The following is a summary of the Avid Bioservices, Inc. (CDMO) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Avid Bioservices reported a revenue increase to $40.2 million in Q1 2025, a 6% increase from the previous year.

• Gross profit for Q1 2025 was $5.7 million with a 14% margin, compared to $4.1 million with an 11% margin in Q1 2024.

• SG&A expenses rose to $8.2 million, a 30% increase due to higher compensation and consulting fees.

• The company reported a net loss of $5.5 million, or $0.09 per share, widening from a loss of $2.1 million, or $0.03 per share, in the year-ago quarter.

Business Progress:

• Signed $66 million in new project agreements resulting in a record backlog of $219 million.

• Majority of new contracts are with new customers including a significant addition of a large pharma customer.

• Executed PPQ programs, with one being a Phase 3 project progressing towards commercialization and another already a commercially approved product.

• Infrastructure investments have enhanced capabilities, attracting a more diverse customer base and broadening the project pipeline.

Opportunities:

• High backlog sets the foundation for future revenue growth and capacity utilization.

• The addition of a large pharma customer enhances company reputation and potential for further large-scale collaborations.

• Investments in infrastructure have positioned the company to better serve both large pharma and smaller biotech firms.

Risks:

• Economic fluctuations could impact financial performance, indicated by increased SG&A expenses and a widening net loss.

• The dependency on major clients like Halozyme, although decreasing, still poses a financial concentration risk.

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.