Mon, Sep 9, 8:45 PM (111 days ago)
Avid Bioservices, Inc. reported a 6% increase in revenues to $40.2 million for the quarter ended July 31, 2024, driven by growth in process development services. Despite this revenue growth, the company experienced a net loss of $5.5 million, up from $2.1 million in the prior year, largely due to increased interest expenses related to their 2029 convertible senior notes and rising SG&A costs. Gross profit improved to $5.7 million (14% margin) from $4.1 million (11% margin), reflecting enhanced operational efficiency and lower material costs. Cash flow from operations was negative at $3.7 million, primarily due to the net loss and working capital changes. The company ended the quarter with $33.4 million in cash and a backlog of $219 million, indicating strong demand. However, uncertainties surrounding customer cancellations and supply chain risks persist. Avid is focusing on expanding its CDMO capabilities, particularly in viral vector manufacturing, which may pose operational risks. The company remains compliant with its credit agreement and anticipates sufficient liquidity for the next 12 months, though it may seek additional capital if necessary. Overall, while revenue trends are positive, the financial health is challenged by rising costs and operational risks.