Champions Oncology Reports Quarterly Revenue of $14.0 Million
Champions Oncology (Nasdaq: CSBR) reported its financial results for Q4 and fiscal year 2024. Q4 revenue increased 7% to $14 million, with an adjusted EBITDA income of $884,000. However, annual revenue decreased 7% to $50.2 million, with a fiscal year 2024 adjusted EBITDA loss of $3.9 million. The company faced challenges due to the biotech sector's funding environment and pharmaceutical spending patterns. Cost-cutting measures and operational efficiencies were implemented, showing positive results in Q4. Champions is optimistic about returning to consistent profitability in fiscal 2025. The company ended Q4 with a cash position of $2.6 million and no debt.
- Q4 revenue increased 7% to $14 million
- Q4 adjusted EBITDA income of $884,000
- Q4 gross margin on pharmacology services improved to 49%
- Implemented cost-cutting measures and operational efficiencies
- No debt and $2.6 million cash position at quarter-end
- Annual revenue decreased 7% to $50.2 million
- Fiscal Year 2024 adjusted EBITDA loss of $3.9 million
- Fiscal Year 2024 gross margin on pharmacology services declined to 42%
- Increase in customer cancellations affecting study revenue
- Net cash used in operations was $6.1 million for fiscal year 2024
Insights
Champions Oncology has reported mixed financial results for fiscal year 2024. Notably, the company's revenue for the year stood at
The company managed to implement cost-cutting strategies, which resulted in a decrease in total operating expenses by
Despite these efforts, the adjusted EBITDA loss for the year was
For retail investors, it's important to understand that while there are signs of operational recovery, the overall revenue decline and ongoing losses highlight the volatility and risk in investing in this stock. The company's ability to continue improving its operational efficiency and adapt to market conditions will be key factors to monitor going forward.
From a market perspective, Champions Oncology's financial performance reflects the broader challenges faced by the biotech industry. The company's reliance on larger pharmaceutical clients means that fluctuations in their spending patterns can have significant impacts on revenue streams. The CEO's comments about a challenging funding environment and increased project cancellations underscore the high sensitivity of the business to external market conditions.
Interestingly, the company's emphasis on cost management and operational efficiency is a strategic move that aligns well with industry trends. By reducing R&D expenses by
It is also worth noting the company's subsidiary, Corellia AI, which is actively seeking capital. This indicates a potential for strategic growth and diversification, albeit with an associated risk of increased expenses and initial financial strain. Investors should keep an eye on the progress and financial implications of this subsidiary's activities.
For investors, understanding the cyclical nature of the biotech sector and the importance of strategic adaptability is key. While there are positive signs, such as the improved fourth-quarter performance, cautious optimism is advised given the overall annual financial results.
Annual Revenue of
HACKENSACK, NJ / ACCESSWIRE / July 18, 2024 / Champions Oncology, Inc. (Nasdaq:CSBR), a leader in the development of advanced preclinical oncology solutions, today announced its financial results for the fiscal year and fourth quarter ended April 30, 2024.
Fourth Quarter Financial Highlights:
Fourth quarter revenue increased
7% to$14 million Adjusted EBITDA fourth quarter income of
$884,000 Fourth quarter gross margin on pharmacology services of
49%
Fiscal Year 2024 Financial Highlights:
Annual revenue of
$50.2 million , a decrease of7% year-over-yearFiscal Year 2024 adjusted EBITDA loss of
$3.9 million Fiscal Year 2024 gross margin on pharmacology services of
42%
Ronnie Morris, CEO of Champions, commented, "As we discussed over the year, we'd be facing hurdles during fiscal 2024 due to the challenging funding environment in the biotech sector and a range of spending patterns from our larger pharmaceutical companies, leading to a slowdown in sales growth and an increase in cancellations. As we head into our fiscal 2025, the overall market sector is showing some signs of recovery and we feel we've turned a corner as we close out the year." Morris added, "With regards to our wholly owned subsidiary, Corellia, AI, we remain actively engaged with investors in an effort to raise capital while also carefully managing its expenses and the impact to our bottom-line results."
David Miller, CFO of Champions added, "In response to the challenges encountered over the course of the year, we've strategically implemented cost cutting measures and operational efficiencies to improve our bottom line. We began to see results from these efforts in the fourth quarter with adjusted EBITDA income of
Fourth Quarter Financial Results
Total revenue for the fourth quarter of fiscal 2024 was
For the fourth quarter of fiscal 2024, Champions reported a loss from operations of
Cost of oncology solutions was
Research and development expense was
Net cash used in operating activities for the quarter was approximately
Year-to-Date Financial Results
Total revenue for fiscal year 2024 was
For the twelve months ended April 30, 2024, Champions reported a net loss from operations of
Cost of oncology solutions was
Research and development expense was
Net cash used in operations was
Conference Call Information:
The Company will host a conference call today at 4:30 p.m. EST (1:30 p.m. PST) to discuss its fourth quarter financial results. To participate in the call, please call 888-506-0062 (domestic) or 973-528-0011 (international) ten minutes ahead of the call and enter the access code 135832. A replay of the call will be available by dialing 877-481-4010 (Domestic) or 919-882-2331 (International) and entering passcode: 50895, or by accessing the investors section of the company's website within 72 hours.
