HACKENSACK, N.J., Sept. 10, 2015 /PRNewswire/ -- Champions
Oncology, Inc. (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 first quarter ended July 31, 2015.
First Quarter and Recent Business Highlights:
- Completed uplisting to NASDAQ Capital Market
- Filed patent applications to develop humanized mice to be used
in immune-oncology
- Announced additions to management team
Joel Ackerman, Champions Oncology
CEO, stated, "We continue to make progress in building the
company. As the recognition of the value of patient derived
xenografts grows, we are being presented with many opportunities to
expand our platform into new areas. We are pursuing many of
these opportunities in areas including immune oncology and clinical
applications for our TOS customers."
Financial Results
For the first quarter of 2015, revenue was $2.8 million, as compared to $1.9 million for the three months ended
July 31, 2014, an increase of
$892,000 or 47.6%. Total operating
expenses for the first quarter 2015 were $5.7 million, as compared to $5.6 million for the three months ended
July 31, 2014, an increase of
$78,000 or 1.4%.
For the first quarter of 2015, Champions reported a loss from
operations of $2.9 million as
compared to a loss from operations of $3.7
million for the three months ended July 31, 2014. Excluding stock-based compensation
of $775,000 and $808,000 for the three months ended July 31, 2015 and 2014, Champions recognized a
net loss of $2.1 million and
$2.7 million respectively.
Operating Results
Personalized Oncology Solutions (POS):
POS revenue was $485,000 and
$341,000 for the three months ended
July 31, 2015 and 2014, respectively,
an increase of $144,000 or 42.2%.
Core revenue from its Champions TumorGraft® technology platform
decreased $16,000 or (4.9%). This
decrease is due to a 21.6% decline in implant revenue offset by a
6.3% increase in panel revenue. Non-core revenue increased
$160,000.
POS cost of sales was $661,000 and
$757,000 for the three months ended
July 31, 2015 and 2014, respectively,
a decrease of $96,000 or (12.7%). For
the three months ended July 31, 2015
and 2014, gross margins for POS were (36.3%) and (122%),
respectively. The improvement in gross margin is attributed to the
increase in higher margin, non-core revenue and cost reductions in
the core business.
Translational Oncology Solutions (TOS):
TOS revenue was $2.3 million and
$1.6 million for the three months
ended July 31, 2015 and 2014,
respectively, an increase of $700,000, or 48.8%. The increase is the result of
increased bookings in prior quarters due to the expansion of the
TOS sales team and the growth of the platform.
TOS cost of sales was $1.6 million
and $965,000 for the three months
ended July 31, 2015 and 2014,
respectively, an increase of $647,000, or 67%. For the three months ended
July 31, 2015 and 2014, gross margin
for TOS was 31% and 38.6%, respectively.
Research and development expense was $1.1
million and $1.4 million for
three months ended July 31, 2015 and
2014, respectively, a decrease of $300,000, or (22.7%). The decrease is due to
lower one-time expenses in genomic characterization of our
Champions TumorGraft Bank. Sales and marketing expense for both the
three months ended July 31, 2015 and
2014 was $1 million. General and
administrative expense for the three months July 31, 2015 and 2014 was $1.3 million and $1.46
million, respectively a decrease of $145,000, or (9.9%). The decline is mainly due to
a decrease in stock based compensation expense of $105,000.
Conference Call Information
The Company will host a conference call today at 4:00 p.m. EDT (1:00 p.m.
PDT) to discuss its first quarter 2016 financial results. To
access the conference call, domestic participants should dial
800-875-3456, Canadian participants should dial 800-648-0973, and
international participants should dial 302-607-2001. The
participant passcode is "Champions Oncology."
