Champions Oncology(US:CSBR)2024-03-12 23:21Financial Data and Key Metrics Changes - The third quarter revenue was $12 million, a decline of 6% from the same quarter in fiscal 2023, with expectations of gradual improvement starting from Q3 [5][11] - Gross margin dipped to 35% for the quarter compared to 41% for the same period last year, with expectations for improvement as revenue expands [14][20] - The loss for the third quarter was approximately $2.6 million compared to $2.5 million in the prior year, with an adjusted EBITDA loss of approximately $1.7 million for the quarter [20][21] Business Line Data and Key Metrics Changes - Sales and marketing expense remained unchanged at $1.7 million, while G&A expense was mostly flat at $2 million compared to $1.9 million in Q3 2023 [6] - R&D expense was approximately $2.2 million compared to $3.2 million in the year-ago period, with a significant reduction in investment towards drug discovery efforts [41] Market Data and Key Metrics Changes - The company noted a modest uptick in clinical bookings, although this area has lagged behind internal expectations [12] - There has been a loosening of R&D budgets in the biotech sector, with increased activity observed in recent months compared to the previous year [17][27] Company Strategy and Development Direction - The company is focusing on expanding work with larger pharmaceutical companies, which generally have more stable budgets compared to smaller biotech firms [3][27] - The company is actively engaged in raising capital to support growth and is evaluating potential near-term licensing opportunities [4][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging third quarter but expressed confidence in positive developments that will lead to improving results in the coming quarters [11][28] - The anticipated turnaround has taken longer than expected, but management is optimistic about achieving quarterly profitability and expanding operating margins over time [27][28] Other Important Information - The company ended the quarter with $4.5 million in cash and no debt, with cash used in operating activities approximately $900,000 [21][30] - The total cost of sales increased to $7.8 million compared to $7.5 million in the third quarter last year, primarily due to increased mouse costs [29] Q&A Session Summary Question: What is the progress update on Corellia AI and investment during Q3? - Management indicated a significant reduction in investment for Corellia in Q4 and Q1, while expressing optimism about potential out-licensing deals for some assets [19][33] Question: What are the expectations regarding the press release and customer budgets? - Management acknowledged a technical issue with the press release timing and noted that customer budgets are showing signs of improvement, although it is still early to determine the extent of recovery [43][44]