Alpha Teknova, Inc. (“Teknova” or the “Company”) (Nasdaq: TKNO), a
leading producer of critical reagents for the research, discovery,
development, and commercialization of novel therapies, vaccines,
and molecular diagnostics, today announced financial results for
the first quarter ended March 31, 2023.
“Today we reported operating results in line with
our expectations for the first quarter of 2023,” said Stephen
Gunstream, President and Chief Executive Officer of Teknova. “We
continue to execute operationally, as we work to qualify our new
facility to produce GMP-grade products and launched our first,
proprietary product line. Our outlook for the full year is
unchanged and we remain confident in our ability to deliver revenue
growth in line with our long-term expectations during the second
half of 2023.”
“During the first quarter of 2023, we managed our
operating expenses and capital expenditures to plan. We continue to
expect full-year free cash outflow of approximately $30 million,”
explained Matt Lowell, Chief Financial Officer of Teknova.
Corporate and Financial
Updates
- First quarter 2023 total revenue of $9.1 million, up 16% from
the fourth quarter 2022 and down 18% from the first quarter
2022
- Qualification activities are underway in our new,
state-of-the-art manufacturing facility and we expect it to be
operational for the production of GMP-grade products by
mid-2023
- Launched our first, proprietary product line,
AAV-Tek™ Solutions, specifically created to address critical
pain points in the AAV gene therapy development workflow
- Released a first-of-its-kind product in this line — the AAV-Tek
AEX Buffer Screening Kit — that could save months of process
development time by helping gene therapy developers to identify the
ideal buffer formulations for use during AAV downstream
processing
- Cash position of $30.2 million and gross debt of $22.1 million
at the end of the first quarter 2023
Revenue for the First Quarter
|
|
For the Three Months Ended March 31, |
|
(Dollars in thousands) |
|
2023 |
|
|
2022 |
|
Lab Essentials |
|
$ |
7,257 |
|
|
$ |
6,975 |
|
Clinical
Solutions |
|
|
1,609 |
|
|
|
3,812 |
|
Other |
|
|
255 |
|
|
|
360 |
|
Total
revenue |
|
$ |
9,121 |
|
|
$ |
11,147 |
|
First Quarter 2023 Financial
Results
Total revenue for the first quarter 2023 was $9.1
million, down 18% compared to $11.1 million in the first quarter
2022. Lab Essentials revenue was $7.3 million in the first quarter
2023, up 4% compared to $7.0 million in the first quarter 2022.
Clinical Solutions revenue was $1.6 million, down 58% compared to
$3.8 million in the first quarter 2022.
Gross profit for the first quarter 2023 was $2.4
million, compared to $5.3 million in the first quarter 2022. Gross
margin for the first quarter 2023 was 26.6%, compared to 48.0% in
the first quarter 2022. The lower gross margin for the first
quarter 2023 compared to the first quarter 2022 was primarily
driven by the decrease in revenue and the associated lower
absorption of fixed manufacturing labor and overhead costs.
Operating expenses for the first quarter 2023 were
$11.4 million, compared to $11.2 million in the first quarter 2022.
Excluding the one-time, non-recurring charge related to the
reduction in workforce of $0.7 million incurred during the first
quarter 2023, operating expenses decreased compared to the first
quarter 2022. The decrease was driven by reduced spending,
primarily in professional fees and occupancy costs, partially
offset by higher wages and stock-based compensation expense.
Net loss for the first quarter 2023 was $8.8
million, or negative $0.31 per diluted share, compared to $5.5
million, or negative $0.20 per diluted share, for the first quarter
2022.
Adjusted EBITDA for the first quarter 2023 was
negative $6.1 million, compared to negative $4.3 million for the
first quarter 2022. Free Cash Flow was negative $12.0 million for
the first quarter 2023, compared to negative $11.1 million for the
first quarter 2022.
Reiterates 2023 Outlook
Teknova is reiterating its fiscal 2023 outlook for
revenue and free cash outflow. The Company continues to anticipate
total revenue of $42 million to $46 million for the fiscal year
ending December 31, 2023 (“2023”), which assumes roughly flat
performance in Lab Essentials and 20-50% growth in Clinical
Solutions. The Company also continues to anticipate free cash
outflow of approximately $30 million for 2023.
