BioLife Solutions(US:BLFS)2020-11-08 07:56Financial Data and Key Metrics Changes - Revenue for Q3 2020 totaled $11.3 million, representing a 71% increase over Q3 2019 revenue of $6.6 million [23] - Adjusted gross margin for Q3 was 57% compared to 69% in the previous year, reflecting lower margin profiles of certain product lines [26] - Adjusted net loss for Q3 2020 was $346,000 or $0.02 per share, compared to adjusted net income of $41,000 or negative $0.02 per share in the same period last year [28] Business Line Data and Key Metrics Changes - Biopreservation media revenue in Q3 was $7.4 million, up 22% year-over-year, accounting for 66% of total revenue [23][11] - Automated thaw revenue and evo cold chain management subscription revenue were in line with reduced expectations due to COVID-19, with 7 new ThawSTAR customers and 5 new evo customers added [15] - CBS freezer franchise gained 23 new customers in Q3, with revenue up 27% sequentially over Q2 [17] Market Data and Key Metrics Changes - The company processed 22 new U.S. FDA master file requests to support the use of biopreservation media products in new clinical trials [12] - The evo cold chain management platform is now used in over 100 clinical trials, primarily early-phase trials [15] Company Strategy and Development Direction - The company aims to reach an interim revenue goal of $100 million over the next few years, focusing on smart execution and growth [10] - Ongoing M&A activity is a priority, with plans to acquire or invest in novel technologies that align with the company's portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to sustain high performance despite COVID-19 challenges [10] - The company anticipates potential revenue contributions from approved cell and gene therapies that incorporate their media products [13] Other Important Information - The acquisition of SciSafe was completed on October 1, 2020, enhancing the company's service offerings in biologic storage [19] - The cash balance at September 30 was $109 million, reduced to approximately $94 million post-acquisition of SciSafe [30] Q&A Session Summary Question: How is the media business driving new customer additions? - Management highlighted leveraging broader exposure and quality reputation, with a significant increase in inbound inquiries and ongoing investment in sales personnel [33][36] Question: What is the management's capacity for additional M&A deals? - Management indicated confidence in their current capacity to manage additional deals while also considering the integration of new talent [42] Question: What is the current manufacturing capacity for the media business? - Current capacity is estimated at $40 million to $50 million, with plans to increase it to $70 million to $80 million through operational adjustments [45] Question: How has COVID-19 impacted customer budgets and spending? - Management noted mixed feedback, with some customers experiencing delays while others are looking to utilize remaining budgets before year-end [63] Question: Can you provide details on the validation process for the evo customer? - Management refrained from disclosing specifics but expressed optimism about the validation process and its significance for future revenue [67]