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Jun 30, 2023

SIGA Technologies Q2 2023 Earnings Report

SIGA Technologies' financial performance declined in Q2 2023 compared to Q2 2022, with a decrease in total revenues and a shift from operating income to an operating loss. The company announced significant U.S. government orders for oral and IV TPOXX in July 2023 and anticipates a substantial increase in revenues during the second half of the year.

Key Takeaways

SIGA Technologies reported a decrease in total revenues and a loss in net income for Q2 2023 compared to Q2 2022. However, the company anticipates a significant increase in revenues during the second half of the year, driven by recent U.S. government orders for oral and IV TPOXX, and expects to achieve full-year 2023 pre-tax operating income between $90 million and $100 million.

Total revenues decreased to $5.9 million in Q2 2023 from $16.7 million in Q2 2022.

Operating income shifted to a loss of $4.6 million in Q2 2023, compared to an income of $3.1 million in Q2 2022.

Net loss was $2.9 million, or $0.04 per share, in Q2 2023, compared to a net income of $2.0 million, or $0.03 per share, in Q2 2022.

The company expects to generate approximately $113 million of revenues from deliveries of oral TPOXX to the U.S. strategic national stockpile in the second half of 2023.

Total Revenue
$5.88M
Previous year: $16.7M
-64.7%
EPS
-$0.04
Previous year: $0.03
-233.3%
Gross Profit
-$212K
Previous year: $8.94M
-102.4%
Cash and Equivalents
$76.2M
Previous year: $115M
-33.5%
Total Assets
$147M
Previous year: $160M
-8.4%

SIGA Technologies

SIGA Technologies

SIGA Technologies Revenue by Segment

Forward Guidance

SIGA Technologies anticipates a substantial increase in revenues during the second half of 2023, driven by recent U.S. government orders for oral and IV TPOXX, and expects to achieve full-year 2023 pre-tax operating income between $90 million and $100 million.

Positive Outlook

  • Expected revenues of approximately $113 million from oral TPOXX deliveries to the U.S. strategic national stockpile in the second half of 2023.
  • Anticipated revenues between $30 million and $45 million from domestic and international deliveries, including oral TPOXX to the Department of Defense, IV TPOXX to the U.S. strategic national stockpile, and oral TPOXX to international customers.
  • Full-year 2023 pre-tax operating income expected to be between $90 million and $100 million.
  • Consistent ability to meet demand for oral TPOXX.
  • Increasingly diversified global revenue opportunities.

Challenges Ahead

  • Risk that BARDA may not exercise all remaining unexercised options under the BARDA Contract.
  • Risk that SIGA may not complete performance under the BARDA Contract on schedule or in accordance with contractual terms.
  • Risk that the BARDA Contract, DoD Contract #2 or PEP Label Expansion R&D Contract are modified or canceled at the request or requirement of the U.S. Government.
  • Risk that the nascent international biodefense market does not develop to a degree that allows SIGA to continue to successfully market TPOXX® internationally.
  • Risks associated with actions or uncertainties surrounding the debt ceiling.

Revenue & Expenses

Visualization of income flow from segment revenue to net income