LAKE FOREST, Calif.,
July 31, 2014 /PRNewswire/ --
Cryoport, Inc. (OTCBB: CYRX) today announced financial results for
the three month period ended June 30,
2014.
Recent Operating Highlights
- Achieved 92% revenue growth to $0.94
million for the three month period ended June 30, 2014 compared to the prior year
quarter
- Partnered with DHL to further expand Cryoport's global reach
using the 'powered by CryoportSM'' strategy
- Advanced support of Immudex, an immunotherapy and vaccine
development services company, to support its global distribution of
biological materials using Cryoport solutions
- Continued advancement with Cenetron Diagnostics, an industry
leading central laboratory services provider, to support its growth
with Cryoport's customized cryogenic logistics solution
- Commenced engagement with Glaukos Corporation, a leading
ophthalmic medical device company, to support international
shipments of sensitive biologic material from iStent®
clinical trial with Cryport's turn-key frozen logistics
solution
"We continue to make significant strides in our business
development efforts as demonstrated over the last several quarters.
This includes closing a number of strategic customer deals and
partnership agreements that will contribute significantly to future
revenue growth," stated Jerrell
Shelton, Chief Executive Officer of Cryoport. "Our focus on
scaling operations in order to drive profitable growth for the
business is quickly being recognized. For the first quarter
of fiscal 2015, revenue increased 92% to $0.94 million, with a gross margin of 36%,
compared to $0.49 million in revenue
and a gross margin of 11% for the same period last year."
Mr. Shelton further stated, "We continue to move forward with
our 'powered by CryoportSM' partnering strategy designed
to expand our sales and marketing reach as well as increase the
awareness of our solutions in the life sciences community. We are
excited to report that our distinct strategic agreements with FedEx
and DHL, two of the largest integrators in the world, have allowed
us to extend our reach and positioning to address a larger portion
of the market. Our unique approach with each partnership remains
proactive, as we look to help educate and provide ongoing support
to each company's respective sales team for our cryogenic
solutions."
"We are empowered by the growing demand within the life science
industry to utilize our superior cryogenic logistics solutions to
deliver shipments of biologic materials. Our advanced technology
ensures the reliable and efficient delivery of biologic materials,
on a global scale. Our clients include companies working with
biologic materials, including stem cells, cell therapies and cell
line manufacturing and research, vaccines and other biologic drug
development, IVF, animal health, and many other cell based
sciences. In particular, our penetration into the reproductive
medicine/in vitro fertilization market has shown exceptional
success with a revenue growth rate of 129% year-over-year."
Net revenues were $0.94 million, a
92% increase for the three months ended June
30, 2014, as compared with $0.49
million for the three months ended June 30, 2013. Contributors to this
increase were the ramp up and expansion of logistics services
provided to animal health, an increase in revenues from the
reproductive medicine/in vitro fertilization market, the increasing
number of customers utilizing Cryoport's solutions and an increase
in the frequency of shipments compared to the prior year.
Mr. Shelton concluded, "Our team is working hard to continue our
drive to profitability. We are encouraged by the life science
market's growing acceptance of our solutions. As mentioned in our
last earnings release, our SG&A and R&D costs will increase
as we continue to scale the business."
Gross margins for the three months ended June 30, 2014 was 36% as compared with 11% for
the three months ended June 30,
2013. The increase in gross margin was primarily due to the
increase in revenue combined with a reduction in freight as a
percentage of revenue and a decrease of fixed manufacturing
costs.
Selling, general and administrative expenses increased
$0.2 million to $1.4 million for the three months ended
June 30, 2014, as compared with
$1.2 million for the three months
ended June 30, 2013. The
increase was primarily due to recruiting fees, the engagement of
our investor relations firm and related activities, legal fees and
banking charges.
Loss from operations was $1.2
million for the three months ended June 30, 2014, as compared to $1.3 million for the three months ended
June 30, 2013.
Net loss was $2.3 million, an
increase of 74% for the three months ended June 30, 2014, as compared with a net loss of
$1.3 million for the three months
ended June 30, 2013. This increase
was primarily driven by a non-cash charge for the beneficial
conversion feature of convertible notes issued by Cryoport from
December 2013 through March 2014.
As of June 30, 2014, Cryoport had
cash and cash equivalents of $0.2
million compared with $0.4
million as of March 31,
2014.
