LAKE FOREST, Calif.,
Nov. 12, 2014 /PRNewswire/
-- Cryoport, Inc. (OTCBB: CYRX) today announced financial
results for its second quarter and six months ended September 30, 2014.
Recent Operating Highlights
- Generated 65% revenue growth to $1.8
million for the first six months of fiscal 2015 ended
September 30, 2014 compared to the
prior year
- Secured a collaboration agreement with UPS that enhances their
temperature-sensitive offerings to the healthcare industry
- Deployed the "Regenerative Medicine Point-of-Care Repository"
solution for Liventa Bioscience's AmnioClear® LCT
therapy to orthopedic clinics in the U.S.
- Engaged the Broekman Group to enhance logistics and operational
support in Europe
Six-Month Financial Results
Cryoport's net revenues
increased 65% to $1.8 million for the
six months ended September 30, 2014,
as compared to $1.1 million for the
same period last year. The increase was primarily driven by growth
in overall demand within the Company's existing client base and the
addition of new clients using Cryoport Express®
Solutions as compared to the same period in the prior year.
Gross margin for the six months ended September 30, 2014 was 32% of net revenues, or
$0.6 million, as compared to gross
margin of 12% of net revenues, or $0.1
million, for the six months ended September 30, 2013. Cost of revenues for the six
months ended September 30, 2014 was
68% of net revenues, or $1.2 million,
as compared to 88% of net revenues, or $0.9
million for the six months ended September 30, 2013, which illustrates the
operating leverage in the business model as revenue continues to
ramp.
Net loss decreased by $13.6
million to $3.7 million for the six months ended
September 30, 2014, a 77% decrease
compared with a net loss of $16.3
million for the six months ended September 30, 2013. The net loss for
the second fiscal quarter last year included a debt conversion
expense of $13.2 million.
Three-Month Financial Results
Net revenues were
$0.8 million, a 42% increase for the
three months ended September 30,
2014, as compared with $0.6
million for the three months ended September 30, 2013.
The demand for cryogenic logistics solutions in the life
sciences industry and an increase in our client base were the main
contributors to the growth.
Gross margins for the three months ended September 30, 2014 was 27% as compared with 12%
for the three months ended September
30, 2013. The increase in gross margin was primarily
due to the operating leverage in the company resulting in improved
economies of scale as revenues increased.
Net loss decreased by $13.6
million to $1.4 million for the three months ended
September 30, 2014, a 91% decrease
compared with a net loss of $15.0
million for the three months ended September 30, 2013. The net loss for
the second fiscal quarter last year included a debt conversion
expense of $13.2 million.
Cryoport's CEO, Jerrell Shelton,
commented, "We are pleased to report another quarter of revenue
growth over last year, resulting in a continued expansion of our
gross margin. Our sales and marketing strategies are gaining
momentum as evidenced by an active and growing sales pipeline. Our
growth year-to-date is also a reflection of a flourishing life
sciences industry with new therapies coming to market. Our recently
announced strategic collaboration with United Parcel Service (UPS)
is yet another strong indication of the acceptance of our validated
solutions and the opportunities that exists within life sciences.
We are now the provider of choice for the three major
carriers looking to deliver validated cryogenic logistics solutions
to their life sciences and healthcare customers. Our unique,
best-in-class solutions deliver superior economics and reliability
to life sciences clients throughout the world.
"Our 'powered by CryoportSM' partnering strategy with
the leading carriers in the world has expanded our sales and
marketing reach in the life sciences community and across the
globe. The increased adoption of our cryogenic logistics solutions
is a validation of our technology-centric solutions and expertise
in time- and temperature-sensitive logistics as more life sciences
companies rely on our services. We expect our momentum and growth
to continue as we strive to maintain our market
leadership."
"We are expanding our client base as we cultivate relationships
with large life sciences companies. Our increases in revenues are
coming from across the board as we are recognized as an important
partner to the life sciences industry and we are recognized for
providing solutions for the critical link of cryogenic logistics
for the industry. Our employees take pride in our
reputation and work diligently to effectively serve our clients and
support our clients' initiatives."
"We maintain our long-term view of the market opportunities for
Cryoport and our strategic vision of being the premier provider of
cold chain logistics solutions, including packaging, information
technology, and logistics expertise, to the life sciences industry.
Our competencies to customize cryogenic logistics solutions to meet
client-defined needs and requirements are unsurpassed in the
industry. Our role in the fast growing cold chain market for life
sciences continues to be validated by the increasing attention we
receive from industry players that serve the life sciences market
including integrators, specialty couriers, freight forwarders and
brokers," concluded Mr. Shelton.
Further information on Cryoport's results are included on the
attached condensed consolidated balance sheets and statements of
operations and further explanation of Cryoport's financial
performance is provided in Cryoport's quarterly report for the
quarter ended September 30, 2014 on
Form 10-Q, which was filed with the SEC today. The full report is
available on the SEC Filings section of the Investor Relations
section of our website at www.cryoport.com.
About Cryoport, Inc.
Cryoport provides leading edge cryogenic logistics solutions to
the life sciences industry through the combination of purpose-built
proprietary packaging, software technologies and skilled and total
management of the entire logistics process. Cryoport
Express® liquid nitrogen dry vapor shippers are
validated to maintain a constant -150°C temperature for a 10-plus
day dynamic shipment duration, and its Cryoportal™ Logistics
Management Platform assists in managing the entire shipment
process, including initial order input, document preparation,
customs documentation and clearance, courier management, shipment
tracking, issue resolution, and delivery. Cryoport's total turnkey
logistics solutions offer reliability, cost effectiveness, and
convenience, while the use of recyclable and reusable components
provides a "green" and environmentally friendly solution. Among
Cryoport's service options, the client has the option to record and
archive the "chain of condition" and "chain of custody" information
for shipments thereby meeting the exacting requirements for
scientific work and regulatory purposes. For more information visit
www.cryoport.com.
