HACKENSACK, N.J.,
Sept. 13, 2018 /PRNewswire/ -- Champions Oncology, Inc.
(Nasdaq: CSBR), engaged in an end-to-end range of research and
development technology solutions and services to improve the
development and use of oncology drugs, today announced its
financial results for the first fiscal quarter ended July 31, 2018.
First Quarter and Recent Business Highlights:
- Record quarterly revenue of $6.2
million, an increase of 23.7% year-over-year
- Record net income of $482,000,
including stock-based compensation and depreciation
- Granted Full Accreditation by the Association for Assessment
and Accreditation of Laboratory Animal Care (AAALAC) International
for its new facility located in Rockville, MD
- Reiterated forecast of at least 20% revenue growth in fiscal
2019 and sustained, quarterly operational profitability
Ronnie Morris, CEO of Champions,
commented, "As we expected, our upward revenue trajectory continued
in the first quarter of fiscal 2019 with year-over-year growth
above 20% as we build upon existing customer relationships and
bring on new customers. Accordingly, we are increasingly optimistic
about our fiscal 2019 outlook for annual revenue growth in excess
of 20%."
David Miller, CFO of Champions
added, "We have reached the inflection point where our growing
sales volume and resulting revenues should consistently exceed our
costs leading to operational profitability on a quarterly
basis."
Financial Results
For the first quarter of fiscal 2019, revenue increased 23.7% to
$6.2 million compared to $5.0 million for the first quarter of fiscal
2018. Total operating expenses for the first quarter of fiscal 2019
were $5.74 million compared to
$5.65 million for the first quarter
of fiscal 2018, an increase of $92,000 or 1.63%.
For the first quarter of fiscal 2019, Champions reported income
from operations of $481,000,
including $83,000 in stock-based
compensation and $118,000 in
depreciation expenses, an improvement of $1.1 million or 177.7% compared to the loss from
operations of $619,000, inclusive of
$564,000 in stock-based compensation
and $42,000 depreciation expenses, in
the first quarter of fiscal 2018.
Excluding stock-based compensation and depreciation, Champions
reported income from operations of $681,000 for the first quarter of fiscal 2019
compared to a loss from operations, excluding stock-based
compensation and depreciation, of $13,000 in the first quarter of fiscal 2018 an improvement of $694,000.
Cost of oncology solutions was $3.1
million for the three months ended July 31, 2018, an increase of $441,000, or 16.7% compared to $2.6 million for the three months ended
July 31, 2017. The increase in cost
of sales was due to an increase in TOS studies. For the three
months ended July 31, 2018, gross
margin was 50.5% compared to 47.5% for the three months ended
July 31, 2017. Gross margin varies
based on timing differences between expense and revenue
recognition; however, the improvement can be attributed to
leveraging the fixed cost component of cost of sales against a
growing revenue base.
Research and development expense was $1.09 million for the three months ended
July 31, 2018, a decrease of
$30,000, or (2.7%), compared to
$1.12 million for the three months
ended July 31, 2017. Sales and
marketing expense for the three months ended July 31, 2018 was $518,000, a decrease of $165,000, or (24.2%), compared to $683,000 for the three months ended July 31, 2017. The decrease is mainly due to a
reduction in salary expenses. General and administrative expense
was $1.1 million for the three months
ended July 31, 2018 compared to
$1.2 million for the three months
ended July 31, 2017, a decrease of
$154,000 or (12.7%).
Net cash generated was $160,000
for the three months ended July 31,
2018. Net cash used for the same period last year was
$2.9 million. The improvement in cash
flow is the result of revenue growth.
The Company ended the quarter with $1.0
million of cash and cash equivalents and reiterated its
position that it does not need to raise capital to fund
operations.
Conference Call Information:
The Company will host a conference call today at 4:30 p.m. EDT (1:30 p.m.
PDT) to discuss its first quarter financial results. To
participate in the call, please call 877-407-8035 (domestic) or
201-689-8035 (international) 10 minutes ahead of the call and give
the verbal reference "Champions Oncology."