Further information on Cryoport's results are included on the
attached unaudited consolidated balance sheets and statements of
operations and further explanation of Cryoport's financial
performance is provided in Cryoport's quarterly report for the
three months ended June 30, 2014 on
Form 10-Q, which will be filed with the Securities and Exchange
Commission (SEC) on July 31, 2014.
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, advanced information technology and highly
skilled logistics expertise which manages the entire cold chain
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 logistics process, including initial order input, document
preparation, customs 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. Cryoport
service options include recording the "chain of condition" and
"chain of custody" for all shipments thereby meeting the exacting
requirements for scientific work and for regulatory purposes. For
more information on Cryoport 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 on your iPhone and iPad
or your 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.
Cryoport Contacts:
Todd Fromer / Garth Russell
tfromer@kcsa.com / grussell@kcsa.com
P: 01-212-682-6300
or
Robert Stefanovich
P: 01-619-481-6802
rstefanovich@cryoport.com
CRYOPORT,
INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
For the Three
Months Ended June
30,
|
|
2014
|
|
2013
|
Revenues
|
$ 936,588
|
|
$ 487,963
|
Cost of
revenues
|
597,233
|
|
433,321
|
|
|
|
|
Gross
margin
|
339,355
|
|
54,642
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
Selling, general and
administrative
|
1,427,850
|
|
1,222,074
|
Research and
development
|
79,244
|
|
92,643
|
|
|
|
|
Total operating costs
and expenses
|
1,507,094
|
|
1,314,717
|
|
|
|
|
Loss from
operations
|
(1,167,739 )
|
|
(1,260,075 )
|
Other (expense)
income:
|
|
|
|
Interest
expense
|
(1,128,878)
|
|
(82,219)
|
Other income,
net
|
953
|
|
—
|
Change in fair value
of derivatives
|
—
|
|
18,757
|
|
|
|
|
Loss before provision
for income taxes
|
(2,295,664 )
|
|
(1,323,537 )
|
Provision for income
taxes
|
(1,600)
|
|
—
|
|
|
|
|
Net loss
|
(2,297,264 )
|
|
(1,323,537 )
|
Preferred stock
beneficial conversion charge
|
(741,786)
|
|
—
|
Undeclared preferred
dividends
|
(27,723)
|
|
—
|
|
|
|
|
Net loss attributable
to common stockholders
|
$ (3,066,773 )
|
|
$ (1,323,537 )
|
|
|
|
|
Net loss attributable
to common stockholders – basic and diluted
|
$
(0.05)
|
|
$
(0.03)
|
|
|
|
|
Weighted average
shares outstanding – basic and diluted
|
59,989,321
|
|
38,062,826
|
CRYOPORT,
INC. SUMMARY CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
June
30,
|
|
March
31,
|
|
2014
|
|
2014
|
|
(unaudited)
|
|
|
ASSETS
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$ 170,505
|
|
$ 369,581
|
Accounts receivable,
net
|
492,865
|
|
515,825
|
Inventories
|
38,601
|
|
29,703
|
Other current
assets
|
81,421
|
|
196,505
|
|
|
|
|
Total current
assets
|
783,392
|
|
1,111,614
|
Property and
equipment, net
|
364,728
|
|
408,892
|
Intangible assets,
net
|
167,425
|
|
180,086
|
Deposits and other
assets
|
9,358
|
|
9,358
|
|
|
|
|
Total
assets
|
$ 1,324,903
|
|
$ 1,709,950
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
Current
Liabilities:
|
|
|
|
Accounts payable and
other accrued expenses
|
$ 538,988
|
|
$ 579,678
|
Accrued compensation
and related expenses
|
502,015
|
|
454,288
|
Convertible debentures
payable and accrued interest, net of discount
|
—
|
|
1,622,359
|
Current portion of
related party notes payable
|
1,342,334
|
|
1,358,120
|
|
|
|
|
Total current
liabilities
|
2,383,337
|
|
4,014,445
|
|
|
|
|
Total stockholders'
deficit
|
(1,058,434)
|
|
(2,304,495)
|
|
|
|
|
Total liabilities and
stockholders' deficit
|
$ 1,324,903
|
|
$ 1,709,950
|
|
|
|
|
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SOURCE Cryoport, Inc.