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-- F iscal 2019 Projected Revenue of $51 to $55 Million Reaffirmed --
-- Multiple Projects Advanced During the Quarter --
-- Initiated Operations of New Process Development Laboratories --
TUSTIN, Calif., Sept. 10, 2018 (GLOBE NEWSWIRE) -- Avid Bioservices, Inc. (NASDAQ:CDMO) (NASDAQ:CDMOP), 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 of fiscal year (FY) 2019 ended July 31, 2018, and provided an update on its contract manufacturing operations, and other corporate highlights.
Highlights Since April 30, 2018
“During the first quarter of FY 2019, Avid continued to successfully execute the plan we outlined during our year-end earnings call in July. As a result, we are reaffirming our revenue guidance for FY 2019 of $51 to $55 million. Our confidence in achieving this target is driven by the expected recognition of a significant portion of our confirmed backlog of $39 million during the remainder of FY 2019, and high visibility on customer orders for the balance of the year. This includes the anticipated expansion of multiple projects underway with existing clients and additional revenue from numerous issued new client proposals. To support this effort, we have built an exceptional business development team with a cumulative 60+ years of CDMO industry experience. We are aggressively pursuing new customers and building visibility for the business within the industry. We are actively and successfully on-boarding recently awarded projects and significantly enhancing our process development capabilities to best service the growing demands of our customers. The Master Service Agreements that we’ve executed in calendar 2018 are all now contributing to process development revenue. We believe the advances made during the first quarter through our business development efforts and process development enhancements have placed us on track to achieve each of our primary goals: to grow and stabilize revenues through an expanded customer base; to improve margins through increased capacity utilization; and to position the company to achieve positive cash flow,” said Roger Lias, Ph.D., Avid’s president and chief executive officer.
Recent CDMO Developments
Recent Corporate Developments
Financial Highlights and Guidance
More detailed financial information and analysis may be found in Avid’s Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission today.
Avid will host a conference call and webcast this afternoon, September 10, 2018, at 4:30 PM EDT (1:30 PM PDT).
To listen to the conference call, please dial (877) 312-5443 or (253) 237-1126 and request the Avid Bioservices conference call. To listen to the live webcast, or access the archived webcast, please visit: http://ir.avidbio.com/events.cfm.
About Avid Bioservices, Inc.
Avid Bioservices is a dedicated contract development and manufacturing organization (CDMO) focused on development and cGMP manufacturing of biopharmaceutical products derived from mammalian cell culture. The company provides a comprehensive range of process development, high quality cGMP clinical and commercial manufacturing services for the biotechnology and biopharmaceutical industries. With 25 years of experience producing monoclonal antibodies and recombinant proteins in batch, fed-batch and perfusion modes, Avid's services include cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing and regulatory strategy, submission and support. The company also provides a variety of process development activities, including cell line development and optimization, cell culture and feed optimization, analytical methods development and product characterization. www.avidbio.com
Statements in this press release which are not purely historical, including statements regarding Avid Bioservices' 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 including, but not limited to, the risk the company may not achieve cashflow positive, the risk the company may experience delays in engaging new clients, the risk that the company may not be successful in executing client projects, the risk that the company may experience technical difficulties in completing client projects which could delay delivery of products to customers, revenue recognition and receipt of payment or the loss of the customer, 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, and the risk that the company may need to use the majority of its cash to fund operations, thereby delaying the contemplated upgrade to its process development capabilities and expansion plans. 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, 2018, as well as any updates to these risk factors filed from time to time in our other filings with the Securities and Exchange Commission. 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 OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)|
|(in thousands, except share and per share information)|
Three Months Ended
|Contract manufacturing revenue||$||12,589||$||27,077|
|Cost of contract manufacturing||11,397||20,448|
|Selling, general and administrative expenses||3,215||3,853|
|Operating (loss) income||(2,023||)||2,776|
|Other income (expense):|
|Interest and other income||73||27|
|Interest and other expense||(11||)||(3||)|
|(Loss) income from continuing operations||$||(1,961||)||$||2,800|
|Loss from discontinued operations||—||(4,005||)|
|Series E preferred stock accumulated dividends||(1,442||)||(1,442||)|
|Net loss attributable to common stockholders||$||(3,403||)||$||(2,647||)|
|Weighted average common shares outstanding:|
|Net (loss) income per common share attributable to common stockholders, basic:|
|Net (loss) income per common share attributable to common stockholders, diluted:|
- continued -
|AVID BIOSERVICES, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(in thousands, except share information)|
|Cash and cash equivalents||$||37,484||$||42,265|
|Trade and other receivables||2,951||3,754|
|Assets of discontinued operations||2,014||5,000|
|Total current assets||56,920||67,827|
|Property and equipment, net||26,336||26,479|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued payroll and related costs||2,030||2,564|
|Other current liabilities||609||905|
|Liabilities of discontinued operations||1,969||4,550|
|Total current liabilities||25,724||37,863|
|Deferred rent, less current portion||2,145||2,159|
|Capital lease, less current portion||93||—|
|Commitments and contingencies|
|Preferred stock—$0.001 par value; authorized 5,000,000 shares; 1,647,760
shares issued and outstanding at July 31, 2018 and April 30, 2018,
|Common stock—$0.001 par value; authorized 500,000,000 shares;
55,990,274 and 55,689,222 shares issued and outstanding at July 31, 2018
and April 30, 2018, respectively
|Additional paid-in capital||615,040||614,810|
|Total stockholders’ equity||56,746||55,738|
|Total liabilities and stockholders’ equity||$||84,708||$||95,760|
Contacts: Stephanie Diaz (Investors) Vida Strategic Partners 415-675-7401 email@example.com Tim Brons (Media) Vida Strategic Partners 415-675-7402 firstname.lastname@example.org