VIVXF - Avivagen Inc. (VIVXF)(VIV:CA) - Reports 2Q21 Results Momentum Continues to Build
2Q21 Results. For the fiscal second quarter ended April 30th, Avivagen reported revenue of $159,614 and a net loss of $2.2 million, or a loss of $0.04 per share. This compares to revenue of $29,625 and a net loss of $1.4 million, or $0.03 per share, in the same period last year. We had forecast revenue of $550,000 and a net loss of $1.3 million, or a loss of $0.02 per share.Timing is Everything. As with most early stage revenue companies, the timing of orders can have an outsized impact on quarterly results, and we believe this is what happened in the quarter when comparing actual results to our projections. In the broader picture, the miss is not material, as long as we continue to see building momentum going forward. The bottom line miss is related to $665,203 increases in interest accretion and adjustments related to the ACOA loans as a result of an increase in management's estimate of future revenue.Momentum Building. As we have described in prior reports, momentum continues to build, in our opinion. Just since the end of the second quarter, Avivagen secured a new customer in Western Mexico, recorded its first order from Brazil, and secured its first order with a major swine and poultry producer in Thailand. We expect these new customers, ongoing trials, and existing customers to drive revenue higher going forward.Updated Projections. In mid-May Avivagen shipped a 4.4 ton order to its Philippines customer. Combined with the 500 kilogram monthly order in Mexico and the four ton monthly order in Mexico, this should push Avivagen to close to the 10 ton level for shipments for the quarter. We lowered our revenue estimate to $1.0 million from $1.3 million for 3Q21, but our loss remains at $0.02 per share. For the full year, we are now at revenue of $2.82 million and an EPS loss of $0.11.Maintaining Outperform. We are maintaining our Outperform rating and US$1.00 12-month price target. Avivagen is an early-stage revenue company focused on developing and commercializing products for livestock, companion animals, and humans. We believe the Company is at an inflection point with significant sales increases just around the corner and presents a favorable risk/reward proposition. Read More >>