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Jan 31, 2020
Avid Bioservices Q3 2020 Earnings Report
Avid Bioservices reported third quarter revenue of $13.6 million, impacted by production challenges, and adjusted fiscal 2020 projected revenue to $55 to $59 million.
Key Takeaways
Avid Bioservices reported a third quarter with revenue of $13.6 million. The company faced production challenges due to a specific equipment issue, leading to terminated and postponed manufacturing runs. As a result, the company adjusted its fiscal year 2020 revenue guidance to $55 - $59 million.
Third quarter revenue was $13.6 million.
Signed new customer and project expansion orders with current customers for $20 million.
Adjusted fiscal 2020 projected revenue to $55 to $59 million due to production challenges.
Welcomed Timothy Compton as chief commercial officer to lead customer and project base expansion.
Avid Bioservices
Avid Bioservices
Forward Guidance
Avid Bioservices adjusted its fiscal 2020 revenue guidance to $55 - $59 million due to temporary production interruption, but anticipates recovering those revenues in fiscal 2021. The company remains optimistic about Avid’s growth potential and is focused on expanding its customer and project base.
Positive Outlook
- Expectation that the production problem will be resolved soon and its impact will be contained to fiscal 2020.
- Anticipation of recovering lost revenues in fiscal 2021.
- Continued expansion of Avid’s customer and project base.
- Signed agreements to add one new customer and multiple additional manufacturing campaigns with existing customers during the period.
- Progress on projects to optimize the existing Myford facility while finalizing plans for its future expansion.
Challenges Ahead
- Production challenges during the period related to a problem with a specific piece of equipment.
- Termination of in-process manufacturing runs.
- Postponement of several other manufacturing runs scheduled to commence during the third quarter.
- Lower revenue and profits for the third quarter.
- Expectation that the production interruption will impact revenues and profits for the fourth quarter of fiscal 2020.