Champions Biotechnology Reports Fiscal 2011 First Quarter Financial Results
Baltimore, MD – September 10, 2010 – Champions Biotechnology, Inc. (OTC Bulletin Board: CSBR), a company engaged in the development of advanced preclinical platforms and tumor specific data to enhance the value of oncology drugs, today announced its financial results for the fiscal 2011 first quarter ended July 31, 2010. Full details of the Company’s financial results will be available in the Company’s Form 10-Q at www.championsbiotechnology.com.
Total revenues for the first quarter of fiscal 2011 were $1.6 million compared to $962,000 in the first quarter of fiscal 2010, an increase of 66%. Revenues from Personalized Oncology were $1.1 million compared to $899,000 in the corresponding quarter of the prior year, an increase of 23%. Revenues from Preclinical eValuation were $491,000 for the quarter compared to $63,000 in the corresponding quarter of the prior year, an increase of 679%. The increase in Preclinical eValuation was a result of the Company beginning to recognize revenues in its second full year of providing Preclinical services. Cost of Personalized Oncology services for the first quarter of 2011 was $324,000 which resulted in a gross margin of 71% as compared to 29% in the corresponding 2010 fiscal quarter. The increase in gross margin was due to a greater mix of higher-margin business. Cost of Preclinical eValuation services for the first quarter of fiscal 2011 was $222,000 which resulted in a gross margin of 55% as compared to 46% in the corresponding 2010 fiscal quarter. The increase in gross margin in 2011 resulted from increased pricing efficiencies realized in the Company’s second full year of operations.
Research and development (“R&D”) expenses for the first quarter of fiscal 2011 were $919,000 as compared to $496,000 in the first quarter of fiscal 2010. The increase in R&D expenses in 2011 was mainly due to costs associated with the development and testing of the Company’s four drug compounds and the acquisition of Tumorgrafts as the Company continues to expand its tumorgraft platform. General and administrative expenses for first quarter of fiscal 2011 were $738,000 as compared to $806,000 in fiscal 2010. The decrease was primarily attributable to the Company’s consolidation of its operations to Baltimore, Maryland.
For the first quarter of fiscal 2011, the Company reported a net loss of $591,000, or ($0.02) per share, compared to a net loss of $1.0 million, or ($0.03) per share, in the corresponding quarter of fiscal 2010. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $180,000 or ($0.01) per share, in the first quarter of 2011 compared to $58,000, or ($0.00) per share, in the first quarter of 2010. The Company’s cash position on July 31, 2010 was $2.1 million compared to $2.6 million on April 30, 2010.
First Quarter Highlights:
- Experienced an increase in top-line revenues of 66% with overall gross margins increasing from 31% to 66%, year-over-year;
- Experienced year-over-year top-line revenue growth of 679% in the Preclinical eValuation business;
- Continued to expand its Biomerk Tumorgraft platform to approximately 350 tumorgrafts which are available and/or in development at July 31, 2010, representing all of the major solid tumor indications;
- Hired a Preclinical Sales Director to oversee direct sales of Preclinical eValuation services; and
- Began to offer genome sequencing as part of its Personalized Oncology services.
David Sidransky, M.D., Chairman of the Board of Champions Biotechnology, Inc., noted, “The 2011 first quarter results are positive. As we move into 2011, we continue to see strong results from both Preclinical eValuation and Personalized Oncology. In addition, with the hiring of our Preclinical Sales Director in August 2010, we are positioned to reach out to more pharmaceutical companies that can utilize our Preclinical eValuation platform.”