Champions Oncology Reports Full Year 2011 Financial Results
9:00 am ET 07/15/2011 - PR Newswire
BALTIMORE, July 15, 2011 /PRNewswire/ -- Champions Oncology, Inc., formerly Champions Biotechnology, Inc., (OTC: CSBR):
Highlights:
•Company completes $9.4 million financing during 2011
•Revenue growth of 41% to $6.9 million•Net loss of $3.8 million; excluding stock based compensation a net loss of $0.7 million*
•Net loss of ($0.10) per share; net loss excluding stock-based compensation of ($0.02) per share*
•Cash of $10.5 million at year end
Annual 2011 Financial Results:
For its fiscal year 2011, Champions generated revenue of $6.9 million, an increase of $2 million or 41%, compared to fiscal year 2010.
Champions also reported a net loss of $3.8 million, or ($0.10) per share, compared to a net loss of $2.9 million, or ($0.09) per share, in the corresponding prior year.
However, excluding stock based compensation* of $3.1 million, Champions recognized net loss of $0.7 million, or ($0.02) per share for 2011 compared to a net loss of $2.3 million excluding stock based compensation* of $0.6 million, or ($0.07) per share for 2010.
Services Revenues
Total revenues for fiscal 2011 were $6.9 million compared to $4.9 million for fiscal 2010, an increase of $2.0 million, or 41%. Revenues from Personalized Oncology Solutions, ("POS"), were $3.4 million compared to $3.2 million in the prior year, an increase of $0.2 million, or 6%. Revenues from Translational Oncology Solutions, ("TOS"), previously referred to as Preclinical eValuation services, were $3.5 million for 2011 as the compared to $1.7 million in the prior year, an increase of $1.8 million, or 108%.
Costs of POS for the fiscal year 2011 and 2010 were $1.6 million and $1.1 million, respectively, an increase of $0.5 million, or 44%. The increase in costs for POS was due to the increased volume of POS business. For the fiscal year 2011 and 2010, gross margins for POS were 53% and 65%, respectively. The decrease in gross margin was attributable to the reduction in POS prices that the Company has instituted to increase affordability and market potential of the services being offered.
Costs of TOS for the fiscal year 2011 and 2010 were $1.5 million and $0.8 million, respectively, an increase of $0.7 million, or 93%. For the fiscal year 2011 and 2010, gross margins for TOS was 56% and 53%, respectively.
Research and Development
Research and development, or R&D, expenses for fiscal year 2011 and 2010 were $3.0 million and $2.6 million, respectively, an increase of $0.4 million, or 12%. The increase in R&D expenses in 2011 was primarily due to the Company's increased spending on its technology platform and Tumorgraft testing on the company's in-licensed compounds.
General and Administrative
General and administrative, or G&A, expenses for the fiscal year 2011 and 2010 were $4.6 million and $2.8 million, respectively, an increase of $1.8 million, or 67%. The increase was primarily due to the $2.3 million of non-cash stock-based compensation expense related to stock options issued to the Company's Chief Executive Officer and President.
Sales and Marketing
Sales and marketing expenses for the fiscal year 2011 and 2010 were $1.4 million and $0.5 million, respectively, and increase of $0.9 million or 173%. The increase was primarily due to the hiring of additional sales employees and $0.3 million in new marketing efforts.
Other Income (Expense), Net
Other income (expense), net for the fiscal year 2011 was $1.5 million, which primarily relates to grant income earned under the Qualifying Therapeutic Discovery Project program administered under Section 48D of the Internal Revenue Code based on the qualifying expenses incurred through the fiscal year ended April 30, 2011.
Cash and Cash Equivalents
The Company's cash position on April 30, 2011 was $10.5 million compared to $2.6 million on April 30, 2010.
* Non-GAAP Financial Information
See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss) for an explanation of the amounts excluded to arrive at non-GAAP net income (loss) and related non-GAAP earnings (loss) per share amounts for the fiscal year ended, 2011 and 2010, respectively. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net income (loss) and non-GAAP earnings (loss) per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted earnings per share amounts as non-GAAP net income divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share may differ from similarly named measures used by others.
Full details of the Company's financial results will be available in the Company's Form 10-K at www.championsoncology.com.
