sweeps approach with gifts to move that.

Want to maximize their.

The heat treat them so actually they do both approaches in parallel.

It's really it really is.

The complementarity in.

Between enabled both platform to build on each other.

And be synergistic.

Jim you want to comment on the financial question.

Yeah, So Don Yeah. The 12 million reflects roughly about 10 months revenue this year.

We obviously working through the integration obviously optimistic.

We anticipate seeing significant revenue growth in that business. So right now we're estimating roughly a 7% annualized growth from that base, but obviously update that as we.

You need to develop.

Develop the business with a terrific team firm there is one of the advantages, we're adding customers and roughly 90 customers.

The expanded footprint for us and by organization as well.

Where else, where it's tough to get talent, we're bringing.

Bringing in some some terrific our various team a highly talented and really complements what we're doing with our biopharma and bio business.

Great and then maybe a final one just on the N G asking could you speak to the fiscal 2022 guidance maybe some.

<unk> paid for it.

If we were to look back in four months and that number to be higher.

What are the key levers and included in that I'd be interested to find out what kind of how liquid biopsy.

Impacting our outlook for 2022.

Yeah, I mean, the ended on a strong note bookings were nearly $22 million.

A number of customers were tracking a large number of customers in our pipeline continues to grow it's almost just under 200 now.

Definitely seeing opportunity in liquid biopsy.

Change in MRV.

We've launched or Exxon as Emily mentioned, so were expanding our product portfolio.

And right now we feel we're making a prudent guidance for the fiscal 'twenty two.

Our goal is to continue to invest in commercial organization. So you tend to get quite club service.

We can expand the product portfolio the increase in R&D. So.

We're optimistic in terms of the long term opportunity here, and we feel well positioned to working with large customers.

Great great. Thank you.

Okay.

Our next question comes from Tycho Peterson with Jpmorgan. Your line is open.

Hey, good morning, I'm going to start with Wilsonville I, just wanted to confirm youre reaffirming the kind of mid year 'twenty two targets to open that up to slide 2022, and then as.

As we think about capacity there.

I guess I mean, you're kind of a short cycle, so you're not necessarily pre booking capacity at this point, but how do we think about your ability to kind of scale that capacity and in Jim on margins. I know you are talking about 35% to 37% corporate overall, you know how do we think about the margin impact.

Year progressions around Wilsonville as that capacity gets it gets up and running.

Yes, so good question on bringing out Wilsonville.

<unk> the initial ramp around our fourth quarter.

Maybe step back.

Overall impact for Wilsonville and estimate the dollar impact for the year is $25 million roughly about $10 million is in our opex.

G&A.

Estimating towards the backend of the year, we're going to have about approximately $15 million objecting to $15 million as we ramp up the facility. So that's been an impact.

Q4.

But if you step back and you just normalize the margin or another 40% to 44% range.

As to two.

Wilsonville, we see the opportunity to be able to leverage pricing as well as we address the faster genes.

So our goal is to scale that business as quickly as possible. That's why we're investing in the commercial organization.

We've made a lot of early investments in terms of the capital tools are starting to hire them.

As you can as you can.

So really the key.

Conference call.

We are pushing also additional capacity in San Francisco.

<unk> bullish in terms of numbers and by our customers.

Although the uncertainty around the pandemic.

We're being prudent with our outlook.

Okay.

That's helpful.

Emily.

Data storage you know nice to hear the milestone proof of concept as you get ready for early access launch.

Can you just talk about what's left from a technical perspective.

Before commercial launch and then are there milestones, we should be tracking for that business for 2022.

Yeah from a technical perspective, the next step is to keep growing them in dimension. So.

Last year, we guided that this year, we will have to be one of my country, you're working in and we do.

So the next step is to keep going down.

Crosstalk.

As we mentioned it is the.

The key the key technology issue.

Now we've been able to.

Make it grow from five Micron I don't want my comments.

We're very confident that.

We understand the physics, and chemistry, and how they relate to each other.

And so.

That's why we have.

We have the confidence to to mentioned that the next Super Ultra cheap would be also commercially.

Commercial chip.

So we are in the design phase for the Alpha Chip next next phase would be the production next phase after that would be the.

Debugging development.

Of the chip and when does he has them we'd be able to use it.

We kissed a mill.

In a way that's very similar to what happened this quarter with the MS program coming to us, saying those other sequence I'd like to make.

The same thing will happen.

So guesstimate in terms of milestones.

Hum.

About getting the chip to work signing early our.

The excess kicked them out.

And.

We mentioned in the past the customer.

We focus on for the alpha release because of that.

Very disparate frankly to get onto a new storage medium.

