HACKENSACK, N.J., July 26, 2018 /PRNewswire/ -- Champions
Oncology, Inc. (Nasdaq: CSBR), engaged in the development of
advanced technology solutions and services to personalize the
development and use of oncology drugs, today announced its
financial results for the fourth fiscal quarter and 12 months ended
April 30, 2018.
Fiscal Year 2018 Financial and Recent Business
Highlights:
- Record annual revenue of $20.2
million, an increase of 31.3% year-over-year
- Record Translational Oncology Services ("TOS") revenue of
$18.8 million, an increase of 37.2%
year-over-year
- Record annual TOS bookings
- Successfully transitioned to our own new lab facility, doubling
capacity, expanding revenue opportunities and realizing material
cost savings
- Forecast of at least 20% revenue growth in fiscal 2019 and
sustained, quarterly operational profitability
Ronnie Morris, CEO of Champions,
commented, "Exceeding $20 million in
revenue is a significant milestone for our company, and our
increasingly robust bookings and a growing pipeline of identified
opportunities reinforce our optimism for the coming quarters and
for revenue growth that will again exceed 20% this fiscal year.
There is tremendous energy within our team about the opportunities
in the market and the level of engagement from both new and
existing customers."
"In addition, we made meaningful progress towards achieving our
goal of sustained, long-term profitability by growing our business
organically and leveraging the scale of our operations," added Mr.
Morris. "Our core business is built on a highly leverageable,
scalable business model that enabled us to grow our revenue by more
than 30% in fiscal 2018, well ahead of our targeted 20% growth, and
manage costs and operating expense to a modest increase of 4.2%. We
anticipate delivering operational profitability during each quarter
of fiscal 2019."
Fourth Fiscal Quarter Financial Results
For the fourth quarter of fiscal 2018, revenue increased 32.3%
to $4.9 million compared to
$3.7 million for the fourth quarter
of fiscal 2017. Total operating expenses for the fourth quarter of
fiscal 2018 were $5.5 million
compared to $6.1 million for the
fourth quarter of fiscal 2017, a decrease of $593,000 or (9.7%). For the fourth quarter
of fiscal 2018, Champions reported a loss from operations of
$594,000, which includes $172,000 in stock-based compensation and
$110,000 in depreciation, an
improvement of $1.8 million or
(75.1%), compared to the loss from operations of $2.4 million, inclusive of $761,000 in stock-based compensation and
$35,000 depreciation expense, in the
fourth quarter of fiscal 2017. Excluding stock based compensation
and depreciation, Champions reported a loss from operations for the
quarter of $312,000; however, as
forecasted for the full year, Champions reported income from
operations of $40,000 and is
positioned for sustained quarterly operational profitability going
forward.
Cost of oncology solutions was $2.8
million for the three months ended April 30, 2018, an increase of $248,000, or 9.6% compared to $2.6 million for the three months ended
April 30, 2017. The increase in cost
of sales was due to an increase in TOS studies. For the three
months ended April 30, 2018, gross
margin was 42.7% compared to 30.9% for the three months ended
April 30, 2017. Gross margin
varies based on timing differences between expense and revenue
recognition; however, the improvement can be attributed to
leveraging cost of sales against a growing revenue base.
Research and development expense was $1.1
million for both the three months ended April 30, 2018 and 2017. Sales and marketing
expense for the three months ended April 30,
2018 was $715,000, a decrease
of $177,000, or (19.8%) compared to
$892,000 for the three months ended
April 30, 2017. The decrease is
mainly due to a reduction of payroll and travel expenses. General
and administrative expense was $888,000 for the three months ended April 30, 2018 compared to $1.6 million for the three months ended
April 30, 2017, a decrease of
$682,000 or (43.4%). The decrease is
mainly due to a reduction in stock-based compensation expense.
Year-to-Date Financial Results
For the twelve months of fiscal 2018, revenue increased 31.3% to
$20.2 million, as compared to
$15.4 million for the twelve months
of fiscal 2017. For the twelve months of fiscal 2018, total
operating expenses decreased (2.8%) to $21.6
million, as compared to $22.2
million for the twelve months of fiscal 2017. The decrease
is mainly due to a decrease in stock-based compensation.
