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Jan 31, 2021
Avid Bioservices Q3 2021 Earnings Report
Avid Bioservices reported strong financial results driven by increased revenue and new business
Key Takeaways
Avid Bioservices reported an exceptional third quarter with strong top-line revenue growth, improved margins, and cash generation. The company signed $74 million in new business, resulting in a record backlog of $120 million. Revenue guidance for fiscal year 2021 was raised to $88 to $91 million.
Third quarter revenue increased by 61% to $21.8 million.
Signed $74 million in new orders, ending the quarter with a backlog of $120 million.
The first phase of the Myford expansion is on target, and the start of the second phase has been accelerated.
Raised gross proceeds of $34.5 million in a follow-on equity offering.
Avid Bioservices
Avid Bioservices
Forward Guidance
Avid Bioservices raised its revenue guidance for fiscal year 2021 to between $88 million and $91 million.
Positive Outlook
- Strong revenue growth driven by increased demand.
- Significant improvement in margins and key financial metrics.
- Continued cash generation from operations.
- Record backlog of $120 million provides revenue visibility.
- Myford facility expansion to increase revenue capacity.
Challenges Ahead
- Risk that the ongoing COVID-19 pandemic will adversely affect business and operations.
- Risk of delays in engaging new clients.
- Risk of unsuccessful execution of client projects.
- Risk of technical difficulties in completing client projects.
- Risk that one or more existing customers terminates its contract.