And just to note that the if forgiving environment, we know that that now it's going to be the first platform we launched in June.

We know that it's important for the fifth Shugars doing interactions too.

Whereas the unbundling, where there is room for a back and forth and optimization of the process and to that extent different involved it is.

With the addition to the team to make that happen.

Great last one just on some of that business development updates I guess first on AD for risk did they get downstream economics, you mentioned six antibodies in the clinic. So should we think about that as being additive to kind of the milestones and royalties.

Nothing at this point at this point the classroom is entirely a fee for service.

As we as we combine.

Integrated businesses I think we will have opportunities potentially.

Potentially to.

Upsize the it couldn't make sure that we're able to gain.

And then how are you thinking about the opportunity for <unk> with the spin I mean, obviously, the anti viral data from Pfizer and Merck was pretty good around colgate's, how do you think about that in context of your monoclonal antibody opportunity and then you mentioned I think five non COVID-19 programs.

Longer term that revpar could be ultimately compete with some of your own development efforts on the therapeutic side.

No not the way we structured the business.

It's Uh huh.

It's a nicely.

But that really what I would be working on the same target because as we all and <unk>.

If they were a.

We'll definitely have the advantage of having stumping pill, so it's very synergistic.

And the Kobe.

<unk> assets.

He needs to be in the clinic in 2022, which is which is great for tweaks Bulks recent somebody we have a great expense team.

And.

The idea is to syndicate the risk by having.

I think that the work done at all.

Based on the funding or the symptom as we keep.

And upside opportunities through equity appreciation.

Nice.

Upfront license on royalties.

It's a it's a very much.

And the and the <unk>.

Basically the risk off of.

We're working on the issues.

Pete.

The way the Dd's structured.

Okay. One last one for Jim before I hop off you know, you've got 465 million or so in cash in the balance sheet and the firm. This year, it's going to be about 300 million I think with a net loss in Capex can you just talk on how you're thinking about the balance sheet and potential needs to raise more capital.

Yeah wanting to keep a strong balance sheet, we see lots of opportunity for the company going forward.

And as always.

San Francisco Sky.

And.

We're bringing up Wilsonville. This year, we're investing in data storage, we do see upside in terms of the growth in the business.

As we evaluate our opportunities I'll be making sure we have a strong balance sheet to finance finance, the gross and 23 and 'twenty four.

Sounds good thank you.

Okay.

Yeah.

Our next question comes from Catherine Schulte with Baird. Your line is open.

Hey, Thanks for the questions I guess first maybe just going back to the production issue that you mentioned and what what.

Was the root cause there did it impact all of your production and then you mentioned clearing the backlog in three weeks, but also called out that there would be an impact to send buyout revenue both in the fourth and first quarter. So you know when did the disruption occur and do you think you lost any customers given the delays there.

Yeah. Thank you. Thank you for the question, that's what would be the issue happened.

In August.

As you know soon.

Synthesizing Jean is actually very difficult.

The many steps with our with the chemistry is limited.

Our fellow self steps and.

There was an issue in a combination of reagents and and hardware.

The the frankly the issue was compounded by the fact that the fed was absolutely food.

The bulk of the issue is.

When you add capacity there.

There's no extra hours in the day range twin fulfilling that.

You can use and and when you'll have kept its heat treat takes longer than it should.

Two to clear the backlog. So that's one of the reason why we are adding capacity.

In personal and ski school in the meantime to make sure that.

When programs do happen wherever.

To touch them very quickly and make it basically transparent.

Mr Mill.

On the customer looks like in terms of a loser.

Losing just the mills.

Long term I don't I don't think there is.

And the city of long term income impact, but it does.

Puts us a little bit.

On the Brexit.

We as we.

Stopped the knee.

He is a conservative guide for Q1.

Now that the.

Hum.

We actually saw it a second time Gabe we've seen October.

Really helped us couldn't fly our understanding of the root cause and we believe now that it's totally eliminated.

It's hard to prove a negative until.

Only time will tell but we're.

We're very confident in our understanding of sensus, kidney and assuming what would happen and making sure that it won't happen again.

Okay got it. Thank you for that color and then you talked about expecting to have the first just discovered antibody in the clinic in 'twenty. Two you know with the Covid treatment from Russell R. What about on the partner side do you have any indication of how many of those 32 completed programs are advancing and when any of those could advance to the clinic.

So we don't have it doesn't fix EBV T V.

The EBIT on where they are.

We have no indication that the.

But then it's not meaningful.

As far as we know who they all are.

And so.

We all do.

In the notes to this and future Oh, it's something we need to be in the kidney and so I don't know if the COVID-19 antibodies would be the first ones.