Full details of the Company's financial results will be
available Monday, September 17, 2018
in the Company's Form 10-Q at www.championsoncology.com.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP net loss to non-GAAP net
loss for an explanation of the amounts excluded to arrive at
non-GAAP net loss and related non-GAAP net loss per share amounts
for the three months ended July 31,
2018 and 2017. Non-GAAP financial measures provide investors
and management with supplemental measures of operating performance
and trends that facilitate comparisons between periods before and
after certain items that would not otherwise be apparent on a GAAP
basis. Certain unusual or non-recurring items that management does
not believe affect the Company's basic operations do not meet the
GAAP definition of unusual or non-recurring items. Non-GAAP net
loss and non-GAAP loss per share are not, and should not be viewed
as a substitute for similar GAAP items. Champions' defines non-GAAP
dilutive loss per share amounts as non-GAAP net loss divided by the
weighted average number of diluted shares outstanding. Champions'
definition of non-GAAP net loss and non-GAAP diluted loss per share
may differ from similarly named measures used by others.
About Champions Oncology, Inc.
Champions Oncology, Inc. is engaged in the development of
advanced technology solutions and services to personalize the
development and use of oncology drugs. The Company's
TumorGraft technology platform is a novel approach to personalizing
cancer care based upon the implantation of primary human tumors in
immune deficient mice followed by propagation of the resulting
engraftments, or TumorGrafts, in a manner that preserves the
biological characteristics of the original human tumor in order to
determine the efficacy of a treatment regimen. The Company
uses this technology in conjunction with related services to offer
solutions for two customer groups: Personalized Oncology
Solutions, in which results help guide the development of
personalized treatment plans, and Translational Oncology Solutions,
in which pharmaceutical and biotechnology companies seeking
personalized approaches to drug development can lower the cost and
increase the speed of developing new drugs. TumorGrafts are
procured through agreements with a number of institutions in the
U.S. and overseas as well as through Champions' Personalized
Oncology Solutions business. For more information, please visit
www.championsoncology.com.
This press release may contain "forward-looking statements"
(within the meaning of the Private Securities Litigation Act of
1995) that inherently involve risk and uncertainties.
Champions Oncology generally uses words such as "believe," "may,"
"could," "will," "intend," "expect," "anticipate," "plan," and
similar expressions to identify forward-looking statements.
One should not place undue reliance on these forward-looking
statements. The Company's actual results could differ
materially from those anticipated in the forward-looking statements
for many unforeseen factors. See Champions Oncology's Form
10-K for the fiscal year ended April 30,
2018 for a discussion of such risks, uncertainties and other
factors. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable, they
relate only to events as of the date on which the statements are
made, and Champions Oncology's future results, levels of activity,
performance or achievements may not meet these expectations.
The Company does not intend to update any of the forward-looking
statements after the date of this press release to conform these
statements to actual results or to changes in Champions Oncology's
expectations, except as required by law.
Champions
Oncology, Inc.