Full details of the Company's financial results will be
available Friday, September 11, 2015
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,
2015 and 2014. 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 net 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 Champions
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 Champions 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,
2015 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 Loss (Unaudited):
|
|
|
|
Three Months
Ended
July 31,
|
2015
|
|
2014
|
Net loss -
GAAP
|
($2,913)
|
|
($3,548)
|
Less:
|
|
|
|
Stock-based
compensation
|
775
|
|
808
|
Net (loss) income -
non-GAAP
|
($2,138)
|
|
($2,740)
|
|
|
|
|
Reconciliation of
GAAP EPS to Non-GAAP EPS (Unaudited):
|
|
|
|
Three Months
Ended
July 31,
|
2015
|
|
2014
|
Basic and diluted EPS
- GAAP
|
($0.33)
|
|
($0.64)
|
Less:
|
|
|
|
Effect of
stock-based compensation on EPS
|
0.09
|
|
0.14
|
Basic and diluted EPS
- non-GAAP
|
($0.24)
|
|
($0.50)
|
|
|
|
|
Condensed
Consolidated Statements of Operations (Unaudited):
|
|
|
|
Three Months
Ended
July 31,
|
2015
|
|
2014
|
POS operating
revenue
|
$485
|
|
$341
|
TOS operating
revenue
|
2,337
|
|
1,571
|
Total
operating revenue
|
$2,822
|
|
$1,912
|
|
|
|
|
Cost of
POS
|
661
|
|
757
|
Cost of
TOS
|
1,612
|
|
965
|
Research and
development
|
1,100
|
|
1,423
|
Sales and
marketing
|
1,029
|
|
1,034
|
General and
administrative
|
1,317
|
|
1,462
|
|
|
|
|
Loss from
Operations
|
($2,897)
|
|
($3,729)
|
|
|
|
|
Other (Expense)
Income
|
(10)
|
|
186
|
|
|
|
|
Net Loss
before income tax expense
|
($2,907)
|
|
($3,543)
|
Income
taxes
|
6
|
|
5
|
Net
Loss
|
($2,913)
|
|
($3,548)
|
|
|
|
|
Condensed
Consolidated Balance Sheets as of (Unaudited):
|
|
|
July
31,
|
|
April
30,
|
|
2015
|
|
2015
|
Cash and cash
equivalents
|
$6,760
|
|
$9,357
|
Accounts
receivable
|
1,458
|
|
1,060
|
Other current
assets
|
366
|
|
346
|
Total current
assets
|
8,584
|
|
10,763
|
|
|
|
|
Restricted
cash
|
150
|
|
163
|
Property and
equipment, net
|
445
|
|
452
|
Goodwill
|
669
|
|
669
|
Total
assets
|
$9,848
|
|
$12,047
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$1,852
|
|
$1,787
|
Deferred
revenue
|
1,907
|
|
2,009
|
Total
current liabilities
|
3,759
|
|
3,796
|
|
|
|
|
Other Non-current
liabilitiy
|
186
|
|
192
|
Stockholders'
equity
|
5,903
|
|
8,059
|
Total
liabilities and stockholders' equity
|
$9,848
|
|
$12,047
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited):
|
|
|
Three Months
Ended
|
July
31,
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
Net Loss
|
($2,913)
|
|
($3,548)
|
Adjustments to
reconcile net cash used in operations:
|
|
|
|
Stock-based
compensation expense
|
775
|
|
808
|
Depreciation
expense
|
37
|
|
56
|
Change in fair value
of warrant liability
|
-
|
|
(155)
|
Changes in operating
assets and liabilities
|
(442)
|
|
51
|
Net cash used in
operating activities
|
(2,543)
|
|
(2,788)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(29)
|
|
(33)
|
Net cash used in
investing activities
|
(29)
|
|
(33)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Payment of issuance
costs related to 2015 Private Placement
|
(18)
|
|
-
|
Capital lease
payments
|
(7)
|
|
-
|
Net cash used in
financing activities
|
(25)
|
|
-
|
|
|
|
|
Exchange rate effect
on cash and cash equivalents
|
-
|
|
(18)
|
Increase (decrease)
in cash and cash equivalents
|
(2,597)
|
|
(2,839)
|
Cash and cash
equivalents, beginning of period
|
9,357
|
|
9,561
|
Cash and cash
equivalents, end of period
|
$6,760
|
|
$6,722
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/champions-oncology-reports-results-for-the-first-quarter-ended-july-31-2015-300141169.html
SOURCE Champions Oncology, Inc.