Avid Bioservices, a contract development and manufacturing organization for the biotechnology and biopharmaceutical industries, has recently released its 10-Q report. The company provides process development and manufacturing services for biologics, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support. In the first fiscal quarter of 2024, Avid Bioservices reported revenues of $40.2 million, representing a 6% increase compared to the same period in the prior year. The company also expanded its customer base and programs, ending the quarter with a backlog of approximately $219 million.
The financial measures considered by Avid Bioservices to assess its performance include revenues, gross profit, selling, general and administrative expenses, operating income, interest expense, other income (expense), net, and income tax (benefit) expense. For the three months ended July 31, 2024, the company reported a gross profit of $5.7 million, representing a 14% gross margin, compared to a gross profit of $4.1 million for the same period in the prior year, with a gross margin of 11%.
Selling, general and administrative expenses for the three months ended July 31, 2024 were $8.2 million, compared to $6.3 million for the same period in the prior year, representing a 30% increase. The increase was primarily attributed to higher compensation and benefit related expenses, audit, legal, consulting and other consulting fees, and other SG&A expenses. Avid Bioservices reported an operating loss of $2.5 million for the three months ended July 31, 2024, compared to an operating loss of $2.2 million for the same period in the prior year.
Interest expense for the three months ended July 31, 2024 was $2.5 million, compared to $0.8 million for the same period in the prior year, primarily due to increased interest expense associated with the company's 2029 Notes. The company also reported an other income (expense), net of $0.6 million for the three months ended July 31, 2024, compared to income of $0.3 million for the same period in the prior year. Avid Bioservices recorded no income tax (benefit) expense for the three months ended July 31, 2024, compared to income tax (benefit) of $0.6 million for the same period in the prior year.
As of July 31, 2024, Avid Bioservices had cash and cash equivalents of $33.4 million, and the company believes that its existing cash and cash equivalents on hand, along with anticipated cash flows from operating activities, will be sufficient to fund its operations for at least the next 12 months. If needed, the company may seek to access capital through borrowing arrangements or through the public or private offering of equity or debt securities. In the first quarter of fiscal 2024, the company reported net cash used in operating activities of $3.7 million, net cash used in investing activities of $1.3 million, and net cash provided by financing activities of $0.3 million. As a result of these announcements, the company's shares have moved 1.4% on the market, and are now trading at a price of $8.95. For the full picture, make sure to review Avid Bioservices's 10-Q report.
