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Champions Oncology Reports
Results for the Quarter and Full Year Ended April 30, 2013
June 10, 2013 - Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services
to personalize the development and use of oncology drugs, announced today its financial results for the fiscal quarter ended April
30, 2013. These financial results are unaudited and could change as a result of the year end audit.
Quarterly Highlights:
Revenue was $1.8 million,
as compared to $1.4 million for the three months ended April 30, 2012.
Total operating expenses
were $3.9 million, as compared to $4.0 million for the three months ended April 30, 2012.
Champions reported a net
loss of $2.2 million as compared to a net loss of $2.6 million for the three months ended April 30, 2012.
Excluding stock-based compensation
of $0.5 million and $0.7 million for the three months ended April 30, 2013 and 2012, Champions recognized a net loss of $1.7 million
and a net loss of $1.9 million for three months ended April 30, 2013 and 2012, respectively.
Personalized Oncology Solutions
The number of implants
during the quarter was 42, an increase of 56% over the same period last year. The increase in implants is the result of growing
visibility with patients and physicians, the reduction in patient costs per implant and the recent opening of an office in Singapore.
The number of patients for whom studies were completed was 17 for the quarter, an increase of 70% over the same period last year.
POS revenues were $0.48 million and $0.49 million for the three months ended April 30, 2013 and 2012, respectively, a decline of
3%. This slight decline was the result of a decline in the revenue from panels and sequencing, offset by an 11% increase in drug
POS cost of sales was $0.6
million and $0.9 million for the three months ended April 30, 2013 and 2012, respectively, a decrease of $0.3 million, or 33%.
For the three months ended April 30, 2013 and 2012, gross margins for POS were -32% and -80%, respectively. The variability in
POS margins is the result of variability in the mix of POS revenue each quarter as well as the changes we made in pricing over
Translational Oncology
TOS revenues were $1.3
million and $0.9 million for the three months ended April 30, 2013 and 2012, respectively, an increase of $0.4 million, or 44%.
TOS cost of sales was $0.9
million and $0.6 million for the three months ended April 30, 2013 and 2012, respectively, an increase of $0.3 million, or 50%.
For the three months ended April 30, 2013 and 2012, gross margins for TOS were 30% and 28%.
Research and development
expense was $0.5 million and $0.4 million for three months ended April 30, 2013 and 2012, respectively, an increase of $0.1 million,
Sales and marketing expense
was $0.6 million and $1.0 million for the three months ended April 30, 2013 and 2012, respectively, a decrease of $0.4 million,
or 40%. The decrease is the result of efficiencies achieved in selling efforts and the redeployment of resources to other activities.
General and administrative
expense was $1.2 million and $1.0 million for the three months ended April 30, 2013 and 2012, respectively, an increase of $0.2
million, or 20% due to the continued growth of the Company.
Conference Call Information:
The Company will host a
conference call on Monday, June 10, 2013, at 4:30 p.m. ET to discuss its fourth quarter financial results. To access the conference
call, domestic participants should dial 800-874-4559, Canadian participants should dial 800-696-0876, and international participants
should dial 302-607-2019. The participant passcode is "Champions Oncology".
of the Company's financial results will be available in the Company's Form 10-K at www.championsoncology.com.
* 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
loss per share amounts for the three and nine months ended April 30, 2013 and 2012. 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. We define
non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding.
Our 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
its Personalized Oncology Solutions business.
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, 2012 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are
made, and Champions Oncology's future results, levels of activity, performance or achievements may not meet these expectations.
The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these
statements to actual results or to changes in Champions Oncology's expectations, except as required by law.
Champions Oncology, Inc.