For the twelve months ended April 30,
2018, Champions reported a loss from operations of
$1.4 million, which includes
$1.0 million in stock-based
compensation and $360,000 in
depreciation, an improvement of $5.5
million or (80.1%), compared to the loss from operations of
$6.8 million, inclusive of
$2.7 million in stock-based
compensation and $141,000
depreciation, for the twelve months ended April 30, 2017. Excluding stock-based
compensation and depreciation, Champions reported operating income
of $40,000 for the twelve months
ended April 30, 2018.
Net cash used in operations was $1.2
million and $2.8 million for
the twelve months ended April 30,
2018 and 2017, respectively, a decrease of $1.6 million or (56.9%). The reduction in cash
burn is the result of our revenue growth and expense
management.
Cost of oncology solutions was $10.6
million for the twelve months ended April 30, 2018 compared to $9.7 million for the twelve months ended
April 30, 2017, an increase of
$850,000 or 8.8%. The increase in
cost of sales was due to an increase in TOS studies. Gross margin
was 47.9% for the twelve months ended April
30, 2018 compared to 37.0% for the twelve months ended
April 30, 2017.The increase in
cost of sales was due to an increase in TOS studies. The
improvement in gross margin was due to higher TOS revenue leveraged
off the fixed cost component of the lab and effective management of
the variable lab costs. Gross margin varies based on timing
differences between expense and revenue recognition. While the
gross margin improved, there are expenses incurred and recognized
in advance of future revenue.
Research and development expense was $4.4
million for the twelve months ended April 30, 2018 an increase of $108,000, or 2.5% compared to $4.3 million for the twelve months ended
April 30, 2017. Sales and marketing
expense for the twelve months ended April
30, 2018 was $2.6
million, a decrease of $691,000, or (21.2%) compared to $3.3 million for the twelve months ended
April 2017. The decrease is mainly
due to reduction in salary and travel expenses. General and
administrative expense was $4.1
million for the twelve months ended April 30, 2018, a decrease of 892,000 or (18.0%)
compared to $5.0 million for the
twelve months ended April 30, 2017.
The decrease is primarily due to a reduction in stock-based
compensation expense.
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 fourth quarter financial results. To
participate in the call, please call 877-407-8035 (domestic) or
201-689-8035 (international) ten minutes ahead of the call and give
the verbal reference "Champions Oncology."
Full details of the Company's financial results will be
available Monday July 30, 2018 in the
Company's Form 10-K 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 and twelve months ended April
30, 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 Gain (Loss) (Unaudited)
|
|
|
|
|
|
Three Months
Ended
April
30,
|
|
Twelve Months
Ended
April
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net loss -
GAAP
|
$
|
(662)
|
|
|
$
|
(2,424)
|
|
|
$
|
(1,505)
|
|
|
$
|
(6,884)
|
|
Less:
|
|
|
|
|
|
|
|
Stock-based
compensation
|
172
|
|
|
761
|
|
|
1,034
|
|
|
2,662
|
|
Net loss -
non-GAAP
|
$
|
(490)
|
|
|
$
|
(1,663)
|
|
|
$
|
(471)
|
|
|
$
|
(4,222)
|
|
Reconciliation of
GAAP EPS to Non-GAAP EPS (Unaudited)
|
|
|
|
|
|
Three Months
Ended
April 30,
|
|
Twelve Months
Ended
April 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
EPS – GAAP
|
$
|
(0.06)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.64)
|
|
Less:
|
|
|
|
|
|
|
|
Effect of stock-based
