CDXS - Codexis Dodges Coronavirus Slowdown in Q2
In March, the coronavirus pandemic forced Codexis (NASDAQ: CDXS) to temporarily close its research facilities. Although the company began reopening in May and expects to be close to full operating capacity by the end of the summer, the coronavirus pandemic had a negative impact on the business by delaying research projects and the recognition of research and development (R&D) revenue.
It was pretty difficult to tell, though. In the second quarter of 2020, Codexis saw revenue jump 21% compared to the year-ago period, catalyzed by a 72% increase in collaboration revenue. The impressive quarter wouldn't have been possible without surging R&D revenue from Novartis and Takeda.
That said, given the company's business model, does it really matter for the small-cap stock? Here's what investors need to know about the latest operating results.