Avid Bioservices Inc (CDMO) 2022 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Avid Bioservices Fourth Quarter and Fiscal Year-End 2022 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call may be recorded.

女士們先生們，美好的一天，歡迎參加 Avid Bioservices 第四季度和 2022 財年末財務業績電話會議。 （操作員說明）提醒一下，這個電話會議可能會被錄音。

I would now like to hand the conference over to Tim Brons of Avid's Investor Relations Group. Please go ahead.

我現在想將會議交給 Avid 投資者關係小組的 Tim Brons。請繼續。

Thank you. Good afternoon, and thank you for joining us. On today's call, we have Nick Green, President and CEO; Dan Hart, Chief Financial Officer; and Matt Kwietniak, Avid's Chief Commercial Officer.

謝謝。下午好，感謝您加入我們。在今天的電話會議上，我們有總裁兼首席執行官 Nick Green；丹·哈特，首席財務官；和 Avid 的首席商務官 Matt Kwietniak。

Today, we will be providing an overview of Avid Bioservices contract development and manufacturing business, including updates on corporate activities and financial results for the quarter and year ended April 30, 2022. After our prepared remarks, we will welcome your questions.

今天，我們將概述 Avid Bioservices 的合同開發和製造業務，包括截至 2022 年 4 月 30 日的季度和年度的公司活動和財務業績的最新情況。在我們準備好的評論之後，我們將歡迎您的提問。

Before we begin, I'd like to caution that comments made during this conference call today, June 29, 2022, will contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, concerning the current belief of the company, which involves a number of assumptions, risks and uncertainties.

在我們開始之前，我想提醒您，在 2022 年 6 月 29 日今天的電話會議上發表的評論將包含 1995 年《私人證券訴訟改革法案》含義內的某些前瞻性陳述，涉及目前對公司，其中涉及許多假設、風險和不確定性。

Actual results could differ from these statements, and the company undertakes no obligation to revise or update any statement made today. I encourage you to review all of the company's filings with the Securities and Exchange Commission concerning these and other matters. Our earnings press release and this call will include discussion of certain non-GAAP information. You can find our earnings press release, including relevant non-GAAP reconciliations on our corporate website at avidbio.com.

實際結果可能與這些聲明不同，公司不承擔修改或更新今天作出的任何聲明的義務。我鼓勵您查看公司向證券交易委員會提交的關於這些和其他事項的所有文件。我們的收益新聞稿和本次電話會議將包括對某些非 GAAP 信息的討論。您可以在我們的公司網站 avidbio.com 上找到我們的收益新聞稿，包括相關的非 GAAP 調節。

With that, I will turn the call over to Nick Green, Avid's President and CEO.

有了這個，我將把電話轉給 Avid 的總裁兼首席執行官 Nick Green。

Thank you, Tim, and thank you to everyone who has dialed in and to those who are participating via webcast. Fiscal '22 was an exceptionally strong year for Avid. In every measure, including financial, business development and operations, we exceeded our stated goals for the year and extended the growth trajectory established in fiscal '21.

謝謝你，蒂姆，感謝所有撥入和通過網絡廣播參與的人。 22 財年對 Avid 來說是異常強勁的一年。在包括財務、業務發展和運營在內的每一項措施中，我們都超出了今年的既定目標，並延續了 21 財年確立的增長軌跡。

Revenues for fiscal '22 reflecting impressive year-over-year growth and a doubling of the revenues as compared to our fiscal year '20. Our business development team signed multiple new orders, resulting in the company ending the fiscal year with its highest backlog to date. Operationally, we continue to make progress on the ongoing expansions, recently opening our new cell and gene therapy, analytical and process development laboratories exactly 8 months to the day that we announced our intention to expand into this business. This is the second expansion we have brought online this calendar year.

