Cellular Dynamics International Reports Third Quarter 2014 Financial Results
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Total revenues for the third quarter of 2014 were $3.6 million, an increase of 41% from $2.5 million in the third quarter of last year. Net loss for the third quarter of 2014 was $8.2 million compared to $7.5 million in the third quarter of 2013.
In the nine months ended September 30, 2014, Total revenues increased by 31% to $10.1 million, compared to $7.7 million in 2013. Net loss for the nine month periods was $24.8 million in 2014 and $18.2 million in 2013.
Total revenues for the trailing twelve months ended September 30, 2014, increased 34% to $14.3 million compared to $10.7 million for the trailing twelve months ended September 30, 2013. The trailing twelve month average revenue from our top 10 customers through September 30, 2014, increased by 36% to $960,000 versus $704,000 for the same period last year. Total customers over the trailing twelve month period increased to 185 through September 30, 2014, from 142 through September 30, 2013.
“Our strong revenue growth this quarter is continued evidence of our leadership in the in vitro and stem cell banking market segments. It further demonstrates the benefits of our diversified suite of products and varying sources of revenue," said Bob Palay, Chairman and CEO of CDI. "In addition, as recently announced, during the third quarter, the National Eye Institute (NEI) awarded CDI a $1.2M contract to develop and manufacture clinically compatible induced pluripotent stem cells (iPSC's) and retinal pigmented epithelial cells (RPE's), for use in a NEI clinical program on dry age-related macular degeneration (AMD). The NEI contract is CDI's first announced deal in the cellular therapeutics market segment."
Additional financial information
• Collaborations, partnerships and other revenues grew 160% for the third quarter to $1.9 million in 2014 from $730,000 in 2013. For the nine month period, growth was 109% to $4.6 million in 2014 from $2.2 million in 2013. These increases were driven principally by activity on our contracts with the California Institute for Regenerative Medicine (CIRM) and Coriell Institute for Medical Research (Coriell), increases in revenue on our NHLBI grant with the Medical College of Wisconsin and growth in the unit volume of iCell® Hepatocytes. In addition to $828,000 of revenue from our CIRM and Coriell contracts in the third quarter, Deferred revenue related to these two contracts increased $441,000 during the third quarter and is now at $3.1 million as of September 30, 2014.
• Gross margins on Product sales remained strong at 75% for the quarter and for the nine month period.
• Total costs and expenses (excluding Cost of product sales) were $11.0 million for the third quarter, compared to $9.3 million for the same quarter last year, an increase of 18%. This growth is largely attributable to increases in Research and development expenses related to our contract with CIRM and to the continued development and order fulfillment of our iCell Hepatocytes, which are included in Collaborations, partnerships and other revenues. Sales and marketing expenses have also increased compared to the prior year quarter due to the expanding headcount in and activities of our sales and customer support staff.
• At September 30, 2014, CDI's Cash and cash equivalents totaled $41.0 million.