But they seem to be the Korean antibodies are the ones that we have.

Excellent visibility in them, but.

And at the same time.

Can't see that they will report every quarter.

It is programs are completed the nobu is increasing quite quite nicely and so was the increase in the books of the shots on goals.

So more and more recent companies indexing.

Okay, and then last one for me if we could just maybe go back to Dan's question on Mds revenue guidance for 'twenty two came in a little bit higher than where we were so that was great and can you just parse out what you expect from existing customers ramping their business with you versus new customer wins just to say.

Trying to think about the visibility into that number.

So good question most of them most of the revenue ramp is going to come from new customers.

<unk>.

Assets.

Kris and volume.

Task.

We do track Lee the pilot and validation.

Our revenues, but the bulk of our revenue comes from both in production and we'll expect that to be the same.

For fiscal 'twenty, two and that's what's baked into your forecast.

We don't breakout how much is pilot how much validation.

Yeah.

With the growth of the number of customers Q4 bookings.

Our orders.

The types of assays were designed into we're feeling good about our revenue forecast for the year.

Alright, great. Thank you.

Our next question comes from Vijay Kumar with Evercore ISI. Your line is open.

Hey, guys congrats on the print and thanks for taking my question, let me see if I can ask 800 questions on the call to Jim maybe starting with your revenue guidance here ex the acquisitions that you guys did.

I think that the base revenues were 172 to 181, that's about a 30% to 38%.

Considering you guys just yet.

Well north of 45% organic against the tough comp in fiscal 'twenty one.

Is that the you know mid thirty's or low to mid thirties, perhaps conservative.

It seems like NTS growth of 30% against our 65% growth in fiscal 'twenty, one seems to be slowing down.

How much of this is conservatism versus.

Versus a.

Any factors that perhaps you might be seeing them in the business.

Yes, so it's absolutely the business business is going well.

We are we obviously still have a pandemic, you're saying lockdowns begin to reappear in Europe.

We're always Vijay we're all sitting in our in our guidance I don't want to be thoughtful with NDS business is going extremely well.

The number of large customers continues to scale larger scale, we're investing our commercial organization, we're launching new products.

And at the same time, we want to be thoughtful in terms of the guidance.

Yes, there are some major wins in our sales in terms of the market opportunity is really with liquid biopsy I might be as an example.

<unk> talented team at twist in terms of innovating new products. So.

We'll obviously update the guidance as we go through the year, but right now we feel good about the ninth Fortunately six.

And and in addition to that I mean, the MTS market does contain too truthful.

E C sequencing costs coming down so I think there's good opportunity for us in FY 'twenty two and.

FY 'twenty three.

Sticking onto guidance here are the Q1 38.

That's sequentially flattish historically, you guys have out from now.

We see it last year in fiscal 'twenty, one if we adjust for the comps.

Timing of orders because you were up sequentially.

Why is Q1 sequentially, Florida, what kind of impact are you.

Baking in from the.

The manufacturing issue is that is that a factor in Q1 and should those revenues be recognized in the back half.

Well, there's a three issues first of all Europe is.

Higher proportion of our business our revenue for Europe was about $44 million.

So it's scaled significantly from 25 million previous year, so the the European.

Christmas vacation and shutdowns.

That's got higher end products.

<unk>.

And also we got to be realistic we are seeing spots of COVID-19 pressures around the globe, obviously some of that in Asia.

Reading, what's going on in Europe right now.

We're trying to calibrate the impacts on production issue.

And our belief is that the guidance is prudent.

And the $37 million to $39 million range.

Please turn the one on.

Cashflows your guidance for net loss of two 2 million.

That's a massive step up from 150.

In our fiscal 'twenty one.

Driving this Jim I mean, that's that's a really big step up.

It looks like you guys have about 470 ish of cash on hand.

That enough for you guys to.

Breakeven on the cash flow side.

We're a couple of things so we're stepping up our investment in Biopharma.

You know the the overall opex are increasing from $205 million this year of $315 million.

We're stepping up investment in Biopharma roughly $40 million.

Stepping up investments in data storage by $20 million.

Yeah Ali we're continuing to invest in our commercial organization that had those.

Bring on Wilsonville.

The Wilsonville investments are in terms of the Capex is coming years call. It.

$75 million, yes, we're deploying capital.

Applying capital because we really see the customer demands coming along in the future.

We've got a great team from innovating.

Customer base continues to scale. So we're looking at this long term opportunity to to invest and scale up in the marketplace.

Gotcha and then one last one your Biopharma guidance of <unk> 22 to 27 ex the acquisition right. We're looking at somewhere between 12 to 15 ish for the year.

