HACKENSACK, N.J., Sept. 9, 2016 /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 first quarter ended July 31, 2016.
First Quarter and Recent Business Highlights:
- First quarter revenue of $3.7
million; significantly above revenue guidance range of
$3.25 - $3.5 million
- Reaffirms full year revenue guidance for FY2017 of $16 - $18 million
- Delivered third consecutive quarter of record TOS bookings
- Signed significant AML study with major pharmaceutical
company
- Signed second co-clinical trial
- Enrolled first patient in co-clinical trial
Joel Ackerman, Champions Oncology
CEO, stated, "we continued to build momentum achieving another
quarter of strong revenue growth and delivering our third
consecutive quarter of record TOS bookings, setting the stage for
continued positive results heading into next quarter.. We
have produced this revenue growth while controlling our expenses,
putting us on a path to cash flow breakeven by the end of our
fiscal year."
Financial Results
For the first quarter of 2017, revenue was $3.7 million, as compared to $2.8 million for the first quarter 2016, an
increase of 30%. Total operating expense for the first quarter 2017
was $6.2 million as compared to
$5.7 million for the first quarter
2016, an increase of 8.3%.
For the first quarter of 2017 and 2016, Champions reported a
loss from operations of $2.5 million
and $2.9 million, respectively.
Excluding stock-based compensation of $1.1
million and $775,000 for the
three months ended July 31, 2016 and
2015, Champions recognized a loss from operations of $1.4 million and $2.1
million, respectively.
Operating Results
Translational Oncology Solutions (TOS):
TOS revenue was $3.2 million and
$2.3 million for the three months
ended July 31, 2016 and 2015,
respectively, an increase of $900,000
or 35.2%. The increase is due to increased bookings in prior
quarters, both in the number and size of the studies, and the
addition of new customers.
TOS cost of sales was $2.0 million
and $1.6 million for the three months
ended July 31, 2016 and 2015,
respectively, an increase of $400,000, or 27.1%. For the three months ended
July 31, 2016 and 2015, gross margin
for TOS was 35.1% and 31.0%, respectively. The increase in TOS 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.
Personalized Oncology Solutions (POS):
POS revenue was $511,000 and
$485,000 for the three months ended
July 31, 2016 and 2015, respectively,
an increase of $26,000 or 5.4%. The
increase is primarily the result of growth in sequencing revenue of
$115,000 offset by a decline in
implant and drug panel revenue of $29,000 and $60,000, respectively.
POS cost of sales was $474,000 and
$661,000 for the three months ended
July 31, 2016 and 2015, respectively,
a decrease of $187,000, or (28.3%).
For the three months ended July 31,
2016 and 2015, gross margin for POS was 7.2% and negative
(36.3%), respectively. The improvement is attributed to the
increase in higher margin sequencing revenue and aggressively
managing our lab costs.
Research and development expense was $1.2
million and $1.1 million for
the three months ended July 31, 2016
and 2015, respectively, an increase of $100,000, or 10.1%. The increase is primarily due
to an increase in salary expense. Sales and marketing expense for
the three months ended July 31, 2016
and 2015 was $925,000 and
$1 million, respectively, a decrease
of $75,000, or (10.1%). The decrease
is due to the consolidation of sales and marketing personnel
resources of the POS and TOS division. General and administrative
expense was $1.5 million and
$1.3 million for the three months
ended July 31, 2016 and 2015,
respectively, an increase of $200,000, or 16.5%. The increase is due to an
increase of $354,000 in stock
compensation expense.
Conference Call Information:
The Company will host a conference call today at 8:30 a.m. EDT (5:30 a.m.
PDT) to discuss its first quarter 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".
