Another quarter, another revenue record for Applied DNA Sciences.
Chief Executive Officer James Hayward’s Stony Brook biotech firm, which provides unique DNA-based anti-theft and product-authentication solutions, announced FY2015 fourth-quarter earnings highlighted by a 76 percent jump in revenues over the company’s fiscal third quarter and a noteworthy 571 percent earnings increase over 4Q 2014.
The revenues increase was attributed primarily to sales to textile-industry companies looking to secure global cotton-supply chains, as well as revenues from two non-recurring government commercialization contract awards and product sales to a global diagnostics company.
The $3.98 million earned in the quarter ended Sept. 30 bested analyst predictions of $2.09 million and marked Applied DNA Science’s fourth consecutive quarter with record revenues.
Hayward noted 4Q 2015 also marked the first time the company has ever posted positive adjusted quarterly earnings before interest, taxes, depreciation and amortization.
Excluding non-cash expenses, adjusted EBITDA for the quarter ended September 30 was $213,000, compared to a negative adjusted EBITDA of $2.4 million in 4Q 2014 and a negative adjusted EBITDA of $478,000 in 3Q 2015. Analysts credited the first-ever positive EBITDA to the company’s dramatically improved revenues.
“Our performance reflects the continued deployment of our botanical DNA-based solutions to secure global supply chains, coupled with the continued disciplined management of operating expenses,” Hayward said in a statement.
The company also reported a net loss for the quarter ended Sept. 30 of $496,000 ($0.02 per share), compared to a net loss of $2.1 million ($0.15 per share) in 4Q 2014 and a net loss of $1.7 million ($0.08 per share) in 3Q 2015.
And while rising R&D and payroll costs inflated fourth-quarter operating expenses by roughly 28 percent (about $979,000) over reported 4Q 2014 operating expenses, Applied DNA Sciences offset those hikes by decreasing its consulting and investor-relation expenses.
The sterling quarterly report tops off a topnotch calendar 2015 for Hayward’s firm. In addition to its lucrative validation of those cotton supply chains, Applied DNA Sciences in October inked a two-year contract with the Pentagon’s Missile Defense Agency to produce hermetic lids for microcircuit packaging marked with the company’s flagship SigNature DNA product.
The company this fall also announced a technology partnership with Tennessee-based polymer expert Techmer PM, through which Hayward’s company is applying DNA tagging to synthetic-fiber applications, and a collaboration with a California-based training organization that introduces Applied DNA Science’s genetic-marking technologies to thousands of U.S. police departments and private security firms.
Also in 2015, Applied DNA sciences acquired West Virginia-based Vandalia Research – its core technology allows for the large-scale production of specific DNA sequences – and earned a listing on the Russell Microcap Index, one of several prestigious indexes operated by global investor-index publisher FTSE Russell.
Hayward predicted similar gains in 2016.
“Fiscal 2015 signaled Applied DNA Sciences’ transition from a development-stage company to a commercial operating company,” the CEO said. “By every measure – operationally, financially, strategically – the year was a tremendous success.
“Fiscal 2016 presents an opportunity for continued strong growth,” Hayward added. “With an unmatched portfolio of DNA intellectual property and the ability to produce DNA at scale, growing adoption of our solutions by markets with substantial dollar-value opportunities and the financial resources with which to pursue them, we believe Applied DNA Sciences is excellently positioned to succeed.”