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Sep 30, 2020
Inotiv Q4 2020 Earnings Report
Inotiv's Q4 fiscal year 2020 earnings were released, showing an increase in revenue but a net loss due to increased costs and investments in infrastructure.
Key Takeaways
Inotiv reported a 6.7% increase in revenue for the fourth quarter of fiscal year 2020, primarily driven by the PCRS acquisition. However, the company experienced a net loss due to increased costs associated with capacity expansion, infrastructure development, and general administrative expenses.
Revenue increased by 6.7% compared to the fourth quarter of fiscal 2019, reaching $15.774 million.
Service revenue increased by 11.1%, driven by nonclinical services revenues and the PCRS acquisition.
Net loss amounted to $1.792 million, or $0.16 per diluted share, compared to net income of $290,000, or $0.03 per diluted share in Q4 2019.
The company's book-to-bill ratio for the quarter was 1.48x, and the backlog at the end of the quarter was $43.8 million.
Forward Guidance
Inotiv anticipates continued internal growth by adding services and expanding capacity, along with exploring selective external growth opportunities to broaden its platform and drive shareholder value. The company intends to enhance client experience, build a winning culture, and create a gratifying work environment, while also updating governance practices and proposing a formal corporate name change to Inotiv, Inc.
Positive Outlook
- Focus on internal growth by adding services and expanding capacity.
- Explore selective external growth opportunities to add breadth and value.
- Commitment to enhancing client experience and building a winning culture.
- Aim to create a professionally gratifying work environment.
- Intention to update governance practices.
Challenges Ahead
- The pandemic had a negative impact on financial results.
- Experienced customer delays or pauses of studies.
- Pandemic-related impacts on employees, suppliers, and clients.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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