Revenue Performance - Total revenue for Q3 2024 was $9.6 million, a 17% increase from $8.2 million in Q3 2023[4] - Clinical Solutions revenue surged 229% to $2.0 million in Q3 2024, compared to $0.6 million in Q3 2023[6] - Teknova reaffirms its 2024 revenue guidance of $35 million to $38 million, anticipating roughly 2% growth in Lab Essentials[11][12] Profitability and Margins - Gross margin for Q3 2024 was 0.9%, significantly down from 18.0% in Q3 2023, primarily due to a $2.8 million non-recurring charge[7] - Net loss for Q3 2024 was $7.6 million, or negative $0.15 per diluted share, an improvement from a net loss of $10.2 million, or negative $0.34 per diluted share, in Q3 2023[9][25] - Adjusted EBITDA for Q3 2024 was negative $5.0 million, an improvement from negative $5.5 million in Q3 2023[10] Cash Flow and Liquidity - The company lowered its 2024 total free cash outflow outlook to less than $16 million, down from less than $18 million[12] - Total cash and short-term investments were $31.7 million, with gross debt at $12.1 million at the end of Q3 2024[4] - Cash used in operating activities for the nine months ended September 30, 2024, was $11,455 thousand, a decrease from $15,922 thousand for the same period in 2023, reflecting a reduction of approximately 28.9%[29] - The company’s cash and cash equivalents decreased to $6,145 thousand as of September 30, 2024, down from $32,112 thousand at the end of the previous year, a decline of approximately 81.9%[27] - Free cash flow for the nine months ended September 30, 2024, was $(12,013) thousand, an improvement from $(23,544) thousand for the same period in 2023, indicating a reduction of approximately 48.9%[29] Expenses and Liabilities - Operating expenses decreased to $7.5 million in Q3 2024 from $10.2 million in Q3 2023, driven by reduced headcount and spending[8] - Total current liabilities increased to $9,719 thousand as of September 30, 2024, compared to $8,875 thousand as of December 31, 2023, representing an increase of approximately 9.5%[26] - The company’s long-term debt decreased to $10,857 thousand as of September 30, 2024, down from $13,251 thousand as of December 31, 2023, representing a decline of approximately 18.1%[26] Asset Management - As of September 30, 2024, total assets decreased to $124,099 thousand from $128,587 thousand as of December 31, 2023, representing a decline of approximately 3.9%[26] - The company recorded $2.8 million in non-recurring, non-cash charges related to inventory disposal, which impacted gross profit[4][7] - The company’s accumulated deficit increased to $(112,812) thousand as of September 30, 2024, compared to $(91,786) thousand as of December 31, 2023, indicating a worsening of approximately 22.9%[26] Financing Activities - The company raised $15,141 thousand from equity financing in the three months ended September 30, 2024, compared to $22,915 thousand in the same period of 2023, a decrease of approximately 34.1%[27] - Adjusted EBITDA for the three months ended September 30, 2024, was $(5,001) thousand, an improvement from $(5,477) thousand for the same period in 2023, reflecting a positive change of approximately 8.7%[28] - The company reported a net loss of $7,565 thousand for the three months ended September 30, 2024, compared to a net loss of $10,153 thousand for the same period in 2023, indicating an improvement of approximately 25.9%[28]

Core Viewpoint - Alpha Teknova, Inc. is set to report its financial results for Q3 2024 on November 7, 2024, and will host a webcast and conference call for investors [1] Group 1: Company Overview - Teknova has been innovating in the manufacture of critical reagents since 1996, focusing on accelerating the discovery and development of novel therapies [2] - The company provides customizable solutions for various stages of the workflow, supporting sectors such as cell and gene therapy, molecular diagnostics, and synthetic biology [2] - Teknova operates from a headquarters in Hollister, California, with over 200,000 square feet of advanced facilities designed for efficient production [2] Group 2: Financial Reporting - The financial results for the third quarter ended September 30, 2024, will be reported after market close on November 7, 2024 [1] - A live webcast and conference call will take place on the same day at 5:30 p.m. Eastern Time, with a replay available approximately two hours after the event [1]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Core Viewpoint - Alpha Teknova, Inc. has announced a definitive agreement for a private placement of 12,385,883 shares of common stock at a price of $1.24 per share, aiming to raise approximately $15.4 million before expenses [1][7]. Company Overview - Teknova is a leading producer of critical reagents for the life sciences industry, focusing on the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics [1][4]. - The company has been innovating since 1996 and offers customizable solutions for various stages of the workflow, supporting sectors such as cell and gene therapy, molecular diagnostics, and synthetic biology [4]. Financial Details - The private placement is expected to close on or about July 12, 2024, subject to customary closing conditions [7]. - The gross proceeds from the private placement are anticipated to be approximately $15.4 million, which will be used for general corporate purposes [7]. Regulatory Compliance - The securities in the private placement are not registered under the Securities Act and may not be reoffered or resold in the U.S. without an effective registration statement or applicable exemption [3][8]. - Teknova has agreed to file an initial registration statement with the SEC covering the resale of the securities within 45 days of the definitive agreement [8].