Conference Call and Webcast
Teknova will host a webcast and conference call on
Wednesday, May 10, 2023, beginning at 5:30 p.m. ET. Participants
can access the live webcast on the Investor Relations section of
the Teknova website and at this link:
https://edge.media-server.com/mmc/p/tquygjuv. To receive a PIN for
dialing in, participants can register for the webcast via this
link:
https://register.vevent.com/register/BIaab243465e1942deb84daf92e4eb35d8.
The webcast will be available for replay on the Company’s website
approximately two hours after the event.
About Teknova
Teknova makes solutions possible. Since 1996,
Teknova has been innovating the manufacture of critical reagents
for the life sciences industry to accelerate the discovery and
development of novel therapies that will help people live longer,
healthier lives. We offer fully customizable solutions for every
stage of the workflow, supporting industry leaders in cell and gene
therapy, molecular diagnostics, and synthetic biology. Our fast
turnaround of high-quality agar plates, microbial culture media,
buffers, reagents, and water helps our customers scale seamlessly
from RUO to GMP. Headquartered in Hollister, California, with over
200,000 square feet of state-of-the-art facilities, Teknova’s
modular manufacturing platform was designed by our team of
scientists, engineers, and quality control experts to efficiently
produce the foundational ingredients for the discovery and
commercialization of novel therapies.
Non-GAAP Financial Measures
This press release contains financial measures
that have not been calculated in accordance with U.S. generally
accepted accounting principles (GAAP). Teknova uses the following
non-GAAP financial measures in assessing the performance of its
business and the effectiveness of its business strategies: (a)
Adjusted EBITDA and (b) Free Cash Flow.
Teknova defines Adjusted EBITDA as net loss
adjusted for interest income (expense), net, benefit from income
taxes, depreciation expense, amortization of intangible assets, and
stock-based compensation expense. Adjusted EBITDA reflects further
adjustments to eliminate the impact of certain items, including
certain non-cash and other items that Teknova does not consider
representative of its ongoing operating performance.
Teknova defines Free Cash Flow as cash used in
operating activities less purchases of property, plant, and
equipment.
Teknova presents Adjusted EBITDA and Free Cash
Flow in this press release because Teknova believes that analysts,
investors, and other interested parties frequently use these
measures to evaluate companies in Teknova’s industry and that such
measures facilitate comparisons on a consistent basis across
reporting periods. Teknova also believes such measures are helpful
in highlighting trends in Teknova’s operating results because they
exclude items that are not indicative of Teknova’s core operating
performance. Investors should consider non-GAAP financial measures
in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP.
The non-GAAP financial measures presented by Teknova may be
different from the non-GAAP financial measures used by other
companies.
A full reconciliation of these non-GAAP measures
to the most comparable GAAP measures is included at the end of this
release.
Forward-Looking Statements
Statements in this press release about future
expectations, plans and prospects, as well as any other statements
regarding matters that are not historical facts, may constitute
“forward-looking statements.” These statements include, but are not
limited to, statements relating to Teknova’s anticipated total
revenue, including our expectations for 2023 revenue guidance,
expected growth in Lab Essentials and Clinical Solutions, ongoing
capacity expansion, new research and development products,
prospects, including to achieve profitability, strategy of managing
operating expenses, and long-term growth strategy. The words,
without limitation, “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “will,” “would” and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these or similar identifying words. These forward-looking
statements are based on management’s current expectations and
beliefs and are subject to uncertainties and factors, all of which
are difficult to predict and many of which are beyond Teknova’s
control and could cause actual results to differ materially and
adversely from those described in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
demand for Teknova’s products (including the potential delay or
pausing of customer orders); Teknova’s assessment of fundamental
indicators of future demand across its target customer base;
Teknova’s ability to expand its production, commercial, and
research and development capabilities; Teknova’s cash flows and
revenue growth rate; Teknova’s supply chain, sourcing,
manufacturing and warehousing; inventory management; risks related
to global economic and marketplace uncertainties, including those
related to the impact of the COVID-19 pandemic; reliance on a
limited number of customers for a high percentage of Teknova’s
revenue; potential acquisitions and integration of other companies;
and other factors discussed in the “Risk Factors” section of
Teknova’s most recent periodic reports filed with the Securities
and Exchange Commission (“SEC”), including in Teknova’s Annual
Report on Form 10-K for the year ended December 31, 2022, and
subsequent Quarterly Reports on Form 10-Q filed with the SEC, all
of which you may obtain for free on the SEC’s website at
www.sec.gov. Although Teknova believes that the expectations
reflected in its forward-looking statements are reasonable, Teknova
does not know whether its expectations will prove correct. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, even if
subsequently made available by Teknova on its website or otherwise.
