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.
About Avid Bioservices, Inc.
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