Applied DNA Sciences Inc. (NASDAQ:APDN) Q3 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 04:30 pm ET


Applied DNA Sciences Inc. (NASDAQ:APDN) Q3 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Applied DNA Sciences Fiscal Third Quarter 2020 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Sanjay Hurry, Executive Director, Investor Relations. Please go ahead.

Sanjay Hurry

Thank you, Jordan. Good afternoon, everyone, and welcome to Applied DNA's conference call to discuss our fiscal third quarter 2020 business updates and financial results. You can access the press release that was issued after market close today and slide presentation accompanying this call by going to the Investors section of our website. Speaking on the call today are Dr. James Hayward, our CEO; and Beth Jantzen, our CFO. Before we begin, please note that some of the information you will hear today during our discussion may consist of forward-looking statements.

I refer you to Slide 2 of the presentation and the company's Form 10-K filed on December 12, 2019, and Form 10-Q filed a short while ago 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. We undertake 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 is my pleasure to introduce our first speaker on today's call, Beth Jantzen. Please go ahead, Beth.

Beth Jantzen

Thank you, Sanjay. Good afternoon, everyone, and thank you for joining us. I will begin this afternoon with a review of the consolidated financial results for our fiscal 2020 third quarter. Then Dr. James Hayward, our President and CEO, will update you on our COVID-19 diagnostics and vaccine development programs as well as other business progress being made in our biotherapeutic segment. We'll then open the call to your questions.

To preface my review of our quarterly financial performance, with New York observing quarantine and stay-at-home protocols during the majority of our fiscal third quarter, as an essential business as defined by the state, we kept our operations up and running as they relate to our diagnostics, vaccine and biotherapeutic, pharmaceutical and dietary supplements, mil/gov and law enforcement work and contracts. In our supply chain businesses, global demand slowed abruptly.

And as a result, we have experienced a decline in revenue from nonbiologic tagging and related services. Concurrently, we shifted much of our headcount and resources towards the fight against COVID-19 to leverage our DNA expertise and ability to manufacture linear DNA at scale, as you will hear Jim detail later. Starting with the statement of operations; total revenues for the period declined to approximately $432,000 from approximately $2.1 million in the third quarter of fiscal 2019.

The year-over-year decrease in total revenue is largely attributable to a $1 million licensing agreement fee received in the prior period from a former cannabis partner. Product revenues declined to approximately $57,000 for the period compared to approximately $393,000