Avid Bioservices, Inc. (NASDAQ:CDMO) Q1 2020 Earnings Conference Call Transcript
Sep 05, 2019 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Avid Bioservices First Quarter 2020 Financial Results Conference Call. [Operator Instructions]
I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead.
Thank you. Good afternoon, and thank you for joining us. On today's call, we have Rick Hancock, Interim President and CEO; Dan Hart, Chief Financial Officer; and Tracy Kinjerski, Vice President, Business Operations.
Today, we will be providing an overview of Avid Bioservices contract development and manufacturing business, including updates on corporate activities and financial results for the quarter ended July 31, 2019. After our prepared remarks, we will welcome your questions.
Before we begin, I'd like to caution that comments made during this conference call today, September 5, 2019, will contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the current belief of the company, which involves a number of assumptions, risks and uncertainties. Actual results could differ from these statements and the company undertakes no obligation to revise or update any statement made today. I encourage you to review all of the company's filings with the Securities and Exchange Commission concerning these and other matters.
With that, I will turn the call over to Rick Hancock, Interim President and CEO. Rick?
Richard B. Hancock
Thank you, Tim, and thank you to everyone who has dialed in, and to those who are participating today via webcast.
I am pleased to announce that Avid continued to make progress on multiple fronts during the first quarter of 2020. With respect to our financial performance, revenue for the first quarter of 2020 again beat consensus estimates and our backlog increased significantly. Dan will provide more details regarding our financial results in a moment.
With respect to business development, we signed two new contract manufacturing service agreements during the quarter, and began onboarding activities for these clients. In addition, we continued to pursue opportunities to expand existing client relationships with active discussions regarding additional batches and potential projects for the manufacture of new molecules. Activities with both potential new and existing customers were robust during the first quarter, and Tracy will provide more details on these developments.
With that, I'll turn the call over to Dan to provide a financial overview for fiscal first quarter results.
Daniel R. Hart
Thank you, Rick. Before I begin, I'd like to recommend that everyone participating referred to our 10-Q filing with the Securities and Exchange Commission, which we filed today for additional details.
I'll now discuss our financial results from continuing operations for the first quarter of fiscal 2020 ending July 31, 2019, starting with revenue. Revenue for the quarter was $15.3 million, an increase of 21% as compared to $12.6 million for the same period of the prior year. This increase was primarily the result of growth in the number and scope of customer projects.
For the first quarter of 2020, gross margin of 7% was down slightly as compared to 9% gross margin