To download Cryoport's investor relations app, which offers
access to SEC documents, press releases, videos, audiocasts and
more, please click to download from your iPhone and iPad
or Android mobile device.
Forward Looking Statements
Statements in this press release which are not purely
historical, including statements regarding Cryoport, Inc.'s
intentions, hopes, beliefs, expectations, representations,
projections, plans or predictions of the future are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. It is important to note that the company's
actual results could differ materially from those in any such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, risks and
uncertainties associated with the effect of changing economic
conditions, trends in the products markets, variations in the
company's cash flow, market acceptance risks, and technical
development risks. The company's business could be affected by a
number of other factors, including the risk factors listed from
time to time in the company's SEC reports including, but not
limited to, the annual report on Form 10-K for the year ended
March 31, 2014. The company cautions
investors not to place undue reliance on the forward-looking
statements contained in this press release. Cryoport, Inc.
disclaims any obligation, and does not undertake to update or
revise any forward-looking statements in this press
release.
Contact:
Todd Fromer / Garth Russell
tfromer@kcsa.com / grussell@kcsa.com
P: 1-212-682-6300
Cryoport Inc. and
Subsidiary
|
Condensed
Consolidated Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Six Months
Ended
September 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
|
$
825,000
|
|
$
579,827
|
|
$ 1,761,588
|
|
$
1,067,790
|
Cost of
revenues
|
600,042
|
|
507,725
|
|
1,197,275
|
|
941,046
|
Gross
margin
|
224,958
|
|
72,102
|
|
564,313
|
|
126,744
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
1,510,708
|
|
1,240,413
|
|
2,938,558
|
|
2,462,487
|
|
Research and
development
|
89,279
|
|
118,436
|
|
168,523
|
|
211,079
|
Total operating costs
and expenses
|
1,599,987
|
|
1,358,849
|
|
3,107,081
|
|
2,673,566
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(1,375,029)
|
|
(1,286,747)
|
|
(2,542,768)
|
|
(2,546,822)
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
Debt conversion
expense
|
-
|
|
(13,161,017)
|
|
-
|
|
(13,161,017)
|
|
Interest
expense
|
(7,854)
|
|
(512,776)
|
|
(1,136,732)
|
|
(594,995)
|
|
Other expense,
net
|
(1,876)
|
|
-
|
|
(923)
|
|
-
|
|
Change in fair value
of derivatives
|
-
|
|
892
|
|
-
|
|
19,649
|
Loss before provision
for income taxes
|
(1,384,759)
|
|
(14,959,648)
|
|
(3,680,423)
|
|
(16,283,185)
|
Provision for income
taxes
|
-
|
|
-
|
|
(1,600)
|
|
-
|
Net loss
|
|
(1,384,759)
|
|
(14,959,648)
|
|
(3,682,023)
|
|
(16,283,185)
|
Preferred stock
beneficial conversion charge
|
(1,727,027)
|
|
-
|
|
(2,468,813)
|
|
-
|
Undeclared cumulative
preferred dividends
|
(71,874)
|
|
-
|
|
(99,597)
|
|
-
|
Net loss attributable
to common stockholders
|
$ (3,183,660)
|
|
$ (14,959,648)
|
|
$ (6,250,433)
|
|
$ (16,283,185)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders - basic and diluted
|
$
(0.05)
|
|
$
(0.38)
|
|
$
(0.10)
|
|
$
(0.42)
|
Weighted average
shares outstanding - basic and diluted
|
60,048,933
|
|
39,110,774
|
|
60,019,290
|
|
38,589,663
|
Cryoport Inc. and
Subsidiary
|
Summary Condensed
Consolidated Balance Sheets
|
|
|
|
|
September
30,
|
|
March
31,
|
|
|
|
2014
|
|
2014
|
|
|
|
(unaudited)
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
103,343
|
|
$
369,581
|
|
Accounts receivable,
net
|
408,080
|
|
515,825
|
|
Inventories
|
58,804
|
|
29,703
|
|
Other current
assets
|
85,312
|
|
196,505
|
|
|
Total current
assets
|
655,539
|
|
1,111,614
|
Property and
equipment, net
|
393,372
|
|
408,892
|
Intangible assets,
net
|
156,407
|
|
180,086
|
Deposits and other
assets
|
-
|
|
9,358
|
|
|
Total
assets
|
$ 1,205,318
|
|
$
1,709,950
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other accrued expenses
|
$
703,084
|
|
$
579,678
|
|
Accrued compensation
and related expenses
|
549,659
|
|
454,288
|
|
Convertible
debentures payable and accrued interest, net of discount
|
-
|
|
1,622,359
|
|
Current portion of
related party note payable
|
1,326,188
|
|
1,358,120
|
|
|
Total current
liabilities
|
2,578,931
|
|
4,014,445
|
|
|
Total stockholders'
deficit
|
(1,373,613)
|
|
(2,304,495)
|
|
|
Total liabilities and
stockholders' deficit
|
$ 1,205,318
|
|
$
1,709,950
|
Logo -
http://photos.prnewswire.com/prnh/20140401/NY95107LOGO
SOURCE Cryoport, Inc.