Press Release Details
Twist Bioscience Reports Second Quarter Fiscal 2019 Financial Results and Highlights Commercial and Operational Progress
-- Reports Record Revenue of
-- Increasing Orders Show Sequential Growth in Synthetic Biology and Next-Generation Sequencing Products --
-- Updates Fiscal 2019 Financial Guidance --
“We continue to post strong topline growth as we extend our reach and diversify our revenue stream from our synbio customers,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist. “For NGS, we continue to expand our base of customers rapidly, adding several in production and a larger number in pilot. Importantly, we launched our biopharma capabilities in April at The Essential Protein Engineering Summit, or PEGS, the beginning of what promises to be an exciting division of the company.”
Leproust continued, “This quarter, we reported a positive gross margin
of
FISCAL 2019 SECOND QUARTER FINANCIAL RESULTS
- Orders: Total orders received for the three months ended
March 31, 2019 were$16.7 million , compared to$8.5 million for the same period of fiscal 2018. - Revenue: Total revenues were
$13.6 million for the three months endedMarch 31, 2019 compared to$6.2 million for the same period of fiscal 2018. - Cost of Revenues: Cost of revenues for the three months ended
March 31, 2019 was$11.8 million compared to$8.1 million for the similar period of fiscal 2018. - Research and Development Expenses: Research and development
expenses for the three months ended
March 31, 2019 were$8.9 million compared to$4.7 million for the same period of fiscal 2018. - Selling, General and Administrative Expenses: Selling, general
and administrative expenses for the three months ended
March 31, 2019 were$19.1 million compared to$10.0 million for the same period of fiscal 2018. - Net Loss: Net loss for the fiscal 2019 second quarter was
$25.9 million , or$0.93 per share, compared to$16.9 million , or$6.32 per share, for the fiscal 2018 second quarter. - Cash Position: As of
March 31, 2019 , the company had$104.3 million in cash, cash equivalents and short term investments.
“In addition to raising our revenue guidance based on strong first half
results, our positive gross margin of
Fiscal Second Quarter 2019 and Recent Highlights
- Continued diversification of synthetic biology revenue
- Current turnaround time for 1.8 kb genes decreased to 13 days; turnaround time for 3-5 kb genes decreased to 14 days
- Continued conversion of NGS product line customers, having shipped to > 100 customers in the second quarter of fiscal 2019 with 24 customers now in production mode
- Introduced new products for NGS early access customers at the 2019 Advances in Genome Biology and Technology (AGBT) meeting. New products include Twist Fast Hybridization and Wash Kit, Twist Universal Blockers to allow flexible blocking and improved on-target capture; the Twist Universal Adapter System, to maximize performance for library preparation and enabling high multiplexing; and, the Twist Mechanical Fragmentation Library Prep Kit for highly-degraded samples
- Presented early proof-of-concept data from the GPCR library and antibody optimization solution for Twist Biopharma at the annual PEGS meeting
- Formed strategic collaboration with LakePharma to provide antibody discovery and development services
- Signed antibody optimization agreement with Pandion Therapeutics to apply our antibody optimization solution to the targeting arm of a bispecific antibody
- Began contract negotiations with a government entity for a non-dilutive financing contract to facilitate DNA data storage
- Expanded the biosecurity program with the addition of Battelle’s ThreatSEQ™ for DNA screening
-
Announced move of manufacturing facilities into
South San Francisco
Fiscal 2019 Objectives
SynBio
- Offer customers 5 kb genes at disruptive price – Complete
- Introduce Twist Application Programmable Interface (TAPI) for gene ordering - Complete
- Implement and execute new product introductions roadmap
Genomics and Targeted NGS
- Achieve ISO 13485:2016 certification for quality management systems
(NGS TE Panels) – Complete; Extension for
South San Francisco facility to be completed early 4QFY19 - Convert pilot NGS customers to full production - Ongoing
- Launch e-commerce platform for NGS products in the first half of 2019
- Leverage growth in top line to improve variable and gross margin
-
Launch back-end production in
China for NGS and other products
Biopharma
- Generate early proof-of-concept data from the GPCR library and antibody optimization software for Twist Biopharma – Complete
- Expand proof of concept data packages for the GPCR antibody library and the bio-better programs
- Advance the antibody discovery and optimization programs through non-dilutive collaborations - Ongoing
- Longer-term: seek revenue-generating partnerships
DNA
- Execute roadmap to increase synthesis density on silicon platform and reduce DNA writing cost for DNA digital data storage
- Pursue non-dilutive funding for the continued development of DNA digital data storage
Financial Guidance
For the full fiscal year 2019, Twist is updating its guidance:
-
Revenue in the range of
$50 million to $52 million -
Net loss in the range of
$97 million to $99 million to reflect accelerated investment in R&D, consistent with our strategy to continually offer improved products and new offerings to solidify our leadership position in the space. We continue to invest in our commercial organization as we anticipate revenue growth. In addition, we expect additional incremental costs associated with ourChina facility build-out and the consolidation of our operations and R&D efforts at our SSF facility. We believe these investments position us for continued growth in the near- and long-term.
