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Champions Oncology Reports
Results for Quarter and Full Year Ended April 30, 2015
July 28, 2015 - Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services
to personalize the development and use of oncology drugs, today announced its financial results for the year ended April 30, 2015.
Fourth Quarter and Recent
Business Highlights:
Joel Ackerman, Champions
Oncology CEO, stated, "The end of fiscal 2015 is an opportune time to assess the accomplishments and challenges of the past
year. While the Company experienced an anticipated slowdown in revenue growth in the earlier part of the year, the foundation for
long term success and operational improvements continued to progress. The $14 million of capital raised during the year demonstrated
continued investor confidence in the Company and provides the ability to execute our strategic vision."
For the fourth quarter
of 2015, revenue was $3.2 million, as compared to $2.5 million for the three months ended April 30, 2014, an increase of 32%.
For the twelve-month period ended April 30, 2015, revenue was $8.9 million, as compared to $11.6 million for the same period of
the prior year, a decrease of 23%. Total operating expense for the fourth quarter 2015 was $5.7 million as compared to $4.8 million
for the fourth quarter 2014. For the twelve months ended April 30, 2015, total operating expense was $22.1 million, as compared
to $17.8 million for the twelve months ended April 30, 2014.
quarter of 2015 and 2014, Champions reported a loss from operations of $2.4 million. Excluding stock-based compensation of $0.9
million and $0.8 million for the three months ended April 30,
2015 and 2014, Champions recognized a loss from operations of $1.5 million and $1.4 million respectively. For the twelve months
ended April 30, 2015, Champions reported a loss from operations of $13.2 million as compared to a loss from operations of $6.3
million for the twelve months ended April 30, 2014. Excluding stock-based compensation of $3.2 million and $2.8 million for the
twelve months ended April 30, 2015 and 2014, Champions recognized a loss from operations of $10.0 million and $3.5 million respectively.
The number of implants
during the quarter was 143 consisting of 51 commercial implants and 92 implants from research partnerships and trials. Total implants
increased 39% over the same period last year with a 149% increase in implants from research partnerships. The increase in research
implants were the result of continued effort to expand our TumorBank by partnering with academic medical centers. These implants
will further the Company's efforts to increase the scale of our platform.
was $418,000 and $430,000 for the three months ended April 30, 2015 and 2014, respectively, a decrease of $12,000 or 3%.
Core revenue from our TumorGraft technology platform decreased $35,000 or 9%. This decrease is due
to the cessation of implant activities in our Singapore entity due to regulatory restrictions. Non-core POS revenue increased
$24,000. POS revenue was $1.7 million and $2.3 million for the twelve months ended April 30, 2015 and 2014, respectively, a decrease
of $0.6 million or 27%. The decrease is due to a reduction in the number of tests per panel resulting in a $300,000 decrease in
panel revenue. Non-core revenue decreased $212,000.
POS cost of sales was $543,000
and $628,000 for the three months ended April 30, 2015 and 2014, respectively, a decrease of $85,000, or 14%. POS cost of sales
was $2.73 million for both the twelve months ended April 30, 2015 and 2014. For the three months ended April 30, 2015 and 2014,
gross margin for POS was negative 30% and negative 46%, respectively. For the twelve months ended April 30, 2015 and 2014, gross
margin for POS was negative 64% and negative 21%, respectively. The decline in gross margin is attributed to the decrease in core
POS revenue and a fixed cost component to the cost of sales. Non-core revenue, which has a lower cost of sale and higher margins,
declined, contributing to the lower overall margins in POS.
Translational Oncology
TOS revenue was $2.8 million
and $2.0 million for the three months ended April 30, 2015 and 2014, respectively, an increase of $0.8 million or 39%. TOS revenue
was $7.2 million and $9.3 million for the twelve months ended April 30, 2015 and 2014, respectively, a decrease of $2.1 million,
or 23%. The decline is largely due to a slower conversion of bookings to revenue.
TOS cost of sales was
$1.7 million and $1.0 million for the three months ended April 30, 2015 and 2014, respectively, an increase of $0.7 million, or
74%. TOS cost of sales was $4.9 million and $3.5 million for the twelve months ended April 30, 2015 and 2014, respectively, an
increase of $1.4 million, or 39%. For the three months ended April 30, 2015 and 2014, gross margin for TOS was 41% and 52%, respectively.
Gross margin fluctuates from quarter to quarter generally due to the timing of revenue recognition. Gross margin for the quarter
was below usual levels due to an increase in TOS studies whose revenue will be recognized upon study completion. For the twelve
months ended April 30, 2015 and 2014, gross margin for TOS was 32% and 62%, respectively.
Research and development
expense was $1.1 million and $663,000 for the three months ended April 30, 2015 and 2014, respectively. Research and development
expense was $4.8 million and $2.3 million for the twelve months ended April 30, 2015 and 2014, respectively. The increase is largely
due to investment in characterizing the TumorBank. Sales and marketing expense for the three months ended April 30, 2015 and 2014
was $943,000 and $1.0 million respectively. Sales and marketing expense for the twelve months ended April 30, 2015 and 2014 was
$4.3 million and $3.2 million, respectively. The increase was the result of the expansion of the TOS sales force offset by reduced
sales and marketing expense for POS. General and administrative expense for the three months ended April 30, 2015 and 2014 was
$1.4 million and $1.5 million, respectively. General and administrative expense for the twelve months ended April 30, 2015 and
2014 was $5.3 million and $6.1 million, respectively.
Conference Call Information:
The Company will host a
conference call today at 9:00 a.m. EST (6:00 a.m. PST) to discuss its fourth quarter and fiscal year 2015 financial results. To
access the conference call, domestic participants should dial 800-875-3456, Canadian participants should dial 800-648-0973, and
international participants should dial 302-607-2001. The participant passcode is "Champions Oncology."
of the Company's financial results will be available Wednesday, July 29, 2015 in the Company's Form 10-K at
* Non-GAAP Financial
See the attached Reconciliation
of GAAP net loss to non-GAAP net loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP
net loss per share amounts for the three and twelve months ended April 30, 2015 and 2014. Non-GAAP financial measures provide investors
and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before
and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management
does not believe affect the Company's basic operations do not meet the GAAP definition of unusual or non-recurring items.
Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. Champions'
defines non-GAAP dilutive loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares
outstanding. Champions' definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named
measures used by others.
About Champions Oncology, Inc.
Champions Oncology, Inc. is engaged in
the development of advanced technology solutions and services to personalize the development and use of oncology drugs. The Company's
TumorGraft technology platform is a novel approach to personalizing cancer care based upon the implantation of primary human tumors
in immune deficient mice followed by propagation of the resulting engraftments, or TumorGrafts, in a manner that preserves the
biological characteristics of the original human tumor in order to determine the efficacy of a treatment regimen. The Company uses
this technology in conjunction with related services to offer solutions for two customer groups: Personalized Oncology Solutions,
in which results help guide the development of personalized treatment plans, and Translational Oncology Solutions, in which pharmaceutical
and biotechnology companies seeking personalized approaches to drug development can lower the cost and increase the speed of developing
new drugs. TumorGrafts are procured through agreements with a number of institutions in the U.S. and overseas as well as through
Champions' Personalized Oncology Solutions business. For more information, please visit www.championsoncology.com.
This press release may contain "forward-looking
statements" (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties.
Champions Oncology generally uses words such as "believe," "may," "could," "will," "intend,"
"expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. One
should not place undue reliance on these forward-looking statements. The Company's actual results could differ materially from
those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology's Form 10-K for the fiscal
year ended April 30, 2015 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations