Champions Oncology Reports Record Quarterly Revenue of $14.3 Million
Champions Oncology (NASDAQ:CSBR) reported record second-quarter fiscal 2023 revenue of $14.3 million, reflecting a 21% year-over-year increase. However, the company faced a slowdown in bookings growth attributed to the challenging global economic environment, leading to increased cancellations. Adjusted EBITDA for the quarter was $686,000, a slight decrease from $743,000 the previous year. Full-year growth targets have been revised to 10%-15% due to these factors. Despite challenges, Champions maintains a strong cash position of $10.8 million and no debt.
- Record revenue of $14.3 million for Q2, up 21% YoY.
- Strong cash position with $10.8 million and no debt.
- Adjusted EBITDA of $686,000, indicating operational stability.
- Slowdown in bookings growth due to economic conditions.
- Increase in cancellations impacting future revenue.
- Revised full-year growth target to 10%-15% from earlier estimates.
HACKENSACK, NJ / ACCESSWIRE / December 13, 2022 / Champions Oncology, Inc. (Nasdaq:CSBR), a leading global technology-enabled biotech that is transforming drug discovery through innovative AI-driven pharmaco-pheno-multiomic integration, today announced its financial results for its second quarter of fiscal 2023, ended October 31, 2022.
Second Quarter and Recent Highlights:
- Record quarterly revenue of
$14.3 million , an increase of21% year over year - Adjusted EBITDA of
$686,000 - Discovery targets progressing along the development timeline; expectation to advance to preclinical phase testing in calendar 2023
Ronnie Morris, CEO of Champions, commented, "We continued to deliver good financial results while simultaneously investing in the future growth of the business. Morris added, "while long term prospects remain strong, we experienced a slowdown in the pace of our bookings growth during the quarter. We attribute the slow down to the global economic environment as our customers reanalyzed their spending budgets. We're monitoring the situation closely and we're optimistic this is a short-term adjustment as we've seen a re-acceleration in the beginning of our third quarter."
David Miller, CFO of Champions, added, "We reached another revenue milestone for Champions exceeding
Second Fiscal Quarter Financial Results
Total revenue for the second quarter of fiscal 2023, was a record
For the second quarter of fiscal 2023, Champions reported income from operations of
Cost of oncology solutions was
Research and development expense for the three-months ended October 31, 2022 was
Net cash provided by operating activities was
Year-to-Date Financial Results
For the first six months of fiscal 2023, revenue increased
For the first six months of fiscal 2023, Champions reported a net loss from operations of
Cost of oncology solutions was
Research and development expense for the six-months ended October 31, 2022 was
Net cash provided by operating activities 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 second quarter financial results. To participate in the call, please call 877-545-0523 (Domestic) or 973-528-0016 (International) and enter the access code 541646, or provide the verbal reference "Champions Oncology".
Full details of the Company's financial results will be available by December 15, 2022 in the Company's Form 10-Q at www.championsoncology.com.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP net income (loss) to Non-GAAP net income for an explanation of the amounts excluded to arrive at Non-GAAP net income and related Non-GAAP earnings per share amounts for the three and six months ended October 31, 2022 and 2021. 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 and Non-GAAP earnings per share are not, and should not, be viewed as a substitute for similar GAAP items. Champions defines Non-GAAP dilutive earnings per share amounts as Non-GAAP net earnings divided by the weighted average number of diluted shares outstanding. Champions' definition of Non-GAAP net earnings and Non-GAAP diluted earnings per share may differ from similarly named measures used by other companies.
About Champions Oncology, Inc.
