On March 10, 2020 IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (TSX VENTURE: IPA) (OTCQB: IPATF) reported financial results for its fiscal year 2020 third quarter ended January 31, 2020 (Press release, ImmunoPrecise Antibodies, MAR 10, 2020, View Source [SID1234555365]).
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Revenue. The Company posted a quarterly revenue of $4,034,440, an increase of 50% from the year-ago quarter and an all-time record. The increasing revenue trend is due to growth in both the volume and financial value of client contracts. Revenue outlook is positive for the fourth quarter.
Gross Margin. During the three months ended January 31, 2020, the Company achieved a gross profit of $2,223,669.
Net Loss. The Company reported a record low for net loss of $625,837, during the three months ended January 31, 2020, representing a decrease of 47% in net loss from the year-ago quarter. The decrease in net loss is due to a $655,614 increase in gross profit, as well as recognized cost synergies resulting in lower spend, offset by higher non-cash amortization of intangible assets, depreciation of leased assets as a result of implementing IFRS 16, Leases.
Non-IFRS Measures*. For the first time in the Company’s history, Adjusted EBITDA for the quarter and the nine-month period ending January 31, 2020, was positive, at $717,716 and $18,356, respectively, compared to ($461,353) and ($1,553,090) for the same periods last year. The positive Adjusted EBITDA is a result of the third quarter’s 50% increase in revenue and lower adjusted operating expenses compared to the prior year’s quarter and nine-month period.
"We are pleased to report IPA’s record quarterly revenue and earnings, which was fueled by strong demand for a wide variety of our products and services in tool, research and therapeutic antibody discovery and manufacturing," said Jennifer Bath, IPA’s President and CEO. "Careful attention to operational prioritization, site efficiencies and brand recognition in 2019 led to new vendor qualifications from pharmaceutical and biotech companies, enabling larger allocations of corporate budgets in the 2020 calendar year. This past quarter is a powerful testament to the satisfaction and engagement of our clients, and the realization of leveraged synergies globally."
Recent ImmunoPrecise Highlights:
• IPA Launched Coronavirus Vaccine and Therapeutic Programs
• As IPA Directs R&D Efforts Toward Coronavirus, Company is Added to WHO Draft Landscape of Companies Combating COVID-19
• Company Announced AI Collaboration with EVQLV, Inc., to Accelerate the Efforts in the Development of a Coronavirus Therapeutic
• IPA Integrated SGI’s DNA Automated DNA Printer at Utrecht Site
• IPA Subsidiary, UPE, Joining Genmab and Merus in Expansion to New Biotech Accelerator in the Center of European Science Industry
IPA periodically provides information for investors on its corporate website, ImmunoPrecise.com. This includes press releases and other information on financial performance, reports filed or furnished with the TSX, information on corporate governance and details related to its annual meeting of shareholders. Reports filed or furnished with the TSX can be found at sedar.com.