Champions Oncology(US:CSBR)2025-09-15 21:30Financial Data and Key Metrics Changes - The company reported Q1 revenue of $14 million, rebounding from $12.4 million in Q4 of fiscal 2025, indicating a return to growth after a challenging previous quarter [3][8] - Year-over-year revenue comparison appears flat, but the company views this quarter as a stabilization point and the beginning of renewed momentum [8] - The operating loss for Q1 was $0.5 million compared to an income of $1.3 million in the same quarter last year, with adjusted EBITDA slightly positive at $60,000 [9][12] Business Line Data and Key Metrics Changes - The research services business contributed $13.7 million to the total revenue, while the data business provided the remaining amount [8] - Gross margin decreased to 43% from 50% year-over-year, primarily due to increased outsourced lab service costs [9] - Operating expenses rose to $6 million, with intentional increases in R&D and sales and marketing to support the data business [10] Market Data and Key Metrics Changes - Customer cancellations have decreased, and bookings to revenue conversion has improved, indicating stronger customer relationships [4] - The macro environment remains challenging, but there are signs of improvement in biotech funding and R&D budgets [3][21] Company Strategy and Development Direction - The company is focused on expanding its core TOS platform and driving value opportunities in Corellia and its data business [2][3] - The radiopharmaceutical services platform is being enhanced with new infrastructure and capabilities, aiming to reduce costs and improve gross margins [4] - The company sees significant long-term opportunities in AI and machine learning for drug discovery [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions, although they do not expect a rapid recovery [21] - The company anticipates sequential revenue growth and margin expansion as they bring more work in-house [12] - Management is confident in the ability to execute and deliver value for shareholders, supported by a strong balance sheet and no debt [11][12] Other Important Information - The company ended Q1 with $10.3 million in cash, reflecting a slight increase from the previous year [11] - The management team is committed to maintaining a disciplined approach to cost management while investing in growth [12] Q&A Session Summary Question: Any changes in the strategy on the data licensing business? - Management confirmed there are no changes to the strategy, emphasizing early wins and potential in the data licensing business [14][15] Question: How would you characterize the size of the opportunity in the data business? - Management stated it is still early to predict the exact size and success of the opportunity, but there is significant interest and potential [16] Question: What frameworks are being considered for Corellia? - Management indicated they are looking for external partners and funding to support Corellia's advancement [17] Question: Can you provide insights on the broader investment landscape? - Management described the environment as tough but cautiously optimistic about improving conditions and budget constraints easing [20][21] Question: Will the stabilization period extend into the second half of the year? - Management suggested that Q1 might be the low point for the fiscal year, with expectations for gradual revenue growth [24] Question: Any color on Q2 revenue compared to last year? - Management refrained from providing specific guidance but anticipates revenue will increase on a quarterly basis [28]