compensation on EPS
|
0.02
|
|
|
0.07
|
|
|
0.09
|
|
|
0.25
|
|
EPS -
non-GAAP
|
$
|
(0.04)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.39)
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
Three Months
Ended
April 30,
|
|
Twelve Months
Ended
April 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Oncology
Solutions
|
4,922
|
|
|
3,720
|
|
|
20,241
|
|
|
15,411
|
|
|
|
|
|
|
|
|
|
Total operating
revenue
|
$
|
4,922
|
|
|
$
|
3,720
|
|
|
$
|
20,241
|
|
|
$
|
15,411
|
|
Cost of oncology
solutions
|
2,819
|
|
|
2,571
|
|
|
10,553
|
|
|
9,703
|
|
Research and
development
|
1,094
|
|
|
1,076
|
|
|
4,401
|
|
|
4,293
|
|
Sales and
marketing
|
715
|
|
|
892
|
|
|
2,570
|
|
|
3,261
|
|
General and
administrative
|
888
|
|
|
1,570
|
|
|
4,071
|
|
|
4,963
|
|
Loss from
Operations
|
$
|
(594)
|
|
|
$
|
(2,389)
|
|
|
$
|
(1,354)
|
|
|
$
|
(6,809)
|
|
Other
(Expense)
|
(24)
|
|
|
(23)
|
|
|
(88)
|
|
|
(56)
|
|
Net Loss before
provision for income taxes
|
$
|
(618)
|
|
|
$
|
(2,412)
|
|
|
$
|
(1,442)
|
|
|
$
|
(6,865)
|
|
Income
taxes
|
44
|
|
|
12
|
|
|
63
|
|
|
19
|
|
Net
Loss
|
$
|
(662)
|
|
|
$
|
(2,424)
|
|
|
$
|
(1,505)
|
|
|
$
|
(6,884)
|
|
Condensed
Consolidated Balance Sheets as of (Unaudited)
|
|
|
|
|
|
April
30,
2018
|
|
April
30,
2017
|
Cash and cash
equivalents
|
$
|
856
|
|
|
$
|
3,295
|
|
Accounts
receivable
|
3,917
|
|
|
2,274
|
|
Other current
assets
|
287
|
|
|
300
|
|
Total current
assets
|
5,060
|
|
|
5,869
|
|
|
|
|
|
Restricted
cash
|
150
|
|
|
150
|
|
Property and
equipment, net
|
2,083
|
|
|
1,216
|
|
Other long term
assets
|
116
|
|
|
107
|
|
Goodwill
|
669
|
|
|
669
|
|
Total
assets
|
$
|
8,078
|
|
|
$
|
8,011
|
|
Accounts payable and
accrued liabilities
|
$
|
2,778
|
|
|
$
|
2,537
|
|
Deferred
revenue
|
4,704
|
|
|
4,910
|
|
Total current
liabilities
|
7,482
|
|
|
7,447
|
|
Other Non-current
Liability
|
621
|
|
|
164
|
|
Stockholders' equity
(deficit)
|
(25)
|
|
|
400
|
|
Total liabilities
and stockholders' equity (deficit)
|
$
|
8,078
|
|
|
$
|
8,011
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
Twelve Months
Ended
April 30,
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
Net Loss
|
$
|
(1,505)
|
|
|
$
|
(6,884)
|
|
Adjustments to
reconcile net cash used in operations:
|
|
|
|
Stock-based
compensation expense
|
1,004
|
|
|
2,662
|
|
Issuance of common
stock for services
|
30
|
|
|
44
|
|
Depreciation and
amortization expense
|
360
|
|
|
168
|
|
Deferred
compensation
|
7
|
|
|
—
|
|
Allowance for
doubtful accounts
|
(44)
|
|
|
24
|
|
Deferred
Rent
|
454
|
|
|
—
|
|
Changes in operating
assets and liabilities
|
(1,532)
|
|
|
1,146
|
|
Net cash used in
operating activities
|
(1,226)
|
|
|
(2,840)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(1,229)
|
|
|
(766)
|
|
Gain on disposal of
fixed assets
|
3
|
|
|
—
|
|
Net cash used in
investing activities:
|
(1,226)
|
|
|
(766)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Public Offering June
2016, net of financing costs of $742,000
|
—
|
|
|
4,340
|
|
Capital lease
payments
|
(25)
|
|
|
(24)
|
|
Proceeds from
exercise of stock options
|
38
|
|
|
—
|
|
Net cash provided
by financing activities:
|
13
|
|
|
4,316
|
|
|
|
|
|
(Decrease) increase
in cash and cash equivalents
|
(2,439)
|
|
|
710
|
|
Cash and cash
equivalents, beginning of period
|
3,295
|
|
|
2,585
|
|
Cash and cash
equivalents, end of period
|
$
|
856
|
|
|
$
|
3,295
|
|
View original
content:http://www.prnewswire.com/news-releases/champions-oncology-reports-record-annual-revenue-exceeding-20m-for-fiscal-year-ended-april-30-2018-300687303.html
SOURCE Champions Oncology, Inc.