Teknova(US:TKNO)2021-08-13 10:08Revenue Performance - Revenue for the three months ended June 30, 2021, was $8.3 million, an increase of 38.3% from $6.0 million in the same period of 2020[124] - Revenue for the six months ended June 30, 2021, was $17.4 million, up 42.6% from $12.2 million in the same period of 2020[124] - Total revenue for the three months ended June 30, 2021, was $8.3 million, representing a 37.5% increase from $6.0 million in the same period of 2020[147] - Lab Essentials revenue increased to $6.5 million for the three months ended June 30, 2021, up 46% from $4.4 million in the same period of 2020[148] - Clinical Solutions revenue rose to $1.6 million for the three months ended June 30, 2021, a 32.5% increase from $1.2 million in the same period of 2020[149] Operating Loss and Expenses - Operating loss for the three months ended June 30, 2021, was $2.5 million, compared to an operating income of $0.7 million in the same period of 2020[124] - Operating loss for the six months ended June 30, 2021, was $3.4 million, compared to an operating income of $1.7 million in the same period of 2020[124] - Total operating expenses for the three months ended June 30, 2021, were $5.9 million, significantly higher than $2.8 million in the same period of 2020[154] - Research and development expenses increased to $0.9 million for the three months ended June 30, 2021, compared to $0.3 million in the same period of 2020[154] - General and administrative expenses were $3.8 million for the three months ended June 30, 2021, up from $1.7 million in the same period of 2020[156] Net Loss and Cash Flow - Net loss for the three months ended June 30, 2021, was $2.3 million, compared to a net income of $0.5 million in the same period of 2020[157] - Adjusted EBITDA for the three months ended June 30, 2021, was $(1,527) thousand, compared to $1,176 thousand for the same period in 2020[164] - Adjusted Free Cash Flow for the six months ended June 30, 2021, was $(10,077) thousand, down from $1,670 thousand in 2020[164] - The company reported a net loss of $(2,250) thousand for the three months ended June 30, 2021, compared to a net income of $512 thousand in 2020[164] - Net cash used in operating activities was $(1,150) thousand for the six months ended June 30, 2021, compared to $1,696 thousand in 2020[174] Capital and Financing - As of June 30, 2021, the company had $112.4 million in working capital, including $108.0 million in cash and cash equivalents[165] - The company completed its IPO in June 2021, resulting in net proceeds of $99.1 million after deducting underwriting discounts and commissions[165] - The company entered into a $27.0 million credit facility with MidCap Financial, which includes a $22.0 million senior secured term loan[168] - Net cash provided by financing activities was $112.1 million for the six months ended June 30, 2021, mainly from the IPO proceeds[182] - The company has a Credit Agreement providing a $27.0 million credit facility, including a $22.0 million senior secured term loan and a $5.0 million working capital facility[186] Market and Growth Expectations - The global market for cell and gene therapies is expected to grow from $2.3 billion in 2020 to $45.4 billion by 2026[130] - Investment capital for companies developing cell and gene therapies increased from $9.8 billion in 2019 to $19.9 billion in 2020[130] - The company expects expenses to increase substantially due to hiring, manufacturing automation, R&D, and potential acquisitions[125] - The company expects to incur significant capital expenditures, including building a new manufacturing facility in Hollister, California, over the next 12 to 18 months[166] Certification and Production - The company has achieved ISO 13485:2016 certification, enabling it to manufacture products for diagnostic and therapeutic applications[121] - The company produced over 200,000 units of transport medium per week during 2020 due to increased demand from the COVID-19 pandemic[137] Customer Base - Only 3.0% of revenue for the three months ended June 30, 2021, was generated from customers outside the United States, compared to 5.1% in the same period of 2020[124] - Revenue from U.S. customers was $8.1 million for the three months ended June 30, 2021, accounting for 97.0% of total revenue, up from 94.9% in the same period of 2020[151] Tax and Accounting - The effective tax rate for the three months ended June 30, 2021, was 20.6%, compared to 29.2% in the same period of 2020[157] - There have been no material changes to critical accounting policies and estimates compared to previous disclosures[190] - The company did not have any off-balance sheet arrangements during the reporting periods[187] - Recent accounting pronouncements that may impact financial position and results are disclosed in the Quarterly Report[194] Company Classification - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards until certain conditions are met[191] - The company will remain an emerging growth company until it has total annual gross revenues of $1.07 billion or more, among other criteria[192] - The company is also classified as a "smaller reporting company," which allows it to take advantage of scaled disclosures until specific market value and revenue thresholds are met[193]