BioLife Solutions Inc (BLFS)

[techisbest]

With respect to our current outlook for 2020, we have updated the preliminary guidance we provided last November and now expect total revenue for 2020 will be between $48 million to $53 million, reflecting year-over-year growth of 75% to 94% on an as reported basis and approximately 32% on a pro forma basis. We have lowered our revenue guidance for the evo product line by $2 million to $3 million for 2020 to reflect the delays we have seen in the final validation of the technology by a large commercial cell therapy company.

We estimate that media revenue will grow between 20% to 30% and account for approximately 55% of total 2020 revenue. With CBS freezer line accounting for another 35% and the evo and thaw product lines, each contributing approximately 5% of revenue. The last comment regarding revenue guidance is that we expect to see sequential revenue increases throughout the year with an estimated 40% of total 2020 revenue coming in the first half and the remaining 60% in the second half of the year.

Our adjusted gross margin for 2020 should fall between 58% to 62% given the lower margin profile of the evo and CBS product lines. However, we expect sequential increases in gross margin throughout the year as higher margin products are introduced at CBS and the benefits of leverage are realized. We expect approximately $500,000 of acquisition related inventory step up charges to increased COGS in Q1 and Q2 of this year. We expect 2020 operating expenses to be in the range of $28 million to $30 million, inclusive of $2.8 million of intangible asset amortization expense. We believe that operating expenses will remain relatively flat on a quarterly basis throughout the year.

Finally, we expect to be positive on the operating net income and EBITDA lines on a GAAP and a non-GAAP basis for the full year of 2020 and exit the year with an adjusted EBITDA margin of 20% to 25%. Finally, we currently have $20.8 million common shares issued in outstanding and a fully diluted share count of $27.5 million.

https://www.fool.com/earnings/call-transcripts/2020/03/11/biolife-solutions-inc-blfs-q4-2019-earnings-call-t.aspx