Avid Bioservices, Inc., a Contract Development and Manufacturing Organization (CDMO), reported its financial results for the first fiscal quarter ended July 31, 2024, showing a revenue increase of 6% to $40.2 million, up from $37.7 million in the same period last year. This growth was primarily driven by a rise in process development revenues, which reached $6.2 million compared to $4.3 million in the prior year. Manufacturing revenues also saw a modest increase, totaling $34.0 million, up from $33.4 million.

Despite the revenue growth, Avid Bioservices experienced a net loss of $5.5 million for the quarter, a significant increase from the $2.1 million loss reported in the same period of 2023. The company's gross profit improved to $5.7 million, reflecting a gross margin of 14%, compared to $4.1 million and an 11% margin in the previous year. However, total operating expenses rose to $8.2 million, up from $6.3 million, largely due to a 30% increase in selling, general, and administrative (SG&A) expenses.

The company’s cash and cash equivalents decreased to $33.4 million as of July 31, 2024, from $38.1 million at the end of April 2024. Net cash used in operating activities also increased to $3.7 million, compared to $236,000 in the same quarter last year. The net cash used in investing activities saw a significant reduction, totaling $1.3 million, down from $14.2 million in the prior year, indicating a shift in capital expenditure strategy.

Avid Bioservices completed a private offering of $160 million in convertible senior notes in March 2024, with net proceeds of approximately $153.5 million. These funds were primarily used to repurchase existing debt. The company’s backlog increased to approximately $219 million, up from $189 million at the end of the previous fiscal year, indicating a positive outlook for future revenue.

As of July 31, 2024, total assets were reported at $334.6 million, with total liabilities of $276.0 million, resulting in stockholders' equity of $58.6 million. The accumulated deficit increased to $577.4 million from $571.9 million in the previous quarter. The company is actively working to enhance its operational capacity and market presence while addressing identified weaknesses in its financial reporting controls.