Applied DNA Sciences Inc (APDN) Q3 2024 Earnings Call Highlights: Navigating Revenue Declines ...

In This Article:

  • Total Revenue: $798,000, a decline of $2.1 million from $2.9 million in the prior year.

  • Clinical Laboratory Service Revenue: Decreased by $1.85 million due to the conclusion of the COVID surveillance testing contract.

  • Gross Profit: $245,000 or 31%, down from $1.3 million or 44% in the prior year.

  • Total Operating Expenses: Decreased by $500,000 to $3.6 million from $4.1 million in the prior year.

  • Operating Loss: $3.3 million compared to $2.9 million in the prior year.

  • Adjusted EBITDA: Negative $3.2 million, a decrease of $1.1 million from negative $2.1 million in the prior year.

  • Cash and Cash Equivalents: $10.4 million as of June 30, up from $7.2 million on September 30, 2023.

  • Average Monthly Cash Burn: $1.3 million for the third quarter, up from $500,000 in the prior year.

  • Accounts Receivable: $531,000 as of June 30, with the majority collected after the quarter ended.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Applied DNA Sciences Inc (NASDAQ:APDN) has strengthened its balance sheet with a public offering, increasing cash and cash equivalents to $10.4 million as of June 30, 2024.

  • The company has received full New York State Department of Health approval for a laboratory-developed test and launched TR8 PGx, a pharmacogenomic testing service.

  • A multiyear agreement with Indus Group, a key global cotton apparel manufacturer, potentially expands the addressable market for Applied DNA's cotton tagging services.

  • The company is on track to complete its GMP facility for enzymatic DNA IVT template production by September 30, 2024, which is expected to drive future revenue growth.

  • Applied DNA Sciences Inc (NASDAQ:APDN) is being onboarded as a validated GMP vendor by two customers, with plans to supply IVT templates for mRNA clinical trial materials in early 2025.

Negative Points

  • Total revenues for the third quarter of fiscal 2024 declined by $2.1 million year-over-year, primarily due to the conclusion of a COVID surveillance testing contract.

  • Gross profit decreased significantly to $245,000 from $1.3 million in the prior year, largely due to reduced COVID-19 testing volumes.

  • The company reported an operating loss of $3.3 million for the third quarter, an increase from $2.9 million in the prior fiscal period.

  • Applied DNA Sciences Inc (NASDAQ:APDN) has a substantial doubt of a going concern, dependent on generating revenues or raising capital.

  • The company is not in compliance with Nasdaq's minimum bid price requirements, with a deadline to regain compliance by January 8, 2025.