Company reaffirms 2024 revenue guidance of $35-38 million Business and Financial Updates Clinical Solutions: Teknova has seen an increase in the number of Clinical Solutions customers since fiscal 2023, from 34 to 43. While the Company's overall revenue in fiscal 2024 is expected to be lower within the Clinical Solutions category compared to fiscal 2023, Teknova has successfully grown the number of its customers entering clinical trials and ordering its GMP-grade products, supporting the Company's thesis th ...

Company reaffirms 2024 revenue guidance of $35-38 million "I'm excited to share our sustained progress in executing against our strategy," said Stephen Gunstream, President and Chief Executive Officer. "I'm increasingly confident that we will continue to deliver through the end of this year and beyond, in particular as market conditions appear likely to improve, notably with recent FDA approvals of novel gene therapies and with a recovery in biotech and cell and gene therapy funding more broadly." Second qu ...

Core Viewpoint - Alpha Teknova (TKNO) has experienced a significant downtrend, with a 24.6% decline over the past four weeks, but is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating that a stock may be oversold [2]. - TKNO's current RSI reading is 22.19, indicating that the heavy selling pressure may be exhausting itself, suggesting a possible trend reversal [2]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in TKNO's earnings estimates, with a 1.5% rise in the consensus EPS estimate over the last 30 days [4]. - TKNO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [4].

