Inotiv(US:NOTV)2025-12-03 22:32Financial Data and Key Metrics Changes - For Q4 fiscal 2025, total revenue was $138.1 million, an increase of $7.7 million or 5.9% compared to Q4 fiscal 2024, primarily driven by the DSA segment [9][18] - For fiscal year 2025, total revenue was $513 million, an increase of $22.3 million or 4.5% compared to $490.7 million for fiscal 2024 [9][18] - The overall operating loss for Q4 fiscal 2025 decreased to $6.8 million from $13.2 million in Q4 fiscal 2024 [22] - Consolidated net loss attributable to common shareholders for Q4 fiscal 2025 was $8.6 million or a $0.25 loss per diluted share, compared to a loss of $18.9 million or $0.73 per diluted share in Q4 fiscal 2024 [26] Business Line Data and Key Metrics Changes - DSA revenue for Q4 fiscal 2025 was $51.6 million, a 15.7% increase year-over-year, driven by discovery and translational science services [19] - RMS revenue for Q4 fiscal 2025 was $86.5 million, an increase of $700,000 or 0.8% compared to Q4 fiscal 2024 [21] - DSA backlog was $138.2 million at September 30, 2025, compared to $129.9 million at September 30, 2024 [19] Market Data and Key Metrics Changes - The DSA backlog conversion rate was 37.4% for Q4 fiscal 2025, the highest quarterly conversion rate in three years [11] - Net new DSA Awards for Q4 fiscal 2025 were $54.2 million, a 61% increase over Q4 fiscal 2024 [20] Company Strategy and Development Direction - The company aims to improve cash flow and margins while focusing on customer metrics, with specific goals to enhance DSA revenue and margins [7] - The RMS site consolidation project is on track, with plans to close a total of 13 RMS facilities, which is expected to yield annual savings of $6 million to $7 million [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from a cybersecurity incident but expressed satisfaction with the recovery and ongoing demand trends [8][33] - The company is optimistic about maintaining revenue growth and improving margins, with a focus on cost reduction in the RMS business [39][40] Other Important Information - The company engaged Perella Weinberg Partners for financial advisory services to explore potential debt refinancing alternatives [8] - Cash balance increased to $21.7 million as of September 30, 2025, compared to $6.2 million at June 30, 2025 [16][27] Q&A Session Summary Question: What were the headwinds faced in the quarter? - Management identified a cybersecurity incident as the major headwind, leading to increased costs and operational challenges [33][34] Question: What are the quarter-to-date trends regarding ordering patterns? - Management noted that the upcoming quarter is typically weaker due to holiday seasonality but expressed optimism based on recent revenue increases [38][39] Question: How is the company positioned regarding FDA guidance on animal models? - Management indicated minimal exposure to monoclonal antibodies and does not foresee significant impacts from the FDA's guidance [44][45] Question: What are the expectations for customer budgets in 2026? - Management observed an increase in quoting activity and expressed optimism about potential revenue growth for the next year [46][48] Question: How quickly can studies start for clients? - The company typically starts smaller studies within weeks, while larger animal safety assessments may take three to nine months [52]