On September 9, 2024, Avid Bioservices Inc (CDMO, Financial) released its 8-K filing detailing the financial results for the first quarter ended July 31, 2024. Avid Bioservices Inc is a clinical-stage biopharmaceutical company focused on the development and Current Good Manufacturing Practices (CGMP) of biopharmaceutical products derived from mammalian cell culture. The company operates in one reportable segment: contract manufacturing and development services.
Performance Overview
Avid Bioservices Inc reported first-quarter revenue of $40.2 million, falling short of the analyst estimate of $40.76 million. The company also reported a net loss of $5.53 million, or $0.09 per share, compared to an estimated loss of $0.06 per share. This represents a significant increase from the net loss of $2.12 million, or $0.03 per share, reported in the same quarter last year.
Financial Achievements and Challenges
Despite the revenue miss, Avid Bioservices Inc signed $66 million in net new business, resulting in a backlog of $219 million. The company maintained its FY2025 revenue guidance of between $160 million and $168 million. These achievements are crucial for the company as they indicate strong future revenue potential and business growth.
“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.
Income Statement Highlights
| Three Months Ended July 31 | 2024 | 2023 |
|---|---|---|
| Revenues | $40,173 | $37,726 |
| Cost of Revenues | $34,460 | $33,626 |
| Gross Profit | $5,713 | $4,100 |
| Operating Expenses | $8,169 | $6,263 |
| Operating Loss | $(2,456) | $(2,163) |
| Net Loss | $(5,534) | $(2,122) |
| Net Loss Per Share | $(0.09) | $(0.03) |
Balance Sheet and Cash Flow Highlights
| July 31, 2024 | April 30, 2024 | |
|---|---|---|
| Cash and Cash Equivalents | $33,381 | $38,106 |
| Accounts Receivable, Net | $20,962 | $16,644 |
| Total Current Assets | $103,620 | $104,002 |
| Total Assets | $334,642 | $336,557 |
| Total Liabilities | $276,006 | $275,668 |
| Total Stockholders Equity | $58,636 | $60,889 |
Analysis and Outlook
Avid Bioservices Inc's performance in the first quarter highlights both opportunities and challenges. The company's ability to sign significant new business and maintain a strong backlog is promising. However, the widening net loss and revenue miss indicate areas that need attention. The company's investments in infrastructure and capacity expansion are expected to drive future growth, but the immediate financial results suggest a need for cautious optimism.
For more detailed financial information and analysis, please refer to Avid Bioservices Inc's Quarterly Report on Form 10-Q, available on the SEC website.
Explore the complete 8-K earnings release (here) from Avid Bioservices Inc for further details.
