Avid Bioservices Reports Financial Results for First Quarter Fiscal 2019 and Recent Developments
-- Fiscal 2019 Projected Revenue of
-- Multiple Projects Advanced During the Quarter --
-- Initiated Operations of
“During the first quarter of FY 2019, Avid continued to successfully execute the plan we outlined during our year-end earnings call in July. As a result, we are reaffirming our revenue guidance for FY 2019 of
Recent CDMO Developments
- Initiated operations in the first of our new process development laboratories during the quarter.
- Continued progress with ongoing expansion and optimization of our process development capabilities and laboratory space, including:
- Expanding the total available process development laboratory space to more than 6,000 square feet;
- Upgrading the infrastructure and equipment within the existing process development laboratories;
- Implementing new state-of-the-art technologies and equipment designed to facilitate efficient, high-throughput development of upstream and downstream manufacturing processes.
- Signed project extensions with existing clients in the amount of
$4.1 millionduring the quarter. This $4.1 millionis included in our current backlog.
Recent Corporate Developments
- Received final payment of
$2.0 millionin September 2018for a total of $8.0 millionin upfront payments associated with the Asset Assignment and Purchase Agreement signed with Oncologie, Inc.in February 2018for Avid's legacy phosphatidylserine (PS)-targeting program including bavituximab.
Financial Highlights and Guidance
- The company is reaffirming revenue guidance for the full FY 2019 of $51 million - $55 million (ASC 606).
- The current revenue backlog as of
July 31, 2018was $39 million, the majority of which we expect to recognize in FY 2019. Excluding the impact of adopting ASC 606, backlog was $60 million, an increase of 3.6% as compared to $58 millionat the end of the fourth quarter of FY 2018.
- Contract manufacturing revenue was
$12.6 millionfor the first quarter of FY 2019 compared to $27.1 million for the first quarter of FY 2018. The decline as compared to the same prior year period is primarily attributed to a previously disclosed shipping delay which resulted in $9.9 millionin revenue recognized in the first quarter of FY 2018 for manufacturing runs completed, but not shipped, from the fourth quarter of FY 2017. Another factor contributing to the decline is the decreased demand from our two lead customers as previously disclosed, offset by the adoption of ASC 606, which accelerated revenue recognition for a portion of Avid’s projects.
- Gross margin for the first quarter of FY 2019 was 9%, a 15% decrease compared to the same prior year period. The decrease in gross margin was primarily attributed to the shipping delay discussed previously, fewer manufacturing runs during the period that contributed to an increase in idle capacity during the quarter, combined with the variability of manufacturing costs from product to product.
- Selling, general and administrative expenses for the first quarter of FY 2019 were
$3.2 million, a 17% decrease compared to $3.9 million for the first quarter of FY 2018. The decrease in the quarter was driven primarily by the company’s previous efforts to align the cost structure to match the needs of Avid’s current CDMO operations by reducing expenses and streamlining Avid’s operations.
- For the first quarter of FY 2019, the company recorded consolidated net loss attributable to common stockholders of
$3.4 million, or $0.06 per share, compared to a consolidated net loss attributable to common stockholders of $2.6 million, or $0.06 per share, for the same prior year quarter.
- Avid reported
$37.5 millionin cash and cash equivalents as of July 31, 2018, compared to $42.3 millionon April 30, 2018.
More detailed financial information and analysis may be found in Avid’s Quarterly Report on Form 10-Q, which will be filed with the
Avid will host a conference call and webcast this afternoon,
To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the
Statements in this press release which are not purely historical, including statements regarding
|AVID BIOSERVICES, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)|
|(in thousands, except share and per share information)|
Three Months Ended
|Contract manufacturing revenue||$||12,589||$||27,077|
|Cost of contract manufacturing||11,397||20,448|
|Selling, general and administrative expenses||3,215||3,853|
|Operating (loss) income||(2,023||)||2,776|
|Other income (expense):|
|Interest and other income||73||27|
|Interest and other expense||(11||)||(3||)|
|(Loss) income from continuing operations||$||(1,961||)||$||2,800|
|Loss from discontinued operations||—||(4,005||)|
|Series E preferred stock accumulated dividends||(1,442||)||(1,442||)|
|Net loss attributable to common stockholders||$||(3,403||)||$||(2,647||)|
|Weighted average common shares outstanding:|
|Net (loss) income per common share attributable to common stockholders, basic:|
|Net (loss) income per common share attributable to common stockholders, diluted:|
- continued -
|AVID BIOSERVICES, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(in thousands, except share information)|
|Cash and cash equivalents||$||37,484||$||42,265|
|Trade and other receivables||2,951||3,754|
|Assets of discontinued operations||2,014||5,000|
|Total current assets||56,920||67,827|
|Property and equipment, net||26,336||26,479|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued payroll and related costs||2,030||2,564|
|Other current liabilities||609||905|
|Liabilities of discontinued operations||1,969||4,550|
|Total current liabilities||25,724||37,863|
|Deferred rent, less current portion||2,145||2,159|
|Capital lease, less current portion||93||—|
|Commitments and contingencies|
|Preferred stock—$0.001 par value; authorized 5,000,000 shares; 1,647,760
shares issued and outstanding at July 31, 2018 and April 30, 2018,
|Common stock—$0.001 par value; authorized 500,000,000 shares;
55,990,274 and 55,689,222 shares issued and outstanding at July 31, 2018
and April 30, 2018, respectively
|Additional paid-in capital||615,040||614,810|
|Total stockholders’ equity||56,746||55,738|
|Total liabilities and stockholders’ equity||$||84,708||$||95,760|
Stephanie Diaz(Investors) Vida Strategic Partners 415-675-7401 email@example.com Tim Brons(Media) Vida Strategic Partners415-675-7402 firstname.lastname@example.org
Source: Avid Bioservices, Inc