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Avid Bioservices Reports Financial Results for First Quarter Ended July 31, 2024

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Avid Bioservices (NASDAQ: CDMO) reported financial results for Q1 FY2025 ended July 31, 2024. Key highlights include:

- Revenue of $40.2 million, up 6% year-over-year
- Net new business signings of $66 million
- Backlog increased to $219 million, up 16% from last year
- Gross profit of $5.7 million (14% margin)
- Net loss of $5.5 million or $0.09 per share
- Cash and equivalents of $33.4 million

The company maintained its FY2025 revenue guidance of $160-$168 million. Avid's CEO Nick Green highlighted strong momentum, improved margins, and diverse new business signings, including early-phase programs and late-stage projects advancing toward commercialization.

Avid Bioservices (NASDAQ: CDMO) ha riportato i risultati finanziari per il primo trimestre dell'anno fiscale 2025, terminato il 31 luglio 2024. I punti salienti includono:

- Ricavi di $40,2 milioni, in aumento del 6% rispetto all'anno precedente
- Nuove firme di business nette per $66 milioni
- L'ordine arretrato è aumentato a $219 milioni, con un incremento del 16% rispetto all'anno scorso
- Utile lordo di $5,7 milioni (margine del 14%)
- Perdita netta di $5,5 milioni o $0,09 per azione
- Disponibilità liquide e equivalenti di $33,4 milioni

La società ha mantenuto la propria previsione di ricavi per l'anno fiscale 2025 tra $160 e $168 milioni. Il CEO di Avid, Nick Green, ha sottolineato il forte slancio, il miglioramento dei margini e le diverse nuove firme di business, inclusi programmi nella fase iniziale e progetti in fase avanzata verso la commercializzazione.

Avid Bioservices (NASDAQ: CDMO) reportó resultados financieros para el primer trimestre del año fiscal 2025, que terminó el 31 de julio de 2024. Los aspectos destacados incluyen:

- Ingresos de $40.2 millones, un aumento del 6% en comparación con el año anterior
- Nuevas contrataciones netas de $66 millones
- La cartera aumentó a $219 millones, un incremento del 16% respecto al año pasado
- Ganancia bruta de $5.7 millones (margen del 14%)
- Pérdida neta de $5.5 millones o $0.09 por acción
- Efectivo y equivalentes de $33.4 millones

La empresa mantuvo su guía de ingresos para el año fiscal 2025 entre $160 y $168 millones. Nick Green, CEO de Avid, destacó el fuerte impulso, la mejora en los márgenes y la diversidad de nuevas contrataciones de negocios, incluyendo programas en fase inicial y proyectos en etapas avanzadas hacia la comercialización.

Avid Bioservices (NASDAQ: CDMO)가 2024년 7월 31일 종료된 2025 회계연도 1분기 재무 결과를 보고했습니다. 주요 내용은 다음과 같습니다:

- 수익 $40.2 백만 달러로, 전년 대비 6% 증가
- 신규 계약금 $66 백만 달러
- 적체가 $219 백만 달러로 증가, 전년도 대비 16% 증가
- 총 이익 $5.7 백만 달러 (14% 마진)
- 순 손실 $5.5 백만 또는 주당 $0.09
- 현금 및 현금성 자산 $33.4 백만 달러

회사는 2025 회계연도 수익 가이던스를 $160-$168 백만 달러로 유지했습니다. Avid의 CEO Nick Green은 강력한 모멘텀과 개선된 마진, 초기 단계 프로그램 및 상용화로 나아가는 후기 단계 프로젝트를 포함한 다양한 새로운 비즈니스 계약을 강조했습니다.