Full details of the Company's financial results will be available on, or before, Monday July 22, 2024 and no later than Monday July 29, 2024 in the Company's Form 10-K at https://www.championsoncology.com.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP to non-GAAP Net Income (loss) (Unaudited) for an explanation of the amounts excluded to arrive at non-GAAP net income (loss) and related non-GAAP net income (loss) per share amounts for the three and twelve months ended April 30, 2024 and 2023. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net income (loss) and non-GAAP income (loss) per share are not, and should not be viewed as a substitute for similar GAAP items. Champions' defines non-GAAP dilutive income (loss) per share amounts as non-GAAP net income (loss) divided by the weighted average number of diluted shares outstanding. Champions' definition of non-GAAP net income (loss) and non-GAAP diluted income (loss) per share may differ from similarly named measures used by others.
About Champions Oncology, Inc.
Champions Oncology is a global preclinical and clinical research services provider that offers end-to-end oncology R&D solutions to biopharma organizations. With the largest and most annotated bank of clinically relevant patient-derived xenograft (PDX) and primary hematological malignancy models, Champions delivers innovative highest-quality data through proprietary in vivo and ex vivo platforms. Through its large portfolio of cutting-edge bioanalytical platforms, groundbreaking data platform and analytics, and scientific excellence, Champions enables the advancement of preclinical and clinical oncology drug discovery and development programs worldwide. For more information, please visit www.ChampionsOncology.com.
This press release may contain "forward-looking statements" (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties. Champions Oncology generally uses words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. One should not place undue reliance on these forward-looking statements. The Company's actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology's Form 10-K for the fiscal year ended April 30, 2024 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology's future results, levels of activity, performance or achievements may not meet these expectations. The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology's expectations, except as required by law.
Champions Oncology, Inc.
(Dollars in thousands)
Reconciliation of GAAP to Non-GAAP Net Income (Loss) (Unaudited)
| Three Months Ended April 30, |
|
| Twelve Months Ended April 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Net income (loss) - GAAP |
| $ | (109 | ) |
| $ | (2,561 | ) |
| $ | (7,276 | ) |
| $ | (5,335 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
| $ | 263 |
|
| $ | 209 |
|
| $ | 1,118 |
|
| $ | 864 |
|
Net income (loss) - non-GAAP |
| $ | 154 |
|
| $ | (2,352 | ) |
| $ | (6,158 | ) |
| $ | (4,471 | ) |
Reconciliation of GAAP EPS to Non-GAAP EPS - Basic (Unaudited)
|
| Three Months Ended April 30, |
|
| Twelve Months Ended April 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
EPS - GAAP, basic |
| $ | (0.01 | ) |
| $ | (0.19 | ) |
| $ | (0.54 | ) |
| $ | (0.39 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
| $ | 0.02 |
|
| $ | 0.02 |
|
| $ | 0.08 |
|
| $ | 0.06 |
|
EPS - non-GAAP, basic |
| $ | 0.01 |
|
| $ | (0.17 | ) |
| $ | (0.46 | ) |
| $ | (0.33 | ) |
Reconciliation of GAAP EPS to Non-GAAP EPS -Diluted (Unaudited)
|
| Three Months Ended April 30, |
|
| Twelve Months Ended April 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
EPS - GAAP, diluted |
| $ | (0.01 | ) |
| $ | (0.19 | ) |
| $ | (0.54 | ) |
| $ | 0.02 |
|
Less: |
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Effect of stock-based compensation on EPS |
| $ | 0.02 |
|
| $ | 0.02 |
|
| $ | 0.08 |
|
| $ | 0.06 |
|
EPS - non-GAAP, diluted |
| $ | 0.01 |
|
| $ | (0.17 | ) |
| $ | (0.46 | ) |
| $ | 0.07 |
|
Condensed Consolidated Statements of Operations (Unaudited)
|
| Three Months Ended April 30, |
|
| Twelve Months Ended April 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Oncology services revenue |
| $ | 14,001 |
|
| $ | 13,071 |
|
| $ | 50,155 |
|
| $ | 53,870 |
