Avid Bioservices, a contract development and manufacturing organization for the biotechnology and biopharmaceutical industries, has recently released its 10-Q report. The company provides a comprehensive range of services from process development to Current Good Manufacturing Practices clinical and commercial manufacturing of biologics. With over 30 years of experience, their services include clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submissions support.
In the 10-Q report, Avid Bioservices discussed its strategic objectives, including investing in additional capacity, broadening market awareness, expanding the customer base, and increasing the operating profit margin to be best-in-class within the industry.
The report highlighted the company's second fiscal quarter, reporting revenues of $33.5 million, an increase of 32% compared to the same period in the prior year. Avid Bioservices also expanded its customer base and programs with existing customers, ending the quarter with a backlog of approximately $220 million.
A notable development mentioned in the report is the pending merger with Space Finco, Inc., and Space Mergerco, Inc., which is expected to have a significant impact on the company's future operations.
The report provides a detailed analysis of the financial measures, including revenues, gross profit, selling, general and administrative expenses, operating income, interest expense, other income (expense), net, and income tax provision (benefit) expense. It also compares the results of operations for the three and six months ended October 31, 2024, with the corresponding periods in the prior year.
For the three months ended October 31, 2024, Avid Bioservices reported revenues of $33.5 million, representing a 32% increase from the same period in the prior year. The gross loss for the period was $2.0 million, an improvement from the gross loss of $4.7 million in the prior year. However, the operating loss increased to $12.6 million from $11.2 million in the same period in the prior year.
Interest expense for the three months ended October 31, 2024, was $3.3 million, compared to $0.8 million in the same period in the prior year. The company also reported a net loss of $17.4 million for the period, compared to a net loss of $9.5 million in the same period in the prior year.
For the six months ended October 31, 2024, Avid Bioservices reported revenues of $73.7 million, an increase of 17% from the same period in the prior year. The gross profit for the period was $3.7 million, compared to a gross loss of $0.6 million in the same period in the prior year. However, the company reported a net loss of $22.9 million for the period, compared to a net loss of $11.6 million in the same period in the prior year.
The 10-Q report provides a comprehensive overview of Avid Bioservices' financial performance, strategic objectives, and pending merger, offering valuable insights for investors and stakeholders. Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $12.25. If you want to know more, read the company's complete 10-Q report here.
