Champions Oncology(US:CSBR)2020-07-27 23:24Financial Data and Key Metrics Changes - The company achieved record revenue of over $32 million, reflecting a 19% year-over-year growth, consistent with mid-year guidance [6][18] - Fourth quarter revenue increased to $8.7 million, up 13% from $7.7 million in the same period last year [18] - The company reported a fourth quarter loss of $1.2 million, compared to a gain of $200,000 in the prior year [18][19] - For the full year, the company recognized a loss of $1.8 million, down from a gain of $270,000 in the previous year [19][28] Business Line Data and Key Metrics Changes - The ex vivo platform is growing rapidly and has become a significant contributor to revenue, with plans to invest in additional equipment to enhance in-house capabilities [10][11] - The regulatory flow cytometry business has faced delays due to COVID-19 but has signed several validation studies, indicating potential future growth [12][13] - R&D investments are focused on enhancing existing platforms and developing new services, including tumor genomic sequencing capabilities [14][15] Market Data and Key Metrics Changes - Demand for the company's services remains strong, with expectations for continued growth despite uncertainties in the pharma customers' budgets for oncology drug development [9] - The company has increased its laboratory supply spending to prepare for potential shortages during the COVID pandemic [7] Company Strategy and Development Direction - The company plans to continue expanding its core business and investing in new service offerings while enhancing existing platforms [5][16] - A strategy to bring outsourced work in-house is expected to reduce costs and improve margins [24] - The company anticipates a revenue growth of 15% to 20% for the upcoming fiscal year [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID pandemic but noted that the company has weathered the storm well and remains operational [7][41] - There is cautious optimism regarding the flow cytometry business, with expectations for material revenue contributions likely in fiscal 2022 [44] Other Important Information - The company ended the fiscal year with $8.3 million in cash, with cash from operations at $2 million for the quarter [27] - The increase in expenses was attributed to higher costs associated with partnerships and one-time expenses, including a $335,000 goodwill write-off [20][21] Q&A Session Summary Question: Update on clinical trials - Clinical trials are progressing slowly, with some delays due to COVID-19, particularly in Phase 1 and Phase 2 trials [31] Question: Revenue contribution from validation projects - Validation studies are expected to contribute around $100,000, with full clinical studies potentially generating five to ten times that amount [32] Question: Sales and marketing headcount update - The sales team has expanded from about 12 to approximately 19-20 salespeople, with plans for further increases in fiscal 2021 [33] Question: Cost impact of COVID-19 - The additional costs related to COVID-19 supplies were estimated to be between $200,000 to $250,000 more than usual [34][35] Question: Revenue trajectory for 2021 - The company expects a 15% to 20% revenue growth for fiscal 2021, with sequential growth anticipated throughout the year [39][41] Question: Cash flow positivity in Q1 - The company anticipates operational profitability in Q1, though cash flow may vary due to timing differences [42] Question: Future R&D spending - R&D spending is expected to be lower than the previous year, but the company will remain opportunistic about potential projects [43] Question: Material revenues from flow cytometry - Significant revenue contributions from the flow cytometry division are expected in fiscal 2022, with some contributions from validation studies in fiscal 2021 [44]