Avid Bioservices (NASDAQ: CDMO) a publié ses résultats financiers pour le premier trimestre de l'exercice 2025, qui s'est terminé le 31 juillet 2024. Les points clés incluent :

- Revenus de $40,2 millions, en hausse de 6 % par rapport à l'année précédente
- Nouvelles signatures de contrats nettes de $66 millions
- Le carnet de commandes a augmenté à $219 millions, soit une hausse de 16 % par rapport à l'année dernière
- Bénéfice brut de $5,7 millions (marge de 14 %)
- Perte nette de $5,5 millions ou $0,09 par action
- Liquidités et équivalents de $33,4 millions

La société a maintenu son objectif de revenus pour l'exercice 2025 entre 160 et 168 millions de dollars. Nick Green, le PDG d'Avid, a souligné un fort élan, une amélioration des marges et des nouvelles signatures commerciales diversifiées, incluant des programmes en phase précoce et des projets en phase avancée vers la commercialisation.

Avid Bioservices (NASDAQ: CDMO) hat die finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025, das am 31. Juli 2024 endete, veröffentlicht. Die wichtigsten Highlights sind:

- Einnahmen von $40,2 Millionen, ein Anstieg von 6% im Jahresvergleich
- Nettoneuverträge in Höhe von $66 Millionen
- Der Auftragsbestand stieg auf $219 Millionen, ein Anstieg von 16% im Vergleich zum Vorjahr
- Bruttogewinn von $5,7 Millionen (14% Marge)
- Nettoverluste von $5,5 Millionen oder $0,09 pro Aktie
- Liquide Mittel und verfügbare Mittel von $33,4 Millionen

Das Unternehmen hat seine Umsatzprognose für das Geschäftsjahr 2025 in Höhe von $160-$168 Millionen beibehalten. Der CEO von Avid, Nick Green, hob den starken Schwung, die verbesserten Margen und die vielfältigen neuen Geschäftspartner hervor, einschließlich Programme in der frühen Phase und Projekte in der späten Phase, die auf die Kommerzialisierung hinarbeiten.

Positive
  • Revenue increased 6% year-over-year to $40.2 million
  • Signed $66 million in net new business
  • Backlog grew 16% to $219 million
  • Gross margin improved from 11% to 14%
  • Maintained FY2025 revenue guidance of $160-$168 million
  • Diversification of customer base and project pipeline
Negative
  • Net loss increased to $5.5 million from $2.1 million in the same quarter last year
  • SG&A expenses increased 30% to $8.2 million
  • Cash and cash equivalents decreased from $38.1 million to $33.4 million

Avid Bioservices' Q1 FY2025 results show positive momentum despite challenges. Revenue increased 6% year-over-year to $40.2 million, driven by process development growth. The backlog surge to $219 million, up 16% from last year, indicates strong future revenue potential. However, the net loss widened to $5.5 million from $2.1 million last year, primarily due to increased SG&A expenses.

The company's gross margin improved to 14% from 11%, suggesting operational efficiencies. The $66 million in new orders, including contracts with large pharma companies, aligns with their strategic growth initiatives. Maintaining FY2025 revenue guidance of $160-$168 million demonstrates confidence in their business model despite the increased losses.

Avid's Q1 results reflect the growing demand for CDMO services in the biotech sector. The diverse new business signings, including early-phase programs and late-stage PPQ campaigns, indicate a healthy pipeline across various development stages. This diversity mitigates risk and positions Avid for sustained growth.

The addition of another large pharma customer is significant, as it validates Avid's expanded capabilities and could lead to more stable, long-term contracts. However, investors should monitor the cash burn rate, as cash and equivalents decreased from $38.1 million to $33.4 million in one quarter. The company's focus on filling remaining capacity is important for improving profitability and cash flow in the coming quarters.

-- Recorded First Quarter Revenue of $40.2 Million --

-- Signed $66 Million in Net New Business, Resulting in Backlog of $219 Million --

-- Maintained FY2025 Revenue Guidance of Between $160 Million and $168 Million --

TUSTIN, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ: CDMO), a dedicated biologics contract development and manufacturing organization (CDMO) working to improve patient lives by providing high quality development and manufacturing services to biotechnology and pharmaceutical companies, today announced financial results for the first quarter ended July 31, 2024.

Highlights from the Quarter Ended July 31, 2024, and Other Events:

“Our first quarter continued the strong momentum we have seen since the completion of our expansion program. We are encouraged by the strong revenues and new business signings, which continue to build our backlog and improve margins,” stated Nick Green, president and CEO of Avid Bioservices.