|
(Dollars in
thousands except per share amounts)
|
|
|
Reconciliation of
GAAP to Non-GAAP Net Income (Loss) (Unaudited)
|
|
|
|
Three Months
Ended
July
31,
|
|
2018
|
|
2017
|
Net income (loss) -
GAAP
|
$
|
482
|
|
|
$
|
(674)
|
|
Less:
|
|
|
|
Stock-based
compensation
|
83
|
|
|
564
|
|
Net income (loss) -
non-GAAP
|
$
|
565
|
|
|
$
|
(110)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP EPS to Non-GAAP EPS (Unaudited)
|
|
|
|
Three Months
Ended
July 31,
|
|
2018
|
|
2017
|
EPS – GAAP
|
$
|
0.04
|
|
|
$
|
(0.06)
|
|
Less:
|
|
|
|
Effect of stock-based
compensation on EPS
|
0.01
|
|
|
0.05
|
|
EPS -
non-GAAP
|
$
|
0.05
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
Three Months
Ended
July 31,
|
|
2018
|
|
2017
|
Oncology
solutions
|
6,225
|
|
|
5,033
|
|
|
|
|
|
Total operating
revenue
|
$
|
6,225
|
|
|
$
|
5,033
|
|
Cost of oncology
solutions
|
3,083
|
|
|
2,642
|
|
Research and
development
|
1,088
|
|
|
1,118
|
|
Sales and
marketing
|
518
|
|
|
683
|
|
General and
administrative
|
1,055
|
|
|
1,209
|
|
Income (Loss) from
Operations
|
$
|
481
|
|
|
$
|
(619)
|
|
Other Income
(Expense)
|
1
|
|
|
(51)
|
|
Net Income (Loss)
before provision for income taxes
|
$
|
482
|
|
|
$
|
(670)
|
|
Income
taxes
|
—
|
|
|
4
|
|
Net Income
(Loss)
|
$
|
482
|
|
|
$
|
(674)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets as of (Unaudited)
|
|
|
|
|
|
July 31,
2018
|
|
April
30,
2018
|
Cash and cash
equivalents
|
$
|
1,016
|
|
|
$
|
856
|
|
Accounts
receivable
|
3,769
|
|
|
3,917
|
|
Other current
assets
|
246
|
|
|
287
|
|
Total current
assets
|
5,031
|
|
|
5,060
|
|
|
|
|
|
Restricted
cash
|
150
|
|
|
150
|
|
Property and
equipment, net
|
2,425
|
|
|
2,083
|
|
Other long term
assets
|
116
|
|
|
116
|
|
Goodwill
|
669
|
|
|
669
|
|
Total
assets
|
$
|
8,391
|
|
|
$
|
8,078
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
2,485
|
|
|
$
|
2,723
|
|
Current portion of
capital lease
|
137
|
|
|
26
|
|
Deferred
revenue
|
4,263
|
|
|
4,704
|
|
Total current
liabilities
|
6,885
|
|
|
7,453
|
|
|
|
|
|
Deferred
rent
|
605
|
|
|
454
|
|
Capital lease, net of
current portion
|
148
|
|
|
17
|
|
Other Non-current
Liability
|
151
|
|
|
151
|
|
Total
liabilities
|
7,789
|
|
|
8,075
|
|
|
|
|
|
Stockholders'
equity
|
602
|
|
|
3
|
|
Total liabilities
and stockholders' equity
|
$
|
8,391
|
|
|
$
|
8,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
Three Months
Ended
July 31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
Net Income
(Loss)
|
$
|
482
|
|
|
$
|
(674)
|
|
Adjustments to
reconcile net cash provided by (used in) operations:
|
|
|
|
Stock-based
compensation expense
|
75
|
|
|
564
|
|
Issuance of common
stock for services
|
8
|
|
|
—
|
|
Depreciation and
amortization expense
|
118
|
|
|
42
|
|
Deferred
Rent
|
151
|
|
|
—
|
|
Allowance for
doubtful accounts
|
—
|
|
|
14
|
|
Changes in operating
assets and liabilities
|
(498)
|
|
|
(1,894)
|
|
Net cash provided
by (used in) operating activities
|
336
|
|
|
(1,948)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(211)
|
|
|
(910)
|
|
Net cash used in
investing activities:
|
(211)
|
|
|
(910)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from the
exercise of stock options
|
42
|
|
|
—
|
|
Capital lease
payments
|
(7)
|
|
|
(7)
|
|
Net cash provided
by (used in) financing activities:
|
35
|
|
|
(7)
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
160
|
|
|
(2,865)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
1,006
|
|
|
3,445
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
1,166
|
|
|
$
|
580
|
|
View original
content:http://www.prnewswire.com/news-releases/champions-oncology-reports-record-quarterly-revenue-of-6-2-million-300712218.html
SOURCE Champions Oncology, Inc.