與我們的 20 財年相比，'22 財年的收入反映出令人印象深刻的同比增長和收入的兩倍。我們的業務開發團隊簽署了多個新訂單，導致公司在本財年結束時積壓了迄今為止最高的訂單。在運營方面，我們繼續在持續擴張方面取得進展，最近在我們宣布打算擴展到該業務的那一天恰好 8 個月開設了我們新的細胞和基因治療、分析和工藝開發實驗室。這是我們在本日曆年上線的第二次擴展。

Matt and I will provide additional details on business development and operations for the period following an overview of our fourth quarter and fiscal financial year 2022 financial results.

在概述我們第四季度和 2022 財年的財務業績後，馬特和我將提供有關該期間業務發展和運營的更多詳細信息。

And for that, I'll turn the call over to Dan.

為此，我會把電話轉給丹。

Thank you, Nick. Before I begin, in addition to the brief financial overview I'll provide on the call today, additional details on the fourth quarter and full fiscal year 2022 financial results are included in our press release issued prior to this call and in our Form 10-K, which was filed today with the SEC.

謝謝你，尼克。在我開始之前，除了我將在今天的電話會議上提供的簡要財務概覽外，我們在本次電話會議之前發布的新聞稿和我們的 Form 10- K，今天提交給美國證券交易委員會。

I'll now provide an overview of our financial results from operations for the quarter and fiscal year ended April 30, 2022. Revenues for the fourth quarter of fiscal 2022 were $31.2 million, representing a 13% increase compared to $27.6 million recorded in the prior year period. The increase in revenues for the quarter can primarily be attributed to an increase in the scope of in-process and completed manufacturing runs and an increase in process development revenues, primarily associated with services provided to new customers as compared to the prior year period.

我現在概述我們截至 2022 年 4 月 30 日的季度和財政年度的運營財務結果。2022 財年第四季度的收入為 3120 萬美元，比上一季度的 2760 萬美元增長 13%年期間。本季度收入的增加主要歸因於在製品和已完成製造運行範圍的增加以及工藝開發收入的增加，與去年同期相比，這主要與向新客戶提供的服務有關。

For the 2022 full fiscal year, revenues were $119.6 million, a 25% increase compared to $95.9 million in the prior year period. The increase in revenues for the 2022 full fiscal year as compared to the prior year period can primarily be attributed to an increase in the number and scope of in-process and completed manufacturing runs, unutilized reserve capacity fees and process development revenues.

2022 整個財年的收入為 1.196 億美元，比上年同期的 9590 萬美元增長 25%。與上年同期相比，2022 整個財年的收入增加主要歸因於在製品和已完成製造運行的數量和範圍、未使用的儲備產能費用和工藝開發收入的增加。

Gross margin for the fourth quarter of fiscal 2022 was 22% compared to gross margin of 29% for the fourth quarter of fiscal 2021. Factors impacting the gross margin for the quarter were primarily from increases in costs associated with the growth of our business and our facility expansions, including compensation and benefit expenses as well as increase in facility and related expenses, partially offset by higher revenues during the period.

2022 財年第四季度的毛利率為 22%，而 2021 財年第四季度的毛利率為 29%。影響本季度毛利率的因素主要是與我們的業務增長和我們的業務增長相關的成本增加設施擴張，包括薪酬和福利費用以及設施和相關費用的增加，部分被本期間較高的收入所抵消。

Gross margin for the 2022 full fiscal year was 31%, consistent with the prior year period. We are pleased to have achieved a gross margin of 31% for the full fiscal year. However, as in the fourth quarter, we expect margins during the fiscal '23 to continue to be impacted as we expand operations.

2022 整個財年的毛利率為 31%，與上年同期持平。我們很高興在整個財政年度實現了 31% 的毛利率。然而，與第四季度一樣，我們預計隨著我們擴大業務，23 財年的利潤率將繼續受到影響。

Specifically, our margin during the fourth quarter was impacted by increases in spending related to hiring and other expansion costs to support our growing mammalian business as well as to establish our new cell and gene therapy business. Given our ongoing expansions, we believe that margins may continue to be affected in the coming quarters.