That's a pretty healthy doubling up of Biopharma revenues Jim.

Is.

Revlon biotherapeutics, a customer of yours.

You know I know you have the equity stake.

And if it is how much of a contributor Arista.

What is driving Biopharma strength.

Yeah, there's nothing in that step up I'm assuming for MLR.

When the we have built up the investments in Biopharma over the last year.

We're seeing a lot of customers come back.

We're young but 70 70 odd percent return rate and this is just based on our continuing to invest in the commercial organization invest in Biopharma.

You're seeing that step up in growth.

<unk> done for antibodies and we've got the platform and they're leveraging our DNA platform are sensitive platform.

So we are seeing.

Significant opportunity and that's why it was a step up there.

Thanks, guys.

Okay.

Our next question comes something into that.

He's with Leerink Your line is open.

Yeah, Hi, Emily Jim.

Thanks for taking the question.

Some bigger question here on Biopharma first we saw a roller obviously prior to that you have invested in to twist biopharma.

And now that merits. So just wondering you know given that you have oligos and library of libraries, you have now diversified model with mouse model.

You have it seems like versus using Berkeley lights for cone selection and maybe getting some throughput there.

But if you could maybe just elaborate at this point in time, what else do you need for your Biopharma.

Biopharma capabilities and essentially antibody discovery capabilities.

Nation, the high throughput screening repertoire validation, maybe an expression and scale up maybe just walk us through what you need at this point or do you have all the components that you are seeking here to build a.

Stronger Biopharma antibody discovery business.

It's a great question I think we were pretty much ever.

What we need.

As I mentioned.

The three big avenues to discover isn't their bodies.

The twist approach using a synthetic libraries.

Animal approach was though we have with adverse and then the machine learning AI approach, which we have a number of collaborations are ongoing so we have access to all three tools.

And we.

We intend that he was already optimized the the pending the sequencing of the hit the Reformatting of the answer.

Yeah, Hi, good afternoon Farooq.

Shifting to where we were pretty much who sits in the.

<unk>.

The combination that we have is going to be very powerful and we kind of who the big comprehensive.

Set of suite to Augusta mill.

Okay. That's helpful. And then just I'll keep it to two on supply chain, Jim mentioned, a couple of things that things seem to be.

Holding well, so far but just wanted to understand it.

In terms of where we're hearing quite a bit about plastic plates and pipette tips and other products that might be used in twist products in <unk>.

Delivery of our products with multichannel type it in multiple places and multifamily type costs and things like that so maybe just help us understand that is there anything that we need to keep in mind, there and broadly across supply chain. What are some of the things that you are looking out for thank you.

Well, we are we entered into the pandemic last year, we our strategy of building agile supply chain.

And.

We got a we got ahead of the curve.

We're vigilant in terms of any potential bottlenecks, we did increase our images that's $2 million.

And interestingly.

It is interesting we did a tour of the facility recently and.

Feedback laws, while you guys have got lots of tips searching around so.

We've done it so far we've done a good job on keeping ahead of the issues, obviously, we're seeing demand increase.

We've.

We got terrific team and supply chain.

I've been.

Deliberate in terms of the.

The materials. So it's just a matter of keep training through this and executing.

Got it thanks guys.

Okay.

Our next question comes from Matt Larew with William Blair. Your line is open.

Yeah, Hi, good morning, I, just wanted to ask again on gross margins in terms of pacing throughout the year. So I guess, just contemplating coming back from the backlog here in the fiscal first quarter and then factor in the feature ramping later in New York can you just maybe help us with with pacing for gross margins throughout the year.

Yes, mainly.

As we bring on infectious future.

The we are going to see increased fixed costs.

So we're looking at a total total spend for banks in the future.

Roughly around $25 million of that about 10 minutes millions of sustained Opex G&A.

Hum.

$14 million to $15 million dropping to about $14 million actually is going to impact us in the second second half of the year.

With the.

The.

I think in terms of break it out between Q3, and Q4 is about 30% impact in Q3 of that $14 million and the rest hitting in Q4. So you can build those numbers into your model.

But maybe just step back.

Excluding.

The factory the picture, we're targeting roughly or we're seeing margins the range of 40% to 44%.

As we get in.

To the first half of the calendar year.

Giving you more updates on what that cost looks like sort of normalized margins.

Okay, and then you mentioned.

Some growing interest.

Within the health care segment for synthetic biology. So just curious if you could discuss that a bit more and then maybe somewhat relatedly just give us a sense.

What are you seeing in terms of longer and more complex genes interpret the demand there.

Yeah. So in terms of the health care segment, yeah. So it is growing significantly.

