Cryoport Revenues Increased 151% for the First Half of Fiscal 2014
Market acceptance gaining traction
LAKE FOREST, Calif.--(BUSINESS WIRE)-- Cryoport, Inc. (OTCBB: CYRX) today announced financial results for the quarter and six months ended September 30, 2013.
Net revenues were $1,067,790 for the six months ended September 30, 2013, as compared to $424,896 for the six months ended September 30, 2012. The $642,894 growth, or 151% increase, was primarily driven by Cryoport’s Integrated Solution and overall growth in the number of customers using Cryoport Express® Solutions compared to the same period in the prior year.
Gross margin for the six months ended September 30, 2013 was 12% of net revenues, or $126,744, as compared to a gross loss of 64% of net revenues, or $273,162, for the six months ended September 30, 2012. Cost of revenues for the six months ended September 30, 2013 was 88% of net revenues, or $941,046, representing Cryoport’s first positive gross margin. This compared to cost of revenues of 164% of net revenues, or $698,058, for the six months ended September 30, 2012.
Cryoport’s Chief Executive Officer, Jerrell Shelton, commented, “I'm pleased to report continued revenue growth and a positive gross profit for the quarter and the first half of our fiscal year. Our sales and marketing strategies are gaining momentum as evidenced by our reported revenue and continue to be fueled by a very active and growing sales pipeline. In addition, we continue to move forward with our ‘powered by CryoportSM’ partnering strategy designed to expand our sales and marketing reach as well as to increase the awareness of our solutions in the life sciences community. More and more companies have started relying on our validated and technology-centric solutions and expertise in time- and temperature-sensitive logistics. We now have experienced eight consecutive quarters of revenue growth and expect to further accelerate our sales trajectory as implied by our current momentum.
“Moving forward, we will maintain our long-term view of the market opportunity and stay true to our strategic plan. Our goal is to be the leading provider of logistics services to the life sciences industry. We are successfully transitioning from a ‘one service fits all’ approach to being a logistics solutions company developing customized plans to meet client-defined needs. In addition to sales of our basic turnkey solution, our customer-integrated solution is being particularly well received, and we also have customers utilizing our customer-staged, customer-managed, and distribution partner models. In fact, we are experiencing increased attention from integrators, specialty couriers, and freight forwarders, which provides us with additional opportunities for revenue producing partnerships. We have doubled our customer base over the past six months and are in the early adaption stages with a significant number of larger life sciences companies. Revenues related to reproductive medicine, in-vitro fertilization, in particular, are increasing, as is our animal husbandry business.
"During this current fiscal 2014 and beyond, I believe we can drive shareholder value by becoming even more effective in increasing market awareness, closing sales, serving customer needs, efficiently managing expenses, and prudently investing capital in support of our growth plans. The Cryoport team is motivated for success.”
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, 2013 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 frozen shipping logistics solutions to the life sciences industry through the combination of purpose-built proprietary hardware and software technologies and skilled total turnkey 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 manages the entire shipment 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 visit www.cryoport.com.
