Welcome!

.NET Authors: Srinivasan Sundara Rajan, Nitin Bandugula, Pat Romanski, Yakov Fain, Elizabeth White

News Feed Item

Champions Oncology Reports Financial Results for the Quarter Ended October 31, 2012

HACKENSACK, N.J., Dec. 13, 2012 /PRNewswire/ -- Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today its financial results for the fiscal quarter ended October 31, 2012.

Joel Ackerman, Champions Oncology CEO, stated, "We continue to make progress in increasing the number of TumorGrafts initiated and the size of our Tumorbank.  We expect these to drive increased value of our technology platform over the long term."

Operating revenues were $1.5 million, as compared to $1.8 million for the three months ended October 31, 2011. For the six months ended October 31, 2012 and 2011, operating revenues were $3.6 million and $3.4 million, respectively.

Total operating expenses were $3.4 million, as compared to $4.3 million for the three months ended October 31, 2011. Operating expenses were $7.1 million, as compared to $8.0 million for the six months ended October 31, 2011.

Champions reported a net loss of $2.0 million, or ($0.04) per share, as compared to a net loss of $2.3 million, or ($0.05) per share, for the three months ended October 31, 2011. For the six months ended October 31, 2012, Champions reported a net loss of $3.3 million, or ($0.07) per share, as compared to a net loss of $4.4 million, or ($0.09) per share, for the 2011 period.

Excluding stock-based compensation of $0.6 million and $0.9 million for the three months ended October 31, 2012 and 2011, Champions recognized a net loss of $1.4 million, or ($0.03) per share and a net loss of $1.5 million, or ($0.03) per share for three months ended October 31, 2012 and 2011, respectively. For the six months ended October 31, 2012 and 2011, excluding stock-based compensation of $1.4 million and $1.9 million, Champions recognized a net loss of $1.9 million, or ($0.04) per share and a net loss of $2.5 million, or ($0.05) per share, respectively.

Operating Results

Personalized Oncology Solutions (POS) revenues were $0.5 million and $0.6 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.1 million, or 17%. For the six months ended October 31, 2012 and 2011, POS revenues were $1.4 million and $1.2 million, respectively, an increase of $0.2 million, or 17%. The increase in POS revenues was driven by an increased number of drug studies completed during the six months ended October 31, 2012 compared to the same period in the previous year. During the six months ended October 31, 2012 and 2011, the Company completed 22 and 5 drug studies, respectively.  These increases are the result of the steady increase in the number of TumorGrafts performed which have moved onto drug studies.

POS cost of sales was $0.6 million and $0.5 million for the three months ended October 31, 2012 and 2011, respectively, an increase of $0.1 million, or 20%. For the six months ended October 31, 2012 and 2011, POS cost of sales was $1.4 million and $0.9 million, respectively, an increase of $0.5 million, or 56%. For the three months ended October 31, 2012 and 2011, gross margins for POS were -20% and 17%, respectively. For the six months ended October 31, 2012 and 2011, gross margins for POS were 0% and 25%, respectively.  The increases in cost of sales and the declines in gross margins can be attributed to increased volumes of implants and drug studies performed, in line with management's strategy to obtain more tumors to increase our tumor model offerings to our TOS sponsors and increase the number of models in our Tumorbank 

Translational Oncology Solutions (TOS) revenues were $1.0 million and $1.2 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.2 million, or 17%. The decrease in TOS revenues was due primarily to decreased contract bookings in the previous quarters. TOS revenues were $2.2 million for each of the six month periods ended October 31, 2012 and 2011.

TOS cost of sales was $0.5 million and $0.6 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.1 million, or 17%. For the six months ended October 31, 2012 and 2011, TOS cost of sales was $1.2 million and $1.1 million, respectively, increase of $0.1 million, or 9%. For the three months ended October 31, 2012 and 2011, gross margins for TOS were 50%. For the six months ended October 31, 2012 and 2011, gross margins for TOS were 46% and 50%, respectively. The decline in gross margin for the six month period can be attributed to additional costs associated with transitioning laboratory activities in-house from a third-party contract research organization. Specifically, we made additional investments in our infrastructure and our laboratory staff to increase productivity and to support current and expected volumes, which is expected to significantly reduce the future cost of providing our services and allow us to maintain a more competitive pricing strategy.

Research and development expense was $0.4 million and $1.0 million for three months ended October 31, 2012 and 2011, respectively, a decrease of $0.6 million, or 60%.  For the six months ended October 31, 2012 and 2011, research and development expense was $0.8 million and $1.6 million, respectively, a decrease of $0.8 million, or 50%. This decrease is primarily related to decreased laboratory maintenance costs associated with research and development efforts, in line with our strategy to focus on our POS and TOS lines of business. Additionally, the decrease can be attributed to decreased tumor procurement costs, resulting from our strategy to source models from our POS business.

Sales and marketing expense was $0.7 million for each of the three month periods ended October 31, 2012 and 2011. For the six months ended October 31, 2012 and 2011, sales and marketing expense was $1.4 million and $1.3 million, respectively, an increase of $0.1 million, or 8%.

General and administrative expense was $1.2 million and $1.5 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.3 million, or 20%.   For the six months ended October 31, 2012 and 2011, general and administrative expense was $2.3 million and $3.1 million, respectively, a decrease of $0.8 million, or 26%. This decrease can be attributed to reductions in stock-based compensation expenses and consultant costs.  The decrease in stock-based compensation expense is primarily due to large prior period stock option grants that contain performance conditions and were, and continue to be, accounted for using the accelerated attribution method.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the three and six months ended October 31, 2012 and 2011.  Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis.  Certain unusual or non-recurring items that management does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items.  Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items.  We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding.  Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company's financial results will be available in the Company's Form 10-K at www.championsoncology.com.

