Avid Bioservices Achieves Significant Growth in Q1 Financials
Company Overview
Avid Bioservices, Inc. (NASDAQ: CDMO) is a specialized biologics contract development and manufacturing organization (CDMO) dedicated to improving patient outcomes by providing high-quality services to biotechnology and pharmaceutical companies. With a legacy of over 30 years, Avid has positioned itself as a trusted partner in the development and manufacturing of biologic therapies.
Impressive First Quarter Results
As Avid announced its financial outcomes for the first quarter, it highlighted a significant revenue achievement of $40.2 million. This marks an impressive 6% increase compared to the previous year's quarter when revenues were recorded at $37.7 million. The growth in revenue was primarily driven by enhanced process development services as the company onboarded new business opportunities.
Building Momentum with New Business
In this quarter, Avid secured $66 million in net new business, resulting in a substantial backlog totaling $219 million. This backlog is a 16% increase from the $189 million seen at the same time in the prior year. Company President and CEO Nick Green noted that a diverse range of projects, including both early-phase and late-stage programs, significantly contributed to this momentum. The organization remains optimistic about recognizing a considerable portion of this backlog as revenue in the coming fiscal quarters.
Investment in Growth
Avid's ongoing investments in infrastructure and capabilities have played a crucial role in its success. The firm has expanded its operational capacity to cater to the needs of both large pharmaceutical companies and small biotech firms alike. This strategic growth initiative encourages Avid’s continuous efforts in customer diversification and project pipeline expansion. The robust results achieved in this quarter reflect a promising direction for the company's future.
Financial Highlights
In terms of financial metrics, Avid purports that gross profit for the quarter ended July 31, 2024, reached $5.7 million, resulting in a gross margin of 14%. This was a noticeable increase from $4.1 million in gross profit and 11% gross margin during the same period in the previous fiscal year. Operating expenses rose by 30% to $8.2 million, attributed mainly to heightened compensation and consulting costs. Avid also reported a net loss of $5.5 million, or $0.09 per share, reflecting strategic investments aimed at achieving future growth.
Future Projections
Avid maintains its revenue guidance for fiscal 2025 between $160 million and $168 million. As new business continues to bloom, Avid aims to fill its remaining capacity while capitalizing on its strong industry reputation. This strategy is poised to enhance margins and further drive growth in the coming quarters.
Recent Developments
Throughout the reported quarter, Avid’s commercial team achieved substantial contract signings, placing a significant focus on building a more extensive revenue base with larger pharma clients. The company's drive to expand its client base reflects its commitment to sustained growth and operational excellence. With additional large pharmaceutical clients joining its roster, Avid is strategically positioned for success.
Contact Information
For further details or investor inquiries, Avid has designated 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
Frequently Asked Questions
What are Avid Bioservices' recent financial results?
Avid reported a revenue of $40.2 million for the first quarter, showing a 6% growth year-over-year with strong demand for process development services.
How much new business did Avid Bioservices secure?
The company signed $66 million in net new business, resulting in a total backlog of $219 million, a 16% increase from last year's backlog.
What profits did Avid Bioservices achieve in the latest quarter?
Avid achieved a gross profit of $5.7 million, resulting in a gross margin of 14%, up from 11% in the previous year.
What is the future revenue guidance for Avid?
Avid has confirmed a revenue guidance for fiscal 2025 in the range of $160 million to $168 million.
Who can I contact for more information about Avid Bioservices?
For investor inquiries, contact Stephanie Diaz at Vida Strategic Partners. For media-related questions, contact Tim Brons at the same firm.
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