Teknova does not undertake any obligation to update, amend or
clarify these forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be
required under applicable securities laws.
ALPHA TEKNOVA, INC.
Condensed Statements of Operations
(Unaudited) (In thousands, except share
and per share data)
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
9,121 |
|
|
$ |
11,147 |
|
Cost of
sales |
|
|
6,698 |
|
|
|
5,798 |
|
Gross
profit |
|
|
2,423 |
|
|
|
5,349 |
|
Operating
expenses: |
|
|
|
|
|
|
Research and development |
|
|
1,395 |
|
|
|
2,013 |
|
Sales and marketing |
|
|
2,343 |
|
|
|
1,597 |
|
General and administrative |
|
|
7,345 |
|
|
|
7,295 |
|
Amortization of intangible assets |
|
|
286 |
|
|
|
287 |
|
Total operating expenses |
|
|
11,369 |
|
|
|
11,192 |
|
Loss from
operations |
|
|
(8,946 |
) |
|
|
(5,843 |
) |
Other income
(expenses), net |
|
|
|
|
|
|
Interest income (expense), net |
|
|
93 |
|
|
|
(13 |
) |
Other income (expense), net |
|
|
18 |
|
|
|
— |
|
Total other income (expenses), net |
|
|
111 |
|
|
|
(13 |
) |
Loss before
income taxes |
|
|
(8,835 |
) |
|
|
(5,856 |
) |
Benefit from income taxes |
|
|
(18 |
) |
|
|
(359 |
) |
Net
loss |
|
$ |
(8,817 |
) |
|
$ |
(5,497 |
) |
Net loss per
share—basic and diluted |
|
$ |
(0.31 |
) |
|
$ |
(0.20 |
) |
Weighted
average shares used in computing net loss per share—basic and
diluted |
|
|
28,181,457 |
|
|
|
28,030,971 |
|
|
|
|
|
|
|
|
|
|
ALPHA TEKNOVA, INC.
Condensed Balance Sheets
(Unaudited) (In thousands)
|
|
As of March
31, |
|
|
As of
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
30,215 |
|
|
$ |
42,236 |
|
Accounts receivable, net |
|
|
4,777 |
|
|
|
4,261 |
|
Inventories, net |
|
|
12,151 |
|
|
|
12,247 |
|
Income taxes receivable |
|
|
22 |
|
|
|
22 |
|
Prepaid expenses and other current assets |
|
|
2,466 |
|
|
|
2,374 |
|
Total current assets |
|
|
49,631 |
|
|
|
61,140 |
|
Property,
plant, and equipment, net |
|
|
53,733 |
|
|
|
51,577 |
|
Operating
right-of-use lease assets |
|
|
18,237 |
|
|
|
19,736 |
|
Intangible
assets, net |
|
|
17,270 |
|
|
|
17,556 |
|
Other
non-current assets |
|
|
2,150 |
|
|
|
2,252 |
|
Total assets |
|
$ |
141,021 |
|
|
$ |
152,261 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,885 |
|
|
$ |
2,449 |
|
Accrued liabilities |
|
|
4,758 |
|
|
|
6,203 |
|
Current portion of operating lease liabilities |
|
|
2,011 |
|
|
|
2,223 |
|
Total current liabilities |
|
|
8,654 |
|
|
|
10,875 |
|
Deferred tax
liabilities |
|
|
1,204 |
|
|
|
1,223 |
|
Other
accrued liabilities |
|
|
169 |
|
|
|
191 |
|
Long-term
debt, net |
|
|
22,036 |
|
|
|
21,976 |
|
Long-term
operating lease liabilities |
|
|
16,871 |
|
|
|
18,111 |
|
Total liabilities |
|
|
48,934 |
|
|
|
52,376 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
155,910 |
|
|
|
154,891 |
|
Accumulated deficit |
|
|
(63,823 |
) |
|
|
(55,006 |
) |
Total stockholders’ equity |
|
|
92,087 |
|
|
|
99,885 |
|
Total liabilities and stockholders’ equity |
|
$ |
141,021 |
|
|
$ |
152,261 |
|
|
|
|
|
|
|
|
|
|
ALPHA TEKNOVA, INC.