“In addition to the strong overall bookings during the quarter, it was encouraging to see the composition of signings, which included a significant number of new customers, a number of early-phase programs, and multiple late-stage programs, including two PPQ campaigns, one of which is a Phase 3 program advancing toward commercialization, and the other is a commercial product. During the quarter, we continued to record strong revenues from process development as we onboarded new business.

“The investments of the last few years in infrastructure, facilities, and capacity, and the expansion of our capabilities continue to attract new business and a wider range of opportunities. Our new infrastructure and organization are now better equipped to support the needs of large pharma with the same excellence and agility that we provide smaller biotech companies. We look forward to the continued diversification of our customer base and our project pipeline with key programs from early stage to commercialization.

“Looking ahead, our story remains unchanged with our primary focus on filling our remaining capacity. As we continue to sign new business, execute on our backlog and leverage our sterling reputation in the industry, we expect revenues and capacity utilization to increase, generating higher margins, and positioning Avid to achieve strong growth going forward.”

Financial Highlights and Guidance

  • The company is reiterating revenue guidance for fiscal 2025 of $160 million to $168 million.
  • Revenues for the first quarter of fiscal 2025 were $40.2 million, representing a 6% increase as compared to revenues of $37.7 million recorded in the same prior year period. The increase was primarily attributed to an increase in process development revenues during the period.
  • As of July 31, 2024, the company’s backlog was $219 million, representing an increase of 16% compared to $189 million at the end of the same quarter last year. The company anticipates a significant amount of its backlog will be recognized as revenue over the next five fiscal quarters.
  • Gross profit for the first quarter of fiscal 2025 was $5.7 million (14% gross margin), compared to $4.1 million (11% gross margin) in the first quarter of fiscal 2024. The increase in gross profit for the first quarter ended July 31, 2024, compared to the same prior year period was primarily driven by increased revenues and lower material costs used for customer programs, partially offset by increases in compensation and benefit related expenses, facility, manufacturing and other related expenses, and depreciation expense.
  • SG&A expenses for the first quarter of fiscal 2025 were $8.2 million, an increase of 30% compared to $6.3 million recorded for the first quarter of fiscal 2024. The increase in SG&A for the first quarter ended July 31, 2024, compared to the same prior year period was primarily due to increases in compensation and benefit related expenses and audit, legal and other consulting fees.
  • During the first quarter of fiscal 2025, the company’s net loss was $5.5 million or $0.09 per basic and diluted share, compared to a net loss of $2.1 million or $0.03 per basic and diluted share for the first quarter of fiscal 2024.
  • On July 31, 2024, Avid reported cash and cash equivalents of $33.4 million, compared to $38.1 million on April 30, 2024.

More detailed financial information and analysis may be found in Avid Bioservices’ Quarterly Report on Form 10-Q, which is being filed with the Securities and Exchange Commission today.

Recent Corporate Developments

  • The company’s commercial team signed $66 million of net new orders during the first quarter of fiscal 2025 resulting in a backlog of $219 million and our highest net new orders signed since the third quarter of fiscal 2023. The current backlog of $219 million represents a 13% increase over fiscal 2024 year-end backlog of $193 million. These orders span a broad range of the company’s capabilities, with the significant majority representing new projects with new customers including the addition of another large pharma customer. Building a larger revenue base with larger pharma companies is one of the company’s strategic growth initiatives.

Statement Regarding Use of Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures such as non-GAAP adjusted net income, free cash flow, as well as adjusted EBITDA. The company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The company believes that they provide useful information about operating results, enhance the overall understanding of its operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. These non-GAAP financial measures exclude amounts that the company does not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization and its senior management. The company computes non-GAAP financial measures primarily using the same consistent method from quarter to quarter and year to year, and may consider whether other significant items that arise in the future should be excluded from its non-GAAP financial measures.