(Dollars in thousands
except per share amounts)
Reconciliation of GAAP
to Non-GAAP Net Loss (Unaudited)
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net loss - GAAP | $ | (2,167 | ) | $ | (2,564 | ) | $ | (6,446 | ) | $ | (8,663 | ) | ||||
| Less: | 485 | 711 | 2,419 | 3,323 | ||||||||||||
| Stock-based compensation | ||||||||||||||||
| Net loss - non-GAAP | $ | (1,682 | ) | $ | (1,853 | ) | $ | (4,027 | ) | $ | (5,340 | ) |
Condensed Consolidated
Statements of Operations (Unaudited)
| Three Months Ended April 30, | Year Ended April 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| POS operating revenue | $ | 482 | $ | 495 | $ | 2,332 | $ | 2,332 | ||||||||
| TOS operating revenue | 1,302 | 886 | 5933 | 4817 | ||||||||||||
| Total operating revenue | $ | 1,784 | $ | 1,381 | $ | 8,266 | $ | 7,149 | ||||||||
| Cost of POS | 637 | 893 | 2667 | 2356 | ||||||||||||
| Cost of TOS | 912 | 639 | 2651 | 2543 | ||||||||||||
| Research and development | 502 | 378 | 1918 | 2937 | ||||||||||||
| Sales and marketing | 621 | 1,044 | 2668 | 2929 | ||||||||||||
| General and administrative | 1,224 | 1,029 | 4709 | 5450 | ||||||||||||
| Loss from Operations | $ | (2,112 | ) | $ | (2,602 | ) | $ | (6,347 | ) | $ | (9,065 | ) | ||||
| Other (Loss) Income | (55 | ) | 38 | (99 | ) | 402 | ||||||||||
| Net Loss before income tax expense | $ | (2,167 | ) | $ | (2,564 | ) | $ | (6,446 | ) | $ | (8,663 | ) | ||||
| Income taxes | - | - | - | - | ||||||||||||
| Net Loss | $ | (2,167 | ) | $ | (2,564 | ) | $ | (6,446 | ) | $ | (8,663 | ) |
Condensed Consolidated
Balance Sheets (Unaudited)
| April 30, | April 30, | |||||||
| 2013 | 2012 | |||||||
| Cash and cash equivalents | $ | 9,563 | $ | 4,717 | ||||
| Accounts receivable | 497 | 584 | ||||||
| Other current assets | 357 | 204 | ||||||
| Total current assets | 10,418 | 5,505 | ||||||
| Restricted cash | 192 | 188 | ||||||
| Property and equipment, net | 413 | 560 | ||||||
| Goodwill | 669 | 669 | ||||||
| Total assets | $ | 11,693 | $ | 6,921 | ||||
| Accounts payable and accrued liabilities | $ | 1,872 | $ | 2,300 | ||||
| Deferred revenue | 1,171 | 1,185 | ||||||
| Total current liabilities | 3,043 | 3,485 | ||||||
| Warrant liability | 1,046 | 555 | ||||||
| Redeemable common stock | 16,882 | 8,159 | ||||||
| Stockholders' deficit | (9,278 | ) | (5,277 | ) | ||||
| Total liabilities, redeemable common stock and stockholders' deficit | $ | 11,693 | $ | 6,921 |
Condensed Consolidated
Statements of Cash Flows (Unaudited)
| Year Ended | ||||||||
| April 30, | ||||||||
| 2013 | 2012 | |||||||
| Cash flows from operating activities: | ||||||||
| Net Loss | $ | (6,446 | ) | $ | (8,661 | ) | ||
| Adjustments to reconcile net cash used in operations: | ||||||||
| Stock-based compensation expense | 2,419 | 3,323 | ||||||
| Depreciation expense | 203 | 105 | ||||||
| Change in fair value of warrant liability | 74 | (417 | ) | |||||
| Changes in operating assets and liabilities | (513 | ) | 423 | |||||
| Net cash used in operating activities | (4,262 | ) | (5,227 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (57 | ) | (519 | ) | ||||
| Net cash used in investing activities: | (57 | ) | (519 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Private placement of common shares and warrants | 9,141 | 97 | ||||||
| Net cash provided by financing activities: | 9,141 | 97 | ||||||
| Exchange rate effect on cash and cash equivalents | 25 | (54 | ) | |||||
| Increase in cash and cash equivalents | 4,847 | (5,703 | ) | |||||
| Cash and cash equivalents, beginning of period | 4,716 | 10,457 | ||||||
| Cash and cash equivalents, end of period | $ | 9,563 | $ | 4,754 |