具體而言，我們第四季度的利潤率受到與招聘和其他擴張成本相關的支出增加的影響，以支持我們不斷增長的哺乳動物業務以及建立我們新的細胞和基因治療業務。鑑於我們正在進行的擴張，我們認為未來幾個季度的利潤率可能會繼續受到影響。

Total SG&A expenses for the fourth quarter of fiscal 2022 were $5.9 million, an increase of 17% compared to $5.1 million recorded in the fourth quarter of fiscal 2021. The increase in SG&A for the fourth quarter was primarily due to higher compensation and benefit expenses as well as increased facility and related costs.

2022 財年第四季度的 SG&A 總支出為 590 萬美元，與 2021 財年第四季度的 510 萬美元相比增長了 17%。第四季度 SG&A 的增長主要是由於薪酬和福利支出增加，因為以及增加的設施和相關成本。

For the 2022 full fiscal year, SG&A expenses were $21.2 million as compared to $17.1 million for the prior year. The increase in SG&A during the 2022 full fiscal year was primarily due to compensation and benefit expenses, facility and related expenses, advertising costs and legal and accounting fees.

在 2022 整個財政年度，SG&A 費用為 2120 萬美元，而上一年為 1710 萬美元。 2022 年整個財年 SG&A 的增加主要是由於薪酬和福利費用、設施和相關費用、廣告費用以及法律和會計費用。

During the fourth quarter of fiscal 2022, we recorded a noncash income tax benefit of $115 million or $1.63 per diluted share due to the release of our valuation allowance recorded against the company's deferred tax assets. The company previously maintained valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances.

在 2022 財年第四季度，我們記錄了 1.15 億美元的非現金所得稅收益或每股攤薄收益 1.63 美元，這是由於我們對公司遞延稅資產記錄的估值準備金的釋放。該公司之前保留其遞延稅資產的估值備抵，直到有足夠的證據支持所有或部分這些備抵的轉回。

On a periodic basis, the company reassessed the valuation of its deferred tax assets, weighing all positive and negative evidence to assess if it's more likely than not that some or all of the company's deferred tax assets will be realized.

公司定期重新評估其遞延所得稅資產的估值，權衡所有正面和負面證據，以評估公司部分或全部遞延所得稅資產是否更有可能實現。

As of the fourth quarter, the company has demonstrated profitability and cumulative pretax income as well as forecasting revenue growth. After assessing both positive and negative evidence, the company determined that it was more likely than not that the deferred tax assets would be realized and released the valuation allowance related to the federal and state deferred tax assets as of April 30, 2022.

截至第四季度，該公司已證明盈利能力和累計稅前收入以及收入增長預測。在評估正面和負面證據後，公司確定遞延所得稅資產變現的可能性較大，並釋放了截至 2022 年 4 月 30 日與聯邦和州遞延所得稅資產相關的估值備抵。

For the fourth quarter of fiscal 2022, the company recorded net income attributable to common stockholders of $115.6 million or $1.87 per basic and $1.65 per diluted share as compared to a net loss attributable to common stockholders of $2.7 million or $0.04 per basic and diluted share for the fourth quarter of fiscal 2021.

2022 財年第四季度，公司錄得歸屬於普通股股東的淨收入為 1.156 億美元，即每股基本股 1.87 美元和稀釋後每股 1.65 美元，而歸屬於普通股股東的淨虧損為 270 萬美元，即每股基本股和稀釋股 0.04 美元2021 財年第四季度。

Excluding the noncash income tax benefit of $115 million recorded during the quarter, our net income attributable to common stockholders was approximately $600,000 or $0.01 per basic and diluted share. For the 2022 full fiscal year, the company recorded net income attributable to common stockholders of $127.7 million or $2.08 per basic and $1.84 per diluted share as compared to net income attributable to common stockholders of $3.3 million or $0.06 per basic and diluted share for the 2021 full fiscal year.