The company reports non-GAAP financial measures in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. The company believes that non-GAAP financial measures should only be used to evaluate its results of operations in conjunction with the corresponding GAAP financial measures and encourages investors to carefully consider its results under GAAP, as well as the supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand its business.

Non-GAAP net income (loss) excludes stock-based compensation; business transition and related costs including, but not limited to, corporate initiatives into new business activities such as severance and related expenses; non-cash interest expense on debt; and other income or expense items and is adjusted for income taxes. Adjusted EBITDA excludes non-cash operating charges for stock-based compensation, depreciation, and amortization as well as non-operating items such as interest income, interest expense, and income tax expense or benefit and is adjusted for income taxes. For the reasons explained above, adjusted EBITDA also excludes certain business transition and related costs. The company also uses measures such as free cash flow, which represents cash flow provided by or (used in) operations less cash used in the acquisition and disposition of capital.

Additionally, non-GAAP net income (loss) and adjusted EBITDA are key components of the financial metrics utilized by the company’s compensation committee to measure, in part, management’s performance and determine significant elements of management’s compensation. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP financial measures are included at the end of this press release.

Webcast

Avid will host a webcast on Monday, September 9, 2024, at 4:30 PM Eastern (1:30 PM Pacific). To listen to the live webcast, or access the archived webcast, please visit: https://ir.avidbio.com/investor-events

About Avid Bioservices, Inc. 

Avid Bioservices (NASDAQ: CDMO) is a dedicated contract development and manufacturing organization (CDMO) focused on development and CGMP manufacturing of biologics. The company provides a comprehensive range of process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With more than 30 years of experience producing biologics, Avid's services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing and regulatory submissions support. For early-stage programs the company provides a variety of process development activities, including cell line development, upstream and downstream development and optimization, analytical methods development, testing and characterization. The scope of our services ranges from standalone process development projects to full development and manufacturing programs through commercialization. www.avidbio.com

Forward-Looking Statements

Statements in this press release, which are not purely historical, including statements regarding the company’s expected increases in revenues and capacity utilization and resulting higher margins, future growth, the estimated annual revenue-generating capacity of the company’s facilities, continued customer diversification and our project pipeline, the anticipated timing for recognizing revenue from the company’s backlog, the realization of the company’s strategic objectives, the company’s revenue guidance, and other statements relating to the company’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the risk the company may experience delays in engaging new customers, the risk that the company may not be successful in executing customers projects, the risk that changing economic conditions may delay or otherwise adversely impact the realization of the company’s backlog, the risk that the company may not be able to convert its backlog into revenue within the contemplated time periods, the risk that the company may experience technical difficulties in completing customer projects due to unanticipated equipment and/or manufacturing facility issues which could result in projects being terminated or delay delivery of products to customers, revenue recognition and receipt of payment or result in the loss of the customer, the risk that the company’s later-stage customers do not receive regulatory approval or that commercial demand for an approved product is less than forecast, the risk that one or more existing customers terminates its contract prior to completion or reduces or delays its demand for development or manufacturing services which could adversely affect guided fiscal 2025 revenues, the risk that expanding into a new biologics manufacturing capability may distract senior management’s focus on the company’s existing operations, the risk that the company may experience delays in hiring qualified individuals into the cell and gene therapy business, the risk that the company may experience delays in engaging customers for the cell and gene therapy business, and the risk that the cell and gene therapy business may not become profitable for several years, if ever. Our business could be affected by a number of other factors, including the risk factors listed from time to time in our reports filed with the Securities and Exchange Commission including, but not limited to, our annual report on Form 10-K for the fiscal year ended April 30, 2024 (the “Annual Report”), as well as any updates to these risk factors filed from time to time in our other filings with the Securities and Exchange Commission, including our most recent quarterly report on Form 10-Q filed subsequent to the Annual Report. We caution investors not to place undue reliance on the forward-looking statements contained in this press release, and we disclaim any obligation, and do not undertake, to update or revise any forward-looking statements in this press release except as may be required by law.

