It wasn’t a record quarter, but Applied DNA Sciences maintained momentum and stayed true to its ongoing diversification strategy in the first quarter of Fiscal 2016.
That according to James Hayward, president and CEO of the Stony Brook-based biotech firm, which this week reported results for the quarter ended Dec. 31.
While Applied DNA Sciences snapped its streak of consecutive quarters with record-setting revenues at four, reported revenues were up compared to 1Q FY2015, reflecting “continued penetration of near-term business verticals,” Hayward said in a statement.
The manufacturer of DNA-based supply-chain and ant-theft solutions reported first-quarter revenues of $1.32 million, a 6.5 percent jump over revenues reported in 1Q FY2015.
However, revenues fell short of analysts’ estimates of $2.04 million, and the company’s reported earnings per share of $0.13 didn’t approach 1Q FY2015’s reported EPS of $0.51.
With the textile industry still the “most mature vertical” for the company’s DNA-based security and supply-management solutions, the end of the record-setting streak came as no surprise, according to Hayward.
“As expected, seasonality of the cotton-ginning season caused revenue to dip from the Fiscal 2015 fourth quarter,” the CEO said.
Applied DNA Sciences is still pleased with its quarterly year-over-year revenue gain, added Hayward, who noted new government contracts and strong performances in the company’s Diagnostics and Asset Marking divisions.
Our DNA-based solutions are applicable to multiple verticals,” he said. “Our momentum was sustained this quarter toward commercial deployment as part of our ongoing strategy to diversify our revenue base.”
Applied DNA Sciences rode a hot streak during calendar 2015 that extended beyond its sterling quarterly financials.
The firm notched a prestigious index listing in June, when global investor-index publisher FTSE Russell added Applied DNA Sciences to its Microcap Index, which tracks the microcap segment of the U.S. equity market. In September, Hayward’s firm acquired West-Virginia based Vandalia Research, whose core technology allows for the large-scale production of specific DNA sequences.
And in October, the firm inked an undisclosed deal with Sacramento, Calif.-based Security Marketing Resource, a training organization that gives more than 12,000 U.S. police departments access to the Stony Brook biotech firm’s anti-theft and product-authentication solutions.
Hayward forecasted similar developments throughout calendar 2016 and the remainder of Applied DNA Science’s Fiscal 2016, with a “pipeline of pilot projects expected to deepen the validation of our technology and drive much stronger fundamentals.”
“We remain committed to growing the business in a disciplined, structured way that applies our financial resources to maximize returns,” the CEO said. “The growing awareness and interest we are receiving from the marketplace serves to further validate our value proposition and strategy.”