Applied DNA Sciences Inc. (NASDAQ:APDN) Q2 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 04:30 pm ET

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Applied DNA Sciences Inc. (NASDAQ:APDN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Applied DNA Sciences Fiscal Second Quarter 2020 Conference Call. [Operator Instructions]

I would now like to turn the conference over to Judy Murrah. Please go ahead.

Executive
Judy Murrah

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our fiscal 2020 second quarter financial results conference call. A copy of the Company's earnings press release and accompanying PowerPoint presentation to this call are available for download under the Events and Presentations section to the Investors page of the Applied DNA website. With me on the call today are Dr. James Hayward, Chairman, President and CEO; and Beth Jantzen, Chief Financial Officer.

Before we begin, I would like to remind everyone that this conference call may include forward-looking statements. Please see Slide 2 of the accompanying PowerPoint presentation and the Company's SEC filings for important risk factors that could cause the Company's actual performance and results to differ materially from those expressed or implied in any forward-looking statements. Applied DNA undertakes no obligation to update or revise any forward-looking statements or other information provided on this call as a result of new information or future results or developments.

Now, it's my pleasure to introduce our first speaker to today's call, Beth Jantzen.

Executive
Beth Jantzen

Thank you, Judy. Good afternoon, everyone, and thank you for joining us. Today, I will review our consolidated financial results for our 2020 fiscal second quarter. Then Dr. James Hayward, our President and CEO, will update you on developments in our linear DNA business and especially on our COVID-19 vaccine and diagnostic development programs that have focused the Company's time and attention since the outbreak of the pandemic. Jim will then open the call to your questions.

As a result of the COVID-19 pandemic and the mandate by the state of New York to close all nonessential businesses until at least May 15th, the Company reduced the scope of its operations, and where possible, certain workers have been telecommuting from home. Portions of the Company's business are deemed to be an essential business and have continued operations, such as our government and pharmaceutical contracts, as well as the vaccine and diagnostic candidate development. However, we have experienced and may continue to experience in the future facility closures related to our nonessential businesses.

The impact of COVID-19 to revenue for the second quarter of fiscal 2020 was minimal. However, subsequent to March 31st, we have been experiencing a decline in revenues from our nonbiological tagging and related services that comprise our supply chain security business segment. This segment services certain global supply chains such as textile, that transit through geographies and countries in Asia and North America. We are actively engaged with our partners and customers to monitor business activity levels during these unprecedented times.

Regarding our biopharma activities that now take up the majority of our business development activities, we do not anticipate any barriers to continuing to manufacture linear DNA at scale for therapeutic applications and in support of our COVID-19 vaccine