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, 2013. 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, INC. | |||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
| September 30, | March 31, | ||||||||||||||||||
| 2013 | 2013 | ||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Current assets: | |||||||||||||||||||
| Cash and cash equivalents | $ | 532,469 | $ | 563,104 | |||||||||||||||
| Accounts receivable, net of allowances of $16,800 at September 30, 2013 and $8,700 at March 31, 2013 | 387,669 | 217,097 | |||||||||||||||||
| Inventories | 43,305 | 39,212 | |||||||||||||||||
| Other current assets | 40,685 | 138,892 | |||||||||||||||||
| Total current assets | 1,004,128 | 958,305 | |||||||||||||||||
| Property and equipment, net | 516,628 | 505,485 | |||||||||||||||||
| Intangible assets, net | 216,817 | 272,263 | |||||||||||||||||
| Deposits and other assets | 19,744 | 19,744 | |||||||||||||||||
| Total assets | $ | 1,757,317 | $ | 1,755,797 | |||||||||||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||||||||||||||
| Current liabilities: | |||||||||||||||||||
| Accounts payable and accrued expenses | $ | 602,957 | $ | 858,709 | |||||||||||||||
| Accrued compensation and related expenses | 342,427 | 217,432 | |||||||||||||||||
| Convertible debentures payable and accrued interest | - | 1,304,419 | |||||||||||||||||
| Current portion of related party notes payable | 96,000 | 96,000 | |||||||||||||||||
| Derivative liabilities | 1,199 | 20,848 | |||||||||||||||||
| Total current liabilities | 1,042,583 | 2,497,408 | |||||||||||||||||
| Related party notes payable and accrued interest, net of current portion | 1,292,612 | 1,321,664 | |||||||||||||||||
| Total liabilities | 2,335,195 | 3,819,072 | |||||||||||||||||
| Commitments and contingencies | |||||||||||||||||||
| Stockholders' deficit: | |||||||||||||||||||
|
Preferred stock, $0.001 par value, 2,500,000 shares authorized, none issued and outstanding |
- | - | |||||||||||||||||
| Common stock, $0.001 par value; 250,000,000 shares authorized; 58,369,280 shares issued and outstanding at September 30, 2013 and 37,760,628 shares issued and outstanding at March 31, 2013 | 58,146 | 37,761 | |||||||||||||||||
| Additional paid-in capital | 81,958,609 | 64,210,412 | |||||||||||||||||
| Accumulated deficit | (82,594,633 | ) | (66,311,448 | ) | |||||||||||||||
| Total stockholders' deficit | (577,878 | ) | (2,063,275 | ) | |||||||||||||||
| Total liabilities and stockholders' deficit | $ | 1,757,317 | $ | 1,755,797 | |||||||||||||||
| CRYOPORT, INC. | ||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
| Net revenues | $ | 579,827 | $ | 233,597 | $ | 1,067,790 | $ | 424,896 | ||||||||||||||||||
| Cost of revenues | 507,725 | 344,440 | 941,046 | 698,058 | ||||||||||||||||||||||
| Gross margin (loss) | 72,102 | (110,843 | ) | 126,744 | (273,162 | ) | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Selling, general and administrative | 1,240,413 | 1,341,333 | 2,462,487 | 2,610,607 | ||||||||||||||||||||||
| Research and development | 118,436 | 101,656 | 211,079 | 210,607 | ||||||||||||||||||||||
| Total operating expenses | 1,358,849 | 1,442,989 | 2,673,566 | 2,821,214 | ||||||||||||||||||||||
| Loss from operations | (1,286,747 | ) | (1,553,832 | ) | (2,546,822 | ) | (3,094,376 | ) | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||
| Debt conversion expense | (13,161,017 | ) | — | (13,161,017 | ) | — | ||||||||||||||||||||
| Interest expense | (512,776 | ) | (11,759 | ) | (594,995 | ) | (36,359 | ) | ||||||||||||||||||
| Change in fair value of derivative liabilities | 892 | 14,489 | 19,649 | 33,824 | ||||||||||||||||||||||
| Total other income (expense), net | (13,672,901 | ) | 2,730 | (13,736,363 | ) | (2,535 | ) | |||||||||||||||||||
| Loss before income taxes | (14,959,648 | ) | (1,551,102 | ) | (16,283,185 | ) | (3,096,911 | ) | ||||||||||||||||||
| Income taxes | — | 1,600 | — | 1,600 | ||||||||||||||||||||||
| Net loss | $ | (14,959,648 | ) | $ | (1,552,702 | ) | $ |
(16,283,185 |
) |
$ | (3,098,511 | ) | ||||||||||||||
| Net loss per common share, basic and diluted | $ | (0.38 | ) | $ | (0.04 | ) | $ | (0.42 | ) | $ | (0.08 | ) | ||||||||||||||
| Basic and diluted weighted average common shares outstanding | 39,110,774 | 37,760,628 | 38,589,663 | 37,760,628 | ||||||||||||||||||||||
Cryoport, Inc.
Robert Stefanovich, 619.481.6802
rstefanovich@cryoport.com
Source: Cryoport, Inc.
Released November 18, 2013