Avid Bioservices, Inc. (NASDAQ:CDMO) Q2 2020 Earnings Conference Call - Final Transcript

Dec 09, 2019 • 04:30 pm ET


Avid Bioservices, Inc. (NASDAQ:CDMO) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Avid Bioservices' Second Quarter 2020 Financial Results Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions]

I would now like to turn the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead.

Tim Brons

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 October 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, December 9, 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. During the second quarter, increased productivity and efficiency drove positive results across the organization and I'm happy to provide an overview of the progress made during the period.

I'll begin by stating that revenue for the second quarter of 2020 was the highest that Avid has recorded in the last two years. In addition, our backlog and other financial metrics were strong during the quarter, and Dan will provide more details regarding our financial results in a moment. On the business development front, we continue to have a strong presence in the market with the goal of attracting new business and we are advancing multiple discussions to expand our scope of work with several current customers. Tracy will provide an update on these activities. We also achieved several important milestones operationally during the quarter and we believe -- that we believe will enhance our services, offerings and contribute to the continued growth of our business. I'll provide more details on these accomplishments following an overview of our second quarter financial results.

With that, I'll turn the call over to Dan.

Daniel R. Hart

Thank you, Rick. Before I begin, I'd like to recommend that everyone participating on today's call refer 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 for continuing operations for the second quarter and the first six months of fiscal 2020 ended October 31 2019. I'll first address our second quarter results. Revenue for the quarter