Champions Oncology is a technology-driven research organization that develops innovative therapeutics against cancer targets, offers groundbreaking research software as a service, and provides end-to-end R&D services to biopharma organizations. Champions Oncology is actively engaged in the transformation of drug discovery through a novel approach of pharmaco-pheno-multiomic integration. 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, 2022 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 October 31, | Six Months Ended October 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income (loss) - GAAP | $ | (16 | ) | $ | 277 | $ | (335 | ) | $ | 105 | ||||||
Less: | ||||||||||||||||
Stock-based compensation | 119 | 134 | 325 | 414 | ||||||||||||
Net income (loss) - Non-GAAP | $ | 103 | $ | 411 | $ | (10 | ) | $ | 519 |
Reconciliation of GAAP EPS to Non-GAAP EPS (Unaudited)
Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
EPS - GAAP, basic | $ | (0.00 | ) | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | ||||||||
Less: | ||||||||||||||||||
Effect of stock-based compensation on EPS | 0.01 | 0.01 | 0.02 | 0.03 | ||||||||||||||
EPS - Non-GAAP, basic | $ | 0.01 | $ | 0.03 | $ | - | $ | 0.04 | ||||||||||
Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
EPS - GAAP, diluted | $ | (0.00 | ) | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | ||||||||
Less: | ||||||||||||||||||
Effect of stock-based compensation on EPS | 0.01 | 0.01 | 0.02 | 0.03 | ||||||||||||||
EPS - Non-GAAP, diluted | $ | 0.01 | $ | 0.03 | $ | - | $ | 0.04 |
Unaudited Condensed Consolidated Statements of Operations (unaudited)
Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Oncology services revenue | $ | 14,281 | $ | 11,786 | $ | 28,026 | $ | 23,039 | ||||||||
Cost of oncology services | 7,443 | 5,609 | 14,495 | 11,005 | ||||||||||||
Research and development | 2,604 | 2,299 | 5,491 | 4,603 | ||||||||||||
Sales and marketing | 1,700 | 1,640 | 3,392 | 3,214 | ||||||||||||
General and administrative | 2,527 | 1,975 | 4,925 | 4,129 | ||||||||||||
Income (loss) from operations | 7 | 263 | (277 | ) | 88 | |||||||||||
Other income (loss) | (9 | ) | 26 | (27 | ) | 43 | ||||||||||
Income (loss) before provision for income taxes | (2 | ) | 289 | (304 | ) | 131 | ||||||||||
Provision for income taxes | 14 | 12 | 31 | 26 | ||||||||||||
Net income (loss) | $ | (16 | ) | $ | 277 | $ | (335 | ) | $ | 105 | ||||||
Net Income (loss) per common share outstanding | ||||||||||||||||
basic | $ | (0.00 | ) | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | ||||||
and diluted | $ | (0.00 | ) | $ | 0.02 | $ | (0.02 | ) | $ | 0.01 | ||||||
Weighted average common shares outstanding | ||||||||||||||||
basic | 13,528,643 | 13,428,508 | 13,521,496 | 13,145,930 | ||||||||||||
and diluted | 13,528,643 | 14,549,136 | 13,521,496 | 14,213,450 |
Condensed Consolidated Balance Sheets
October 31, 2022 | April 30, 2022 | |||||||
(unaudited) | ||||||||
Cash | $ | 10,826 | $ | 9,007 | ||||
Accounts receivable, net | 8,948 | 9,513 | ||||||
Other current assets | 834 | 1,144 | ||||||
Total current assets | 20,608 | 19,664 | ||||||
Operating lease right-of-use assets, net | 7,698 | 8,230 | ||||||
Property and equipment, net | 7,708 | 7,134 | ||||||
Other long term assets | 15 | 15 | ||||||
Goodwill | 335 | 335 | ||||||
Total assets | $ | 36,364 | $ | 35,378 | ||||
Accounts payable and accrued liabilities | $ | 6,275 | $ | 5,282 | ||||
Current portion of operating lease liabilities | 1,133 | 1,054 | ||||||
Other current liabilities | 143 | 72 | ||||||
Deferred revenue | 11,185 | 11,071 | ||||||
Total current liabilities | 18,736 | 17,479 | ||||||
Non-current operating lease liabilities | 7,832 | 8,412 | ||||||
Other Non-current Liability | 624 | 391 | ||||||
Total liabilities | 27,192 | 26,282 | ||||||
Stockholders' equity | 9,172 | 9,096 | ||||||
Total liabilities and stockholders' equity | $ | 36,364 | $ | 35,378 |
Unaudited Condensed Consolidated Statements of Cash Flows (unaudited)
Six Months Ended October 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (335 | ) | $ | 105 | |||
Adjustments to reconcile net income (loss) to net cash provided by operations: | ||||||||
Stock-based compensation expense | 325 | 414 | ||||||
Operating lease right-of use assets | 542 | 519 | ||||||
Depreciation and amortization expense | 1,088 | 663 | ||||||
Net gain on disposal of equipment | - | (4 | ) | |||||
Allowance for doubtful accounts | 130 | 117 | ||||||
Changes in operating assets and liabilities | 1,341 | (370 | ) | |||||
Net cash provided by operating activities | 3,091 | 1,444 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (1,358 | ) | (1,473 | ) | ||||
Net cash used in investing activities: | (1,358 | ) | (1,473 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from the exercise of stock options | 86 | 123 | ||||||
Net cash provided by financing activities: | 86 | 123 | ||||||
Net increase in cash | 1,819 | 94 | ||||||
Cash at beginning of period | 9,007 | 4,687 | ||||||
Cash at the end of period | $ | 10,826 | $ | 4,781 | ||||
SOURCE: Champions Oncology, Inc.
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