Financial Data and Key Metrics Changes - Revenues for Q4 FY2025 were $36.4 million, a decrease of 4% compared to $37.9 million in the prior year period, primarily due to a $5.6 million decrease in CDMO revenues [16][17] - For the full year, revenues were $128.9 million, an increase of 0.5% compared to $128.3 million in the prior year, driven by a $7.1 million increase in manufacturing demand [19][20] - The company recorded a net loss of $1.1 million for Q4 FY2025, compared to a net loss of $7.1 million in the same period last year [18][22] - Adjusted EBITDA for Q4 FY2025 was $9.1 million, a decrease of $1.3 million from $10.4 million in the prior year [18][22] Business Line Data and Key Metrics Changes - CDMO revenues decreased by $5.6 million in Q4 FY2025, primarily due to lower development revenue [16][17] - Hyaluronic acid manufacturing revenues increased by $4.1 million due to increased demand from the largest customer [17] - For the full year, CDMO revenues declined by $6.5 million, primarily due to lower development revenue [19][20] Market Data and Key Metrics Changes - The company is seeing increased demand from its largest customer due to supply chain initiatives, which is expected to contribute to future revenue growth [31][46] - The GLP-1 market is projected to triple by 2030, indicating significant growth potential for the company in this area [32] Company Strategy and Development Direction - The company is focused on three growth strategies: maximizing existing customer business, advancing late-stage development programs, and winning new impactful business [3][4] - A significant inflection point is anticipated in 2027 related to minimum take-or-pay commitments from a current customer, expanding into Asia Pacific markets [4] - The company has signed a new ten-year commercial manufacturing and supply agreement with a late-stage customer, indicating progress in its late-stage pipeline [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's achievements during the transition year and the improvements made in efficiency and productivity [26][15] - The company is positioned to capitalize on the strong demand for pharmaceutical manufacturing in the U.S. and is increasing investments in sales and marketing [46][55] - Management remains confident in achieving a 12% revenue CAGR and increasing EBITDA margins to over 25% in the midterm [2][22] Other Important Information - The company will transition its fiscal year end to align with the calendar year, effective for the 12/31/2025 period [23][24] - Financial guidance for the seven-month transition period from May 26 to December 2025 is expected to be between $74 million to $76 million in revenue and $12 million to $14 million in adjusted EBITDA [24] Q&A Session Summary Question: What is the expected incremental revenue from the largest customer supply chain initiatives? - Management confirmed that the previously mentioned $20 million of incremental revenue is still a relevant figure, with expectations for volumes to ramp up ahead of the minimum volume commitments in 2027 [29][31] Question: Can you provide details on the new GLP-1 agreement? - Management expressed excitement about the collaboration but did not disclose specific terms, noting the GLP-1 market's projected growth [32] Question: What are the expected margins for the next twelve months? - Management indicated that gross margins for the upcoming seven-month period are expected to be in the low 30% range, with improvements anticipated compared to FY2025 [34][35] Question: How are tariff discussions impacting business? - Management views tariff discussions as noise, emphasizing strong U.S. pharmaceutical manufacturing and the company's strategic positioning to capitalize on opportunities [44][46] Question: What is the current number of late-stage projects? - The company currently has 11 late-stage programs, an increase from 10 previously communicated [56] Question: What was the cash flow from operations in Q4? - The company reported positive cash flow from operations of over $5 million and free cash flow of over $3 million for Q4 [58] Question: What is the timeline and cost for the ERP implementation? - The ERP system is targeted to go live in 2026, with an estimated investment of $600,000 to $1 million [60]