|
|
|
|
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|
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| |
Costs and operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of oncology services |
|
| 7,250 |
|
|
| 7,337 |
|
|
| 29,401 |
|
|
| 29,532 |
|
Research and development |
|
| 2,049 |
|
|
| 2,853 |
|
|
| 9,544 |
|
|
| 11,545 |
|
Sales and marketing |
|
| 1,776 |
|
|
| 1,849 |
|
|
| 7,064 |
|
|
| 7,002 |
|
General and administrative |
|
| 2,762 |
|
|
| 2,746 |
|
|
| 11,067 |
|
|
| 10,240 |
|
Loss on disposal of equipment |
|
| 354 |
|
|
| - |
|
|
| 435 |
|
|
| - |
|
Asset Impairment |
|
| - |
|
|
| 807 |
|
|
| - |
|
|
| 807 |
|
Loss from operations |
| $ | (190 | ) |
| $ | (2,521 | ) |
| $ | (7,356 | ) |
| $ | (5,256 | ) |
Other income (expense), net |
|
| (1 | ) |
|
| (20 | ) |
|
| 48 |
|
|
| (11 | ) |
Net loss before provision (benefit) for income taxes |
| $ | (191 | ) |
| $ | (2,541 | ) |
| $ | (7,308 | ) |
| $ | (5,267 | ) |
Provision (benefit) for income taxes |
|
| (82 | ) |
|
| 20 |
|
|
| (32 | ) |
|
| 68 |
|
Net loss |
| $ | (109 | ) |
| $ | (2,561 | ) |
| $ | (7,276 | ) |
| $ | (5,335 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss per common share outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted |
| $ | (0.01 | ) |
| $ | (0.19 | ) |
| $ | (0.54 | ) |
| $ | (0.39 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and diluted |
|
| 13,593,758 |
|
|
| 13,557,023 |
|
|
| 13,547,604 |
|
|
| 13,541,559 |
|
Condensed Consolidated Balance Sheets as of
| April 30, 2024 |
|
| April 30, 2023 |
| |||
Cash |
| $ | 2,618 |
|
| $ | 10,118 |
|
Accounts receivable |
|
| 9,526 |
|
|
| 8,011 |
|
Prepaid expenses and other current assets |
|
| 1,495 |
|
|
| 1,328 |
|
Total current assets |
|
| 13,639 |
|
|
| 19,457 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
| $ | 5,721 |
|
| $ | 7,186 |
|
Operating lease right-of-use assets, net |
|
| 6,252 |
|
|
| 7,318 |
|
Other long term assets |
|
| 185 |
|
|
| 15 |
|
Goodwill |
|
| 335 |
|
|
| 335 |
|
Total assets |
| $ | 26,132 |
|
| $ | 34,311 |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
| 5,800 |
|
|
| 5,334 |
|
Accrued liabilities |
|
| 2,160 |
|
|
| 2,270 |
|
Current portion of operating lease liabilities |
|
| 1,337 |
|
|
| 1,208 |
|
Other current liability |
|
| 150 |
|
|
| 145 |
|
Deferred revenue |
|
| 12,094 |
|
|
| 12,776 |
|
Total current liabilities |
|
| 21,541 |
|
|
| 21,733 |
|
|
|
|
|
|
|
|
|
|
Non-current portion operating lease liabilities |
|
| 6,093 |
|
|
| 7,391 |
|
Other non-current liabilities |
|
| 401 |
|
|
| 551 |
|
Stockholders' (deficit) equity |
|
| (1,903 | ) |
|
| 4,636 |
|
Total liabilities and stockholders' (deficit) equity |
| $ | 26,132 |
|
| $ | 34,311 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
| Twelve Months Ended |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net loss |
| $ | (7,276 | ) |
| $ | (5,335 | ) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
| 1,118 |
|
|
| 864 |
|
Depreciation and amortization expense |
|
| 1,867 |
|
|
| 2,246 |
|
Operating lease right of use assets |
|
| 1,066 |
|
|
| 952 |
|
Net loss on disposal of equipment |
|
| 435 |
|
|
| - |
|
Allowance for doubtful accounts and estimated credit losses |
|
| 476 |
|
|
| 195 |
|
Asset impairment |
|
| - |
|
|
| 807 |
|
Changes in operating assets and liabilities |
|
| (3,823 | ) |
|
| 4,243 |
|
Net cash (used in) provided by operating activities |
|
| (6,137 | ) |
|
| 3,972 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
| (836 | ) |
|
| (2,872 | ) |
Net cash used in investing activities |
|
| (836 | ) |
|
| (2,872 | ) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Finance lease payments |
|
| (146 | ) |
|
| - |
|
Repurchases of common stock |
|
| (634 | ) |
|
| (74 | ) |
Proceeds from exercise of options |
|
| 253 |
|
|
| 85 |
|
Net cash (used in) provided by financing activities |
|
| (527 | ) |
|
| 11 |
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash |
|
| (7,500 | ) |
|
| 1,111 |
|
Cash, beginning of period |
|
| 10,118 |
|
|
| 9,007 |
|
Cash, end of period |
| $ | 2,618 |
|
| $ | 10,118 |
|
SOURCE: Champions Oncology, Inc.
View the original press release on accesswire.com
FAQ
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