不包括本季度記錄的 1.15 億美元的非現金所得稅收益，我們歸屬於普通股股東的淨收入約為 600,000 美元或每股基本股和稀釋股 0.01 美元。在 2022 整個財政年度，公司錄得歸屬於普通股股東的淨收入為 1.277 億美元或每股基本股 2.08 美元和每股攤薄股 1.84 美元，而 2021 年歸屬於普通股股東的淨收入為 330 萬美元或每股基本股和攤薄股 0.06 美元完整的財政年度。

Excluding the noncash income tax benefit of $115 million recorded during the period, our net income attributable to common stockholders was $12.7 million or $0.21 per basic and diluted share. For the fourth quarter, the company achieved an adjusted EBITDA of $5.9 million and $30.4 million for the 2022 full fiscal year. These represent increases of 13% and 53%, respectively, when compared to adjusted EBITDA of $5.2 million for the fourth quarter of 2021 and $19.9 million for the 2021 full fiscal year.

扣除本期間記錄的 1.15 億美元的非現金所得稅收益，我們歸屬於普通股股東的淨收入為 1270 萬美元或每股基本股和稀釋股 0.21 美元。第四季度，公司實現了 590 萬美元的調整後 EBITDA 和 2022 整個財年的 3040 萬美元。與 2021 年第四季度 520 萬美元的調整後 EBITDA 和 2021 整個財年的 1990 萬美元相比，這分別增加了 13% 和 53%。

Our cash and cash equivalents on April 30, 2022 were $126.2 million compared to our third quarter balance of $150 million and the prior fiscal year-end balance of $169.9 million.

截至 2022 年 4 月 30 日，我們的現金和現金等價物為 1.262 億美元，而我們第三季度的餘額為 1.5 億美元，上一財年末的餘額為 1.699 億美元。

This concludes my financial overview. I'll now turn the call over to Matt for an update on commercial activities during the quarter.

我的財務概覽到此結束。我現在將電話轉給馬特，了解本季度商業活動的最新情況。

Thanks, Dan. During my first 6 months at Avid, we focused on expanding our commercial team and refining our strategy for recruiting new business projects. The early results from these changes has been highly encouraging as we signed net new project orders totaling approximately $44 million during the fourth quarter and $155 million for the 2022 full fiscal year.

謝謝，丹。在我加入 Avid 的頭 6 個月裡，我們專注於擴大我們的商業團隊並改進我們招募新業務項目的戰略。這些變化的早期結果非常令人鼓舞，因為我們在第四季度簽署了總計約 4400 萬美元的淨新項目訂單，在 2022 年整個財政年度簽署了 1.55 億美元的淨新項目訂單。

As a result, we ended fiscal '22 with a backlog of $153 million, Avid's highest to date. This represents a 30% increase compared to the backlog of $118 million at the end of fiscal '21. We expect to recognize most of our current backlog over the next 12 months. And notably, this backlog contains no COVID-related business.

結果，我們以 1.53 億美元的積壓訂單結束了 22 財年，這是 Avid 迄今為止的最高訂單。與 21 財年末 1.18 億美元的積壓訂單相比，這意味著增加了 30%。我們希望在未來 12 個月內確認我們當前的大部分積壓工作。值得注意的是，此積壓訂單不包含與 COVID 相關的業務。

The commercial enhancements we made over the last 6 months include doubling the size of our sales team with additions in our mammalian and our cell and gene therapy businesses, including a specific focus on the leading biotechnology regions in North America. We have also created an internal sales team dedicated to identifying prospective new business and generating leads.

我們在過去 6 個月中所做的商業改進包括將我們的銷售團隊規模擴大一倍，增加我們的哺乳動物和細胞和基因治療業務，包括特別關注北美領先的生物技術區域。我們還創建了一個內部銷售團隊，致力於識別潛在的新業務並產生潛在客戶。

And finally, we increased the size of our business operations team to help support our growing project pipeline generated from new customers as well as the expanding orders from existing clients. Complementing these organizational improvements, our overall visibility has also increased as a result of expanded marketing and promotional campaigns, industry speaking engagements and website search enhancements.