 
AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Unaudited) (In thousands, except per share information)
      
 Three Months Ended
July 31,
 2024 2023
      
Revenues$40,173  $37,726 
Cost of revenues34,460  33,626 
Gross profit
5,713  4,100 
      
Operating expenses:     
Selling, general and administrative8,169  6,263 
Total operating expenses8,169  6,263 
Operating loss(2,456) (2,163)
Interest expense(2,454) (825)
Other income (expense), net(624) 258 
Net loss before income taxes(5,534) (2,730)
Income tax benefit  (608)
Net loss$(5,534) $(2,122)
Comprehensive loss$(5,534) $(2,122)
      
Net loss per share:     
Basic and diluted$(0.09) $(0.03)
      
Weighted average common shares outstanding:
     
Basic and diluted63,639  62,838 
      


AVID BIOSERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except par value)
        
 July 31,
2024
 April 30,
2024
ASSETS       
Current assets:       
Cash and cash equivalents$33,381  $38,106 
Accounts receivable, net 20,962   16,644 
Contract assets 14,209   12,364 
Inventory 29,196   30,375 
Prepaid expenses and other current assets 5,872   6,513 
Total current assets 103,620   104,002 
Property and equipment, net 185,617   186,514 
Operating lease right-of-use assets 40,741   41,157 
Other assets 4,664   4,884 
Total assets$334,642  $336,557 
        
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current liabilities:       
Accounts payable$19,999  $20,667 
Accrued compensation and benefits 5,608   5,437 
Contract liabilities 37,659   39,887 
Current portion of operating lease liabilities 1,399   1,354 
Other current liabilities 6,417   3,221 
Total current liabilities 71,082   70,566 
Convertible senior notes, net 153,867   153,593 
Operating lease liabilities, less current portion 43,971   44,336 
Finance lease liabilities, less current portion 6,725   7,101 
Other liabilities 361   72 
Total liabilities 276,006   275,668 
        
Commitments and contingencies       
        
Stockholders’ equity:       
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding at respective dates     
Common stock, $0.001 par value; 150,000 shares authorized; 63,790 and 63,568 shares issued and outstanding at respective dates 64   64 
Additional paid-in capital 635,977   632,696 
Accumulated deficit (577,405)   (571,871) 
Total stockholders’ equity 58,636   60,889 
Total liabilities and stockholders’ equity$334,642  $336,557 
        


AVID BIOSERVICES, INC.
ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
(Unaudited) (In thousands)
 
 Three Months Ended July 31,
 2024 2023
    
GAAP net loss$(5,534)  $(2,122) 
Income tax benefit  (608) 
GAAP net loss before income taxes$(5,534)  $(2,730) 
Stock-based compensation2,665  2,343 
Non-cash interest expense305  339 
Unrealized loss on equity investment935   
Income tax effect of adjustments  (588) 
Adjusted net loss($1,629)  $(636) 
    
GAAP net loss$(5,534)  $(2,122) 
Interest expense, net2,143  529 
Income tax benefit  (608) 
Depreciation and amortization2,824  2,649 
Stock-based compensation2,665  2,343 
Unrealized loss on equity investment935   
Adjusted EBITDA$3,033  $2,791 
    
GAAP net cash used in operating activities$(3,680)  $(236) 
Purchase of property and equipment(1,311)  (14,156) 
Free cash flow$(4,991)  $(14,392) 
    

FAQ

What was Avid Bioservices' (CDMO) revenue for Q1 FY2025?

Avid Bioservices reported revenue of $40.2 million for Q1 FY2025, representing a 6% increase compared to the same period last year.

How much new business did Avid Bioservices (CDMO) sign in Q1 FY2025?

Avid Bioservices signed $66 million in net new business during Q1 FY2025, contributing to a backlog of $219 million.

What is Avid Bioservices' (CDMO) revenue guidance for FY2025?

Avid Bioservices maintained its revenue guidance for FY2025 at $160 million to $168 million.

How did Avid Bioservices' (CDMO) gross margin change in Q1 FY2025?

Avid Bioservices' gross margin improved from 11% in Q1 FY2024 to 14% in Q1 FY2025.

Avid Bioservices, Inc.

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