Conference Call Information
The call can be accessed by dialing (866) 688-0947 (domestic) or (409)
217-8781 (international) and refer to the conference ID 2244119. A
telephonic replay of the conference call will be available beginning
approximately four hours after the call through
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Investor Relations Information
Twist uses the investor relations section on its website as a means of
complying with its disclosure obligations under Regulation FD.
Accordingly, investors should monitor Twist's investor relations website
in addition to following Twist's press releases,
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements
other than statements of historical facts contained herein are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, including, but
not limited to, Twist Bioscience’s anticipated fiscal 2019 milestones,
conversion of pilot customers, revenue growth across all product
categories and geographic regions, validation of Twist’s GPCR and
antibody optimization software for Twist Biopharma and delivery on
Twist’s mission to improve healthcare and sustainability through
synthetic DNA. Such forward-looking statements involve known and unknown
risks, uncertainties, and other important factors that may cause Twist
Bioscience’s actual results, performance, or achievements to be
materially different from any future results, performance, or
achievements expressed or implied by the forward-looking statements.
Such risks and uncertainties include, among others, the risks and
uncertainties of the ability to attract new customers and retain and
grow sales from existing customers; risks and uncertainties of rapidly
changing technologies and extensive competition in synthetic biology
could make the products
Twist Bioscience Corporation Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data) |
||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues | $ | 13,557 | $ | 6,166 | $ | 25,049 | $ | 10,479 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues | 11,789 | 8,095 | 23,646 | 15,593 | ||||||||||||
Research and development | 8,907 | 4,711 | 16,180 | 9,014 | ||||||||||||
Selling, general and administrative | 19,124 | 9,978 | 34,383 | 19,241 | ||||||||||||
Total operating expenses | 39,820 | 22,784 | 74,209 | 43,848 | ||||||||||||
Loss from operations | (26,263 | ) | (16,618 | ) | (49,160 | ) | (33,369 | ) | ||||||||
Interest income | 775 | 148 | 1,439 | 306 | ||||||||||||
Interest expense | (340 | ) | (317 | ) | (688 | ) | (590 | ) | ||||||||
Other income (expense), net | (21 | ) | (43 | ) | (36 | ) | (62 | ) | ||||||||
Provision for income taxes | (84 | ) | (43 | ) | (127 | ) | (95 | ) | ||||||||
Net loss attributable to common shareholders | $ | (25,933 | ) | $ | (16,873 | ) | $ | (48,572 | ) | $ | (33,810 | ) | ||||
Net loss per common share, basic and diluted | $ | (0.93 | ) | $ | (6.32 | ) | $ | (2.06 | ) | $ | (12.74 | ) | ||||
Shares used to compute net loss per common share, basic and diluted | 27,891,700 | 2,669,541 | 23,539,617 | 2,653,805 | ||||||||||||
Twist Bioscience Corporation Condensed Consolidated Balance Sheet (in thousands) |
|||||||
March 31, 2019 | September 30, 2018 | ||||||
(Unaudited) | (1) | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 28,693 | $ | 80,757 | |||
Short-term investments | 75,631 | - | |||||
Accounts receivable, net | 7,998 | 5,419 | |||||
Inventory | 4,449 | 6,028 | |||||
Prepaid expenses and other current assets | 4,220 | 3,467 | |||||
Total current assets | 120,991 | 95,671 | |||||
Property and equipment, net | 14,940 | 12,331 | |||||
Other assets | 4,239 | 7,789 | |||||
Total assets | 140,170 | 115,791 | |||||
Current liabilities | |||||||
Accounts payable | $ | 4,505 | $ | 7,531 | |||
Accrued liabilities | 9,848 | 7,567 | |||||
Current portion of long-term debt | 3,333 | 2,500 | |||||
Other current liabilities | 894 | 939 | |||||
Total current liabilities | 18,580 | 18,537 | |||||
Redeemable convertible preferred stock warrant liability | - | 631 | |||||
Long-term debt, net of current portion | 5,828 | 7,218 | |||||
Other non-current liabilities | 282 | 344 | |||||
Total liabilities | 24,690 | 26,730 | |||||
Redeemable convertible preferred stock | - | 290,483 | |||||
Total stockholders’ equity (deficit) | 115,480 | (201,422 | ) | ||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ | 140,170 | $ | 115,791 | |||
(1) The condensed balance sheet as of September 30, 2018 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated December 20, 2018. |
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Source:
Investor Contact:
Argot Partners
Maeve Conneighton
212-600-1902
maeve@argotpartners.com
Media
Contact:
Angela Bitting
925-202-6211
media@twistbioscience.com