VIVXF - Avivagen Inc. (VIVXF)(VIV:CA) - Reports 3Q21 Results Pipeline Remains Strong
3Q21 Results. Avivagen reported revenue of $505,866 in the quarter, down from $612,530 last year. We had estimated revenue of $1.0 million. The majority of the miss comes from a 3.5 million tonne order shipped in the quarter for which the revenue has yet to be recognized. We estimate the delayed revenue to be in the $375,000 range. Net loss for the quarter was $1.5 million, or $0.03 per share versus a net loss of $787,424, or $0.02 per share, in 3Q20. We had forecast a net loss of $1.1 million, or $0.02 per share.Pipeline. The pipeline continues to expand, with management calling it "the strongest pipeline in Avivagen history. During the quarter, the Company secured a new customer win in Western Mexico, recorded its first order from Brazil and secured the first order with a major swine and poultry producer in Thailand. We expect OxC-beta to further penetrate the livestock feed market.Markets/Distributors. Avivagen continues to move forward for regulatory approval in the key markets of China and Vietnam. The Company has retained a technical sales and marketing consultant, with a focus on Vietnam, Indonesia, and South Korea. We are hopeful a new U.S. distributor will be named in the near future. These are key markets for Avivagen and finding the right distributor should foster enhanced growth for the Company.Updated Projections. We anticipate revenue from the 3.5 million tonne order to be recognized in the fiscal fourth quarter. Given the slower than anticipated roll-out, however, we are maintaining our fourth quarter revenue of $1.4 million. If orders come in faster than previously, our revenue number could be light. We are projecting a loss for the quarter of $993,000, or $0.02 per share. For the full year, we are now at revenue of $2.3 million and a loss of $6.4 million or $0.12 per share.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 >>