About Champions Oncology, Inc.

Champions Oncology, Inc. is engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs.  The Company's TumorGraft Technology Platform is a novel approach to personalizing cancer care based upon the implantation of primary human tumors in immune deficient mice followed by propagation of the resulting engraftments, or TumorGrafts, in a manner that preserves the biological characteristics of the original human tumor in order to determine the efficacy of a treatment regimen.  The Company uses this technology in conjunction with related services to offer solutions for two customer groups:  Personalized Oncology Solutions, in which results help guide the development of personalized treatment plans, and Translational Oncology Solutions, in which pharmaceutical and biotechnology companies seeking personalized approaches to drug development can lower the cost and increase the speed of developing new drugs. TumorGrafts are procured through agreements with a number of institutions in the U.S. and overseas as well as through its Personalized Oncology Solutions business.

This press release may contain "forward-looking statements" (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties.  Champions Oncology generally uses words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements.  One should not place undue reliance on these forward-looking statements.  The Company's actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors.  See Champions Oncology's Form 10-K for the fiscal year ended April 30, 2012 for a discussion of such risks, uncertainties and other factors.  Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology's future results, levels of activity, performance or achievements may not meet these expectations.  The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology's expectations, except as required by law.

Contact:
Susan Foreman
410-369-0365
[email protected]

Champions Oncology, Inc.
(Dollars in thousands except per share amounts)


Reconciliation of GAAP to Non-GAAP Net Loss


Three Months

Ended October 31,

Six Months 

Ended October 31,

2012

2011

2012

2011

Net loss – GAAP

($1,974)

($2,349)

($3,297)

($4,387)

Less:

624

855

1,364

1,868

  Stock-based compensation





Net loss - non-GAAP

($1,350)

($1,494)

($1,933)

($2,519)

 

Reconciliation of GAAP to Non-GAAP Earnings Per Share (EPS)


Three Months

Ended October 31,

Six Months

Ended October 31,

2012

2011

2012

2011

EPS – GAAP

($0.04)

($0.05)

($0.07)

($0.09)

Less:

0.01

0.02

0.03

0.04

    Effect of stock-based compensation on EPS





EPS - non-GAAP

($0.03)

($0.03)

($0.04)

($0.05)

 

Condensed Consolidated Statements of Operations (Unaudited)


Three Months

Ended October 31,

Six Months

Ended October 31,

2012

2011

2012

2011

POS operating revenue

$459

$590

$1,377

$1,188

TOS operating revenue

999

1,151

2,187

2,184

  Total operating revenue

$1,458

$1,741

$3,564

$3,372






Cost of POS

582

461

1,354

945

Cost of TOS

475

620

1,174

1,104

Research and development

436

1,008

823

1,616

Sales and marketing

680

651

1,389

1,262

General and administrative

1,201

1,470

2,340

3,130






  Loss from Operations

($1,916)

($2,469)

($3,516)

($4,685)






Other (Loss) Income

(57)

120

223

298






  Net Loss before income tax expense

($1,973)

($2,349)

($3,293)

($4,387)

Income taxes

1

-

4

-

  Net Loss

($1,974)

($2,349)

($3,297)

($4,387)






  Earnings per share- basic and diluted

($0.04)

($0.05)

($0.07)

($0.09)

Weighted average shares outstanding- basic and diluted

47,079,000

46,790,000

47,073,000

46,606,000

 

Condensed Consolidated Balance Sheets


Balance as of 

October 31, 2012

(unaudited)

April 30, 2012

 

Cash and cash equivalents

$2,161

$4,716

Accounts receivable

627

584

Other current assets

95

205

  Total current assets

2,883

5,505




Restricted cash

188

188

Property and equipment, net

485

560

Goodwill

669

669

  Total assets

$4,225

$6,922




Accounts payable and accrued liabilities

$1,723

$2,301

Deferred revenue

1,205

1,185

  Total current liabilities

2,928

3,486




Warrant liability

322

555

Redeemable common stock

8,159

8,159

Stockholders' deficit

(7,184)

(5,278)

  Total liabilities, redeemable common stock and

   stockholders' deficit

$4,225

$6,922

 

Condensed Consolidated Statements of Cash Flows (Unaudited)


Six Months Ended October 31,


2012

2011

Cash flows from operating activities:



Net Loss

($3,297)

($4,387)

Adjustments to reconcile net cash used in operations:



  Stock-based compensation expense

1,364

1,868

  Depreciation expense

103

49

  Change in fair value of warrant liability

(233)

(288)

  Changes in operating assets and liabilities

(491)

(533)

Net cash used in operating activities

(2,554)

(3,291)




Cash flows from investing activities:



  Purchases of property and equipment

(28)

(160)

Net cash used in investing activities:

(28)

(160)




Cash flows from financing activities:



  Proceeds from exercise of options and warrants

-

98

Net cash provided by financing activities:

-

98




Exchange rate effect on cash and cash equivalents

27

15

Decrease in cash and cash equivalents

(2,555)

(3,338)

Cash and cash equivalents, beginning of period

4,716

10,457

Cash and cash equivalents, end of period

$2,161

$7,119

 

SOURCE Champions Oncology, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
“The age of the Internet of Things is upon us,” stated Thomas Svensson, senior vice-president and general manager EMEA, ThingWorx, “and working with forward-thinking companies, such as Elisa, enables us to deploy our leading technology so that customers can profit from complete, end-to-end solutions.” ThingWorx, a PTC® (Nasdaq: PTC) business and Internet of Things (IoT) platform provider, announced on Monday that Elisa, Finnish provider of mobile and fixed broadband subscriptions, will deploy ThingWorx® platform technology to enable a new Elisa IoT service in Finland and Estonia.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...