Investors might want to bet on Alpha Teknova (TKNO) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The p ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $9.3 million, a 2% increase from $9.1 million in Q1 2023, with an 18% sequential improvement from Q4 2023 [32][68] - Net loss for Q1 2024 was $8.1 million or $0.20 per diluted share, compared to a net loss of $8.8 million or $0.31 per diluted share in Q1 2023 [34] - Adjusted EBITDA improved to negative $3.8 million in Q1 2024 from negative $6.1 million in Q1 2023 [34][89] - Free cash flow was negative $6.7 million for Q1 2024, an improvement from negative $12 million in Q1 2023 [9][71] - Operating expenses for Q1 2024 were $10.2 million, down from $11.4 million in Q1 2023, reflecting aggressive expense management [8][10] Business Line Data and Key Metrics Changes - Clinical Solutions revenue increased by 7% to $1.7 million in Q1 2024 from $1.6 million in Q1 2023, driven by an increased number of customers [7][29] - Lab Essentials revenue remained consistent at $7.3 million for both Q1 2024 and Q1 2023, with a slight increase in customer count offset by a decline in average revenue per customer [60][32] - Gross profit for Q1 2024 was $2.2 million, down from $2.4 million in Q1 2023, with a gross margin of 23.8%, down from 26.6% [61][34] Market Data and Key Metrics Changes - The company reported a diverse customer base with no single customer representing more than 10% of revenue, indicating a stable market position [29] - Recent improvements in biotech funding and increased customer engagement suggest a more optimistic market outlook [67] Company Strategy and Development Direction - The company launched Build-Tek, a custom configurator for high-quality customizable buffers, aiming to enhance customer experience and operational efficiency [58][40] - The management believes that the market is stabilizing after a challenging period, with expectations for improved revenue recognition in early 2025 [5][31] - The company is focused on maintaining critical investments while managing expenses to achieve long-term growth targets [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year revenue guidance of $35 million to $38 million for 2024, supported by a growing customer base [29][35] - The management noted that the company is seeing a positive trend in customer engagement and order patterns, particularly from previously conservative customers [82][29] Other Important Information - Capital expenditures for Q1 2024 were $0.1 million, significantly lower than $4.3 million in Q1 2023, marking the seventh consecutive quarter of decreases [94] - The company expects annualized savings of approximately $8 million from recent workforce reductions and cost-saving measures [72] Q&A Session Summary Question: Can you provide insights on the Clinical Solutions outlook for the rest of the year? - Management acknowledged the lumpy nature of the business but indicated a positive trend in customer numbers and engagement, suggesting a favorable outlook for Clinical Solutions [97][82] Question: What are the early ordering patterns from customers entering Phase III clinical trials? - Management noted that while specific details cannot be disclosed, there is ongoing engagement with customers, and they are optimistic about future orders as these customers scale up [50][25] Question: How does the company plan to manage capital expenditures moving forward? - Management indicated that while capital expenditures have decreased significantly, they expect to maintain a reasonable level of investment to support growth and operational needs [83][48]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(Unaudited)) This section presents unaudited condensed financial statements for Q1 2024, highlighting a net loss and substantial doubt about the company's going concern status Condensed Statements of Operations (Q1 2024 vs Q1 2023) | Metric | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $9,290 | $9,121 | | Gross Profit | $2,209 | $2,423 | | Loss from Operations | $(7,986) | $(8,946) | | Net Loss | $(8,097) | $(8,817) | | Net Loss Per Share | $(0.20) | $(0.31) | Condensed Balance Sheet Highlights | Metric | As of March 31, 2024 (in thousands) | As of December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $21,596 | $28,484 | | Total current assets | $38,823 | $45,660 | | Total assets | $120,817 | $128,587 | | Total liabilities | $37,439 | $38,551 | | Total stockholders' equity | $83,378 | $90,036 | - Management has substantial doubt about the Company's ability to continue as a going concern for the next twelve months due to recurring net losses of **$8.1 million** in Q1 2024, an accumulated deficit of **$99.9 million**, and the risk of not meeting debt covenants[35](index=35&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - In January 2024, the company implemented a workforce reduction of approximately **35 positions**, incurring **$1.3 million** in severance and termination benefits[40](index=40&type=chunk) Revenue by Product Category | Product Category | Q1 2024 Revenue (in thousands) | Q1 2023 Revenue (in thousands) | | :--- | :--- | :--- | | Lab Essentials | $7,266 | $7,257 | | Clinical Solutions | $1,718 | $1,609 | | Other | $306 | $255 | | **Total Revenue** | **$9,290** | **$9,121** | - On March 8, 2024, the company amended its credit agreement with MidCap, reducing minimum net revenue requirements for 2024 from **$42.0 million** to **$34.0 million** and increasing the minimum cash requirement from **$9.0 million** to **$10.0 million**[63](index=63&type=chunk)[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, noting revenue growth, declining gross profit margin, reduced operating expenses, and ongoing liquidity concerns Results of Operations Comparison | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | $ Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $9,290 | $9,121 | $169 | 1.9% | | Gross Profit | $2,209 | $2,423 | $(214) | (8.8)% | | Loss from Operations | $(7,986) | $(8,946) | $960 | (10.7)% | | Net Loss | $(8,097) | $(8,817) | $720 | (8.2)% | - The decrease in gross profit percentage to **23.8%** from **26.6%** was primarily driven by increased overhead costs, largely depreciation expense, following the completion of the new manufacturing facility[105](index=105&type=chunk) - Operating expenses decreased due to reduced headcount, with Research and development expenses falling by **38.4%** and Sales and marketing expenses by **28.9%**, while General and administrative expenses included a one-time **$1.3 million** charge for the workforce reduction[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The company's liquidity is constrained, with **$21.6 million** in cash and cash equivalents as of March 31, 2024, raising substantial doubt about its ability to continue as a going concern due to insufficient capital to meet obligations over the next twelve months[114](index=114&type=chunk)[120](index=120&type=chunk) Net Cash Flow Summary | Cash Flow Activity | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(6,558) | $(7,684) | | Net cash provided by (used in) investing activities | $13 | $(4,312) | | Net cash used in financing activities | $(343) | $(25) | | **Net decrease in cash and cash equivalents** | **$(6,888)** | **$(12,021)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Teknova is exempt from providing quantitative and qualitative disclosures about market risk[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - Based on an evaluation as of March 31, 2024, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[135](index=135&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[136](index=136&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to material legal proceedings but has accrued **$0.3 million** for a pending former employee labor claim - In August 2023, a former employee filed a claim alleging violations of California's labor, wage, and hour laws, with a mediation scheduled for June 6, 2024[88](index=88&type=chunk) - The company has accrued its best estimate of potential loss related to the labor claim in the amount of **$0.3 million**, which is included in 'Accrued liabilities'[88](index=88&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors highlight the company's history of operating losses and potential stock price dilution from available shares - The company has a history of operating losses, including **$8.1 million** for Q1 2024, and may not achieve or maintain profitability in the future[142](index=142&type=chunk) - A significant portion of the company's total outstanding shares are available for immediate resale, which could cause the market price of its common stock to drop significantly[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered equity sales and confirms full utilization of IPO net cash proceeds as of March 31, 2024 - There were no unregistered sales of equity securities during the quarter[147](index=147&type=chunk) - As of March 31, 2024, the company has used all of the net cash proceeds from its IPO[148](index=148&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None reported[150](index=150&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[151](index=151&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this item - None reported[152](index=152&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including credit agreement amendments and officer certifications - The report includes a list of all exhibits filed, such as corporate governance documents, credit agreement amendments, and officer certifications[153](index=153&type=chunk)[154](index=154&type=chunk)