Avid Bioservices with solid quarterly results and record orders

Avid Bioservices recently presented its financial results for the first quarter of fiscal year 2025, indicating further growth prospects. CEO Nicholas Green, CFO Daniel Hart, and Chief Commercial Officer Matthew Kwietniak led the conference call, providing insights into the company’s developments. The first quarter of fiscal year 2025 ended on July 31, 2024, with revenue of $40.2 million, representing a 6% increase compared to the same period last year. This increase is primarily due to a rise in process development revenues. The gross profit also improved, reaching $5.7 million (14% gross margin), surpassing the previous year's $4.1 million (11% gross margin). These improvements are mainly attributed to lower material costs and higher revenues, though partially offset by increased personnel costs and other operational expenses. Selling, General, and Administrative (SG&A) expenses rose during the same period from $6.3 million to $8.2 million. The company recorded a net loss of $5.5 million in the first quarter, compared to a loss of $2.1 million in the previous year. On a positive note, adjusted EBITDA was $3 million. As of July 31, 2024, Avid Bioservices had cash and cash equivalents amounting to $33.4 million. During the quarter, the company secured orders worth $66 million and achieved a backlog of $219 million – a new record high. The projects include both new clients and existing major pharmaceutical companies. Notably, a significant portion of the new orders came from new clients. In the cell and gene therapy sector, demand remains modest compared to traditional biologics; however, there are positive developments with new projects, whose full impact is expected to manifest in the coming quarters. Green emphasized that Avid Bioservices would continue to invest heavily in infrastructure and capacity to meet the growing market demands. The goal remains to further expand capacities and diversify the customer portfolio. The conference concluded with an optimistic outlook for the business year, supported by current projects and future growth opportunities.