Condensed Statements of Cash Flows
(Unaudited) (In thousands)
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(8,817 |
) |
|
$ |
(5,497 |
) |
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Bad debt expense |
|
|
2 |
|
|
|
7 |
|
Inventory reserve |
|
|
(144 |
) |
|
|
(4 |
) |
Depreciation and amortization |
|
|
1,130 |
|
|
|
751 |
|
Stock-based compensation |
|
|
1,010 |
|
|
|
787 |
|
Deferred taxes |
|
|
(19 |
) |
|
|
(360 |
) |
Amortization of debt financing costs |
|
|
90 |
|
|
|
46 |
|
Non-cash lease expense |
|
|
47 |
|
|
|
106 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(518 |
) |
|
|
(1,319 |
) |
Inventories |
|
|
240 |
|
|
|
(1,028 |
) |
Prepaid expenses and other current assets |
|
|
271 |
|
|
|
547 |
|
Other non-current assets |
|
|
102 |
|
|
|
(216 |
) |
Accounts payable |
|
|
(386 |
) |
|
|
237 |
|
Accrued liabilities |
|
|
(670 |
) |
|
|
762 |
|
Other |
|
|
(22 |
) |
|
|
(20 |
) |
Cash used in operating activities |
|
|
(7,684 |
) |
|
|
(5,201 |
) |
Investing activities: |
|
|
|
|
|
|
Purchase of
property, plant, and equipment |
|
|
(4,312 |
) |
|
|
(5,917 |
) |
Cash used in investing activities |
|
|
(4,312 |
) |
|
|
(5,917 |
) |
Financing activities: |
|
|
|
|
|
|
Payment of
offering costs |
|
|
(34 |
) |
|
|
— |
|
Proceeds
from exercise of stock options |
|
|
9 |
|
|
|
55 |
|
Cash (used in) provided by financing activities |
|
|
(25 |
) |
|
|
55 |
|
Change in
cash and cash equivalents |
|
|
(12,021 |
) |
|
|
(11,063 |
) |
Cash and
cash equivalents at beginning of period |
|
|
42,236 |
|
|
|
87,518 |
|
Cash and
cash equivalents at end of period |
|
$ |
30,215 |
|
|
$ |
76,455 |
|
|
|
|
|
|
|
|
|
|
ALPHA TEKNOVA, INC.
Reconciliation of Non-GAAP Measures to the Most Comparable
GAAP Measures (Unaudited) (In
thousands)
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Net loss – as reported |
|
$ |
(8,817 |
) |
|
$ |
(5,497 |
) |
Add
back: |
|
|
|
|
|
|
Interest income (expense), net |
|
|
93 |
|
|
|
(13 |
) |
Benefit from income taxes |
|
|
(18 |
) |
|
|
(359 |
) |
Depreciation expense |
|
|
844 |
|
|
|
464 |
|
Amortization of intangible assets |
|
|
286 |
|
|
|
287 |
|
EBITDA |
|
$ |
(7,798 |
) |
|
$ |
(5,092 |
) |
Other and
one-time expenses: |
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,010 |
|
|
|
787 |
|
Severance pay and other termination benefits |
|
|
725 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(6,063 |
) |
|
$ |
(4,305 |
) |
|
|
For the Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash used in operating activities |
|
$ |
(7,684 |
) |
|
$ |
(5,201 |
) |
Purchase of
property, plant, and equipment |
|
|
(4,312 |
) |
|
|
(5,917 |
) |
Free
Cash Flow |
|
$ |
(11,996 |
) |
|
$ |
(11,118 |
) |
Investor Contacts
Matt Lowell
Chief Financial Officer
matt.lowell@teknova.com
+1 831-637-1100
Media Contact
Jenn Henry
Senior Vice President, Marketing
jenn.henry@teknova.com
+1 831-313-1259
Sara Michelmore
MacDougall Advisors
smichelmore@macdougall.bio
+1 781-235-3060
Alpha Teknova (NASDAQ:TKNO)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Alpha Teknova (NASDAQ:TKNO)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024