Avid Bioservices Reports Financial Results for Fourth Quarter and Fiscal Year Ended April 30, 2024

Core Insights - Avid Bioservices achieved a record quarterly revenue of $43 million in Q4 FY 2024, marking an 8% increase from $39.8 million in the same period last year [2][4]. - The company signed $30 million in net new business, resulting in a backlog of $193 million, which is expected to be recognized as revenue over the next five fiscal quarters [3][12]. - For FY 2025, Avid provided revenue guidance of $160 million to $168 million, indicating a projected growth of 17% year-over-year at the midpoint [1][10]. Financial Performance - Total revenues for FY 2024 were $139.9 million, a decrease of approximately 6% compared to $149.3 million in FY 2023, primarily due to fewer manufacturing runs and reduced process development services [2][7]. - Gross profit for Q4 FY 2024 was $5.5 million, representing a gross margin of 13%, down from $8.4 million (21% gross margin) in Q4 FY 2023 [7][34]. - The net loss for Q4 FY 2024 was $123.1 million, or $1.94 per share, compared to a net loss of $0.3 million, or $0.01 per share, in Q4 FY 2023 [22][30]. Operational Developments - The company completed a three-year expansion program, enhancing its mammalian and cell and gene therapy facilities, which significantly increased its annual revenue-generating capacity from approximately $120 million in FY 2021 to over $400 million [9][10]. - Avid's backlog remained stable at $193 million as of April 30, 2024, compared to $191 million at the end of the same quarter last year [3][12]. - The company anticipates an increase in capacity utilization as it onboard new programs, which is expected to improve margins [5][10]. Cost Management - Selling, general, and administrative (SG&A) expenses for Q4 FY 2024 were $6.8 million, a decrease of 10% from $7.6 million in Q4 FY 2023, attributed to lower compensation and facility expenses [34]. - The income tax expense for Q4 FY 2024 was $117.9 million, significantly higher than $0.9 million in Q4 FY 2023, due to a valuation allowance of $118.5 million recorded during the quarter [35]. Sustainability Initiatives - Avid achieved a Committed Badge from EcoVadis, scoring 56 and placing the company in the 62nd percentile globally for sustainability practices [23].