And health care.

Being in the area of.

So the seamless growth so what's driving that he gets to the street three factors on the healthcare side.

You've got the the growth in terms of Ngls.

The growth in terms of Biopharma and then on the <unk> side. So we get lots of questions on the last earnings call. The sequential bookings declined from Q2 into Q3.

The bookings did increase from Q3 to Q4.

That's driven by <unk>.

Dominantly the health care segment with <unk> bio and.

Terms of what does that mean in terms of genes and.

Jean <unk>.

Those tend to be shorter genes.

So we've seen a switch all of our G&A activity for all of them.

Last year, we had.

Higher percentage, but it was longer genes I had more than 1.8 can be this year, if you're looking at $1 <unk> and non clonal genes are accounting for in the last two quarters, roughly 70% of our gene volume.

What's driving that but pharma business is driving that.

Yeah.

Okay I'll leave it there thanks.

Okay.

Okay.

Our next question comes from Luca <unk> with Barclays. Your line is open.

Hello, everybody and thank you for taking my questions here just real quick did you guys call out the actual dollar value impact from the shutdown and sym bio and <unk> and what's expected in <unk>.

Oh no no we didn't.

I can tell you just from us at a cost point of view it was roughly just under a million dollars.

Impacted us.

To.

Mostly having to do reruns.

Waste.

In Q1.

Obviously, we're still working through Q1, the biggest issue in Q1, it's just.

Europe's a higher share of business.

Shutdowns European vacations coming around Christmas.

And we're seeing some hotspots in Asia in terms of Covid.

Same time, we're seeing significant demand coming in in terms of we had really strong caution and auditors.

Yeah.

We'd rather be prudent at this time of year.

Feel good about the growth rates.

Annual guidance.

I want to make sure that.

We calibrate 12 for quarter one.

Okay. That's it.

And I guess as I'm thinking about 'twenty, two when we're thinking about the <unk> tools business.

Major upside driver I think to a lot of the way there are investors or thinking is going to come from the liquid biopsy.

Can you give us a sense of how big that business is for you.

How we should think about either garden's, new tests coming into early 'twenty, two or the anchor Dx in China, how those kind of fade through.

We don't we don't breakout liquid biopsy.

Liquid biopsy is a.

<unk>.

We've got close to 200 large customers who are tracking.

We continue to to do well in terms of the number there but adopted although they've adopted do include liquid biopsy.

Goal here is to build a broad platform.

Because we're seeing more than just as liquid biopsy those MRV.

Seeing other NGL type applications, we have that genomics acquisition.

Microarray two mgs conversion.

The potential regeneron coming back so so our goal here is to keep building the business in terms of number of customers. The number of applications, but obviously, a liquid biopsy will contribute but we're not breaking out the liquid biopsy impact.

Yeah, Okay, sorry, I'm, just trying to try to get it out of it.

[laughter].

Lastly on the R&D step up this is more of just kind of a longer term idea here. So you guys have the biopharma business. The DNA storage and then the rest of it your core business. That's that's looked at as the kind of the cash driver here. So is there give us a sense of how you bucket out that R&D step up is.

That mostly go into the clinical trial work from Biopharma.

How is that also keeping abreast of the R&D spend for Ngls tools. So that you guys can continue to accelerate that growth given it to you.

Smaller business, but it can be a lot bigger.

Yeah I mean.

So you just stepping back looking I'm looking at the business I.

I mean, we are we are stepping up overall R&D and.

The biopharma.

Roughly it will be.

We're introducing an additional $40 million biopharma and 20 million in data storage.

So that's that's what $60 million.

The total of 130.

So in terms of the core business.

Yeah.

We're investing substantially more than 20% of revenues in that core business.

And we will continue to keep keep investing in.

Our core business.

Because we are seeing.

Terrific opportunities in terms of Ngls.

Right it lines.

Also we are seeing.

Good opportunities in terms of investing and expanding the <unk> platform as.

As we start to launch in <unk>.

So.

I think I think we're being balanced in terms of our overall investment in 130 million R&D with biopharma opportunities as highlighted in data storage, yes longer term, but it's becoming becoming more real.

Alright, thank you.

Yeah.

There are no further questions I will turn the call back over to Emily or a path for any closing remarks.

Thank you very much for drilling is today to close the call I want to definitely wish you a wonderful sense, giving especially.

I'm, especially grateful for all the twisters with it to go to the mixing in fiscal 'twenty, one and are already in to just think about the opportunities that lie ahead for two weeks in fiscal 2022. Thank.

Thank you vintage.

This concludes the program and you may now disconnect everyone have a great day.