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TUSTIN, Calif., March 6, 2024 (GLOBE NEWSWIRE) — Avid Bioservices, Inc. (NASDAQ:CDMO) is committed to improving the lives of patients by providing high-quality development and manufacturing services. is a specialized biologics contract development and manufacturing organization (CDMO). For biotechnology and pharmaceutical companies, today we are providing preliminary earnings guidance for the third quarter and nine months ending January 31, 2024.
The company expects its fiscal 2024 third quarter results to include:
Revenue and backlog
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Revenue for the third quarter of fiscal 2024 was $33.8 million, a decrease of 11% compared to revenue of $38.0 million in the prior year period, and an increase of 33% compared to revenue of $25.4 million for the second quarter of fiscal 2024. 2024. For the first nine months of fiscal 2024, revenue was $96.9 million, down approximately 11% compared to $109.5 million in the year-ago period. The decline in sales for the third quarter and nine months ended January 31, 2024 compared to the same period last year was primarily due to lower manufacturing runs and fewer process development services from early-stage customers. Thing. In addition, revenue for the first nine months was impacted by a decrease in revenue due to changes in estimated variable consideration under contracts where uncertainty has been resolved.
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The company’s commercial team closed multiple new orders in the third quarter of fiscal 2024 with a total net value of approximately $41 million, resulting in a record $206 million in accrued revenue. Did. This was a 17% increase compared to his $176 million at the end of the quarter. last year. These orders span a wide range of the company’s capabilities and are primarily from late-stage projects. The company expects to recognize significant backlog as revenue over the next five fiscal quarters.
gross profit
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Third quarter fiscal 2024 gross profit was $2.4 million (7% gross margin) compared to third quarter fiscal 2023 gross profit of $9.8 million (26% gross margin) and gross profit of $4.7 million. (Gross profit margin -18%). Gross profit for the first nine months of fiscal 2024 was $1.8 million (2% gross margin), compared to $23.1 million (21% gross margin) for the same period in fiscal 2023. The decrease in gross margin for the three and nine months ended January 31, 2024 compared to the prior year period was primarily due to lower manufacturing runs, lower process development services from early-stage customers, and This was due to an increase in our related costs. It leads to expansion of both the company’s capabilities and technical capabilities. Gross profit for the nine months ended January 31, 2024 was affected by lower revenue due to changes in estimated variable consideration under contracts where uncertainty has been resolved and related to the bankruptcy of one of the company’s small and medium-sized customers. I was also influenced by a project that was completed. delays in the ability to recognize customer product revenue pending implementation of process changes;
Selling, general and administrative expenses
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SG&A expenses were $6.4 million in the third quarter of 2024, a decrease of 10% compared to $7.1 million in the third quarter of 2023, and a decrease of 3% compared to $6.6 million in the second quarter of 2024. . Expenses for the first nine months of fiscal 2024 were $19.2 million, down about 6% compared to his $20.3 million in the same period last year. The decrease in SG&A for both the three and nine months ended January 31, 2024 compared to the prior year period was primarily due to lower compensation and benefits-related expenses and consulting expenses.
Operating profit and loss
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Operating loss for the third quarter of fiscal 2024 was $4.0 million, a decrease compared to operating income of $2.7 million for the third quarter of fiscal 2023, but compared to an operating loss of $11.2 million for the second quarter of fiscal 2024. Increased. Operating loss for the first nine months of fiscal 2024 was $17.4 million and operating income for the first nine months of fiscal 2023 was $2.8 million. Operating income decreased for the three and nine months ended January 31, 2024 compared to the same period last year. The decrease in gross profit for the period was partially offset by a decrease in selling, general and administrative expenses.
Other items
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The company maintains its full-year 2024 revenue guidance at $137 million to $147 million.
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Avid reported cash and cash equivalents of $30.7 million at January 31, 2024, compared to $38.5 million at April 30, 2023.
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During the quarter, Avid marked the completion of its cell and gene therapy (CGT) facility. This represents the final phase of his three-year expansion program that will dramatically increase the company’s service offerings and revenue generation capabilities. Avid estimates that combined revenues from the mammal facility and his CGT facility will reach up to approximately $400 million annually.
About Avid Bioservices, Inc.
Avid Bioservices (NASDAQ:CDMO) is a dedicated contract development and manufacturing organization (CDMO) focused on biologics development and CGMP manufacturing. The company provides comprehensive process development, CGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 30 years of experience in biologics manufacturing, Avid’s services include CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission support. In early-stage programs, the company offers a variety of process development activities including cell line development, upstream and downstream development and optimization, analytical method development, testing and characterization. Our range of services ranges from stand-alone process development projects to complete development and manufacturing programs through commercialization. www.avidbio.com
Forward-looking statements
Statements in this press release that are not purely historical, including statements regarding Avid Bioservices’ intentions, hopes, beliefs, expectations, representations, projections, plans or forward-looking statements, are forward-looking statements within the meaning of private securities litigation. This is a statement regarding the outlook. Reform Act 1995. Forward-looking statements involve risks and uncertainties. As a result, actual results may differ materially from those expressed or implied by the forward-looking statements. This includes the risk that the company will experience delays in engaging new customers, the risk that the company will not be successful in executing customer projects, and the risk that the realization of the company’s objectives will be delayed or adversely affected by changes in economic conditions. , but not limited to. backlog, the risk that the company may not be able to convert the backlog into revenue within the planned period, unforeseen equipment or manufacturing equipment problems that may cause technical problems when the company completes a customer project; Risk that could result in problems such as: delays in project termination or delivery of products to customers, revenue recognition and receipt of payments, or loss of customers; the risk of terminating the contract prior to completion or the risk of reduced or delayed development or manufacturing demand for our services, which could adversely impact 2024 guided revenue; the risk that the financial results we report may differ from the preliminary financial results included herein as a result of closing and review procedures; the risk that expansion into new biologics manufacturing capabilities may divert management’s focus from the company’s existing businesses; the risk that the company may experience delays in hiring qualified personnel for its cell and gene therapy business; the company’s technology; risks of delays in development in attracting customers to our cell and gene therapy businesses and the risk that our cell and gene therapy businesses may not be profitable for several years, if at all; Our business is subject to many other risk factors, including those described 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 our fiscal year. may be influenced by factors. As well, we will include updates on these risk factors that we may provide from time to time in other filings with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Additionally, the Company disclaims any obligation, and assumes no obligation, to update or revise any forward-looking statements contained in this press release, except as required by the government. Law.
CONTACT: Contacts: Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 sdiaz@vidasp.com Tim Brons (Media) Vida Strategic Partners 415-675-7402 tbrons@vidasp.com
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