Full details of the Company's financial results will be
available Wednesday September 14,
2016 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,
2016 and 2015. 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,
2016 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,
|
|
2016
|
|
2015
|
Net loss -
GAAP
|
$
|
(2,546)
|
|
|
$
|
(2,913)
|
|
Less:
|
|
|
|
Stock-based
compensation
|
1,129
|
|
|
775
|
|
Net loss -
non-GAAP
|
$
|
(1,417)
|
|
|
$
|
(2,138)
|
|
Reconciliation of
GAAP EPS to Non-GAAP EPS (Unaudited)
|
|
|
Three Months
Ended
July 31,
|
|
2016
|
|
2015
|
EPS – GAAP
|
$
|
(0.26)
|
|
|
$
|
(0.33)
|
|
Less:
|
|
|
|
Effect of stock-based
compensation on EPS
|
0.11
|
|
|
0.09
|
|
EPS -
non-GAAP
|
$
|
(0.15)
|
|
|
$
|
(0.24)
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
Three Months
Ended
July 31,
|
|
2016
|
|
2015
|
TOS operating
revenue
|
3,159
|
|
|
2,337
|
|
POS operating
revenue
|
$
|
511
|
|
|
$
|
485
|
|
Total operating
revenue
|
$
|
3,670
|
|
|
$
|
2,822
|
|
Cost of
TOS
|
2,049
|
|
|
1,612
|
|
Cost of
POS
|
474
|
|
|
661
|
|
Research and
development
|
1,211
|
|
|
1,100
|
|
Sales and
marketing
|
925
|
|
|
1,029
|
|
General and
administrative
|
1,534
|
|
|
1,317
|
|
Loss from
Operations
|
$
|
(2,523)
|
|
|
$
|
(2,897)
|
|
Other Income
(Expense)
|
(9)
|
|
|
(10)
|
|
Net Loss before
provision for income taxes
|
$
|
(2,532)
|
|
|
$
|
(2,907)
|
|
Income
taxes
|
14
|
|
|
6
|
|
Net
Loss
|
$
|
(2,546)
|
|
|
$
|
(2,913)
|
|
Condensed
Consolidated Balance Sheets as of (Unaudited)
|
|
|
July
31,
2016
|
|
April
30,
2016
|
Cash and cash
equivalents
|
$
|
4,463
|
|
|
$
|
2,585
|
|
Accounts
receivable
|
1,628
|
|
|
1,312
|
|
Other current
assets
|
349
|
|
|
443
|
|
Total current
assets
|
6,440
|
|
|
4,340
|
|
|
|
|
|
Restricted
cash
|
150
|
|
|
150
|
|
Property and
equipment, net
|
590
|
|
|
618
|
|
Goodwill
|
669
|
|
|
669
|
|
Total
assets
|
$
|
7,849
|
|
|
$
|
5,777
|
|
Accounts payable and
accrued liabilities
|
$
|
1,729
|
|
|
$
|
2,167
|
|
Deferred
revenue
|
2,697
|
|
|
3,139
|
|
Total current
liabilities
|
4,426
|
|
|
5,306
|
|
Other Non-current
Liability
|
247
|
|
|
233
|
|
Stockholders'
equity
|
3,176
|
|
|
238
|
|
Total liabilities
and stockholders' equity
|
$
|
7,849
|
|
|
$
|
5,777
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Three Months
Ended
July
31,
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net Loss
|
$
|
(2,546)
|
|
|
$
|
(2,913)
|
|
Adjustments to
reconcile net cash used in operations:
|
|
|
|
Stock-based
compensation expense
|
1,129
|
|
|
775
|
|
Depreciation and
amortization expense
|
45
|
|
|
37
|
|
Allowance for
doubtful accounts
|
(2)
|
|
|
—
|
|
Changes in operating
assets and liabilities
|
(1,080)
|
|
|
(442)
|
|
Net cash used in
operating activities
|
(2,454)
|
|
|
(2,543)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(17)
|
|
|
(29)
|
|
Net cash used in
investing activities:
|
(17)
|
|
|
(29)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Public Offering June
2016, net of financing costs of $742,000
|
4,340
|
|
|
—
|
|
Payment of issuance
costs related to 2015 Private Placement
|
—
|
|
|
(18)
|
|
Capital lease
payments
|
(6)
|
|
|
(7)
|
|
Issuance of common
stock
|
15
|
|
|
—
|
|
Net cash provided
by (used in) financing activities:
|
4,349
|
|
|
(25)
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
1,878
|
|
|
(2,597)
|
|
Cash and cash
equivalents, beginning of period
|
2,585
|
|
|
9,357
|
|
Cash and cash
equivalents, end of period
|
$
|
4,463
|
|
|
$
|
6,760
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/champions-oncology-beats-revenue-guidance-for-quarter-reaffirms-full-year-guidance-of-43---60-revenue-growth-300325202.html
SOURCE Champions Oncology, Inc.