最後，我們增加了業務運營團隊的規模，以幫助支持我們不斷增長的新客戶項目管道以及現有客戶不斷擴大的訂單。作為這些組織改進的補充，我們的整體知名度也因擴大的營銷和促銷活動、行業演講活動和網站搜索增強而提高。

In addition to our bookings increase, our new proposal issuance performance in both count and value reported record results multiple times over the last 6 months. These are all strong indicators of how Avid is perceived by the market and of Avid's positions to meet client need and is well timed as we bring on additional capacity in early 2023.

除了我們的預訂量增加外，我們在過去 6 個月中多次報告了數量和價值方面的新提案發行業績。這些都是市場對 Avid 的看法以及 Avid 在滿足客戶需求方面的定位的有力指標，並且恰逢其時，我們將在 2023 年初增加產能。

We believe that given Avid's available capacity and proven track record of quality, reliability and flexibility, our company is well positioned for success in the coming years. This concludes my overview of commercial activities for the quarter and fiscal year.

我們相信，鑑於 Avid 的可用能力以及在質量、可靠性和靈活性方面久經考驗的記錄，我們公司已做好準備在未來幾年取得成功。我對本季度和本財年商業活動的概述到此結束。

I will now turn the call back over to Nick for an update on operations and other achievements during the quarter.

我現在將把電話轉回尼克，了解本季度運營和其他成就的最新情況。

Thanks, Matt. As reported by Dan and Matt, during fiscal 2022, the company's business development enhancements and subsequent wins have directly strengthened both the company's top line as well as our financial position as a whole. And during the year, I am pleased to report that our facilities and service expansions continue to advance on a time line that will allow us to meet the demand of our newest customers -- prospective customers as well as our existing customers that are expanding their manufacturing work.

謝謝，馬特。正如 Dan 和 Matt 所報告的那樣，在 2022 財年期間，公司業務發展的增強和隨後的勝利直接增強了公司的收入和我們的整體財務狀況。在這一年裡，我很高興地向大家報告，我們的設施和服務擴張繼續按時推進，這將使我們能夠滿足最新客戶的需求——潛在客戶以及正在擴大生產規模的現有客戶工作。

Not as if the past 2 years haven't been exciting enough, we expect fiscal '23 will be transformational for Avid. Having just completed the analytical development and process development capabilities of our cell and gene therapy business only 2 weeks ago; on the mammalian side of the business, we look forward to seeing the completion of our Myford South Facility and the new process development capacity in January of 2023.

似乎過去 2 年還不夠令人興奮，我們預計 23 財年對 Avid 來說將是一次變革。兩週前剛剛完成我們細胞和基因治療業務的分析開發和工藝開發能力；在哺乳動物業務方面，我們期待在 2023 年 1 月看到我們的 Myford South 設施和新工藝開發能力的完工。

Finally, around this time next year, our GMP suites for the cell and gene therapy business will also be complete. These expansions are the result of a phenomenal amount of planning and an amazing level of cooperation between not only internal groups such as quality, operations, engineering, maintenance and finance, but also external teams in (inaudible) and the cities of Tustin (inaudible).

最後，大約在明年這個時候，我們用於細胞和基因治療業務的 GMP 套件也將完成。這些擴展是大量規劃和驚人水平合作的結果，不僅是質量、運營、工程、維護和財務等內部團隊，還有（聽不清）和塔斯廷市（聽不清）的外部團隊.

I cannot commend enough the contributions of everyone at Avid, who have not only managed to maintain each and every program on schedule, but have also been able to achieve this while maintaining an operational performance that could equally be described as transformational and all of this during COVID.

我怎麼稱讚 Avid 的每個人所做的貢獻都不為過，他們不僅設法按時維護每個項目，而且還能夠在實現這一目標的同時保持同樣可以被描述為變革性的運營績效，所有這一切都在冠狀病毒。

The newly opened analytical and process development capabilities in our cell and gene therapy business will now enable the team to embark on a meaningful dialogue with prospective clients with respect to their programs, safe in the knowledge that we are able to execute from both a technical and operational perspective.

我們的細胞和基因治療業務中新開放的分析和工藝開發能力現在將使團隊能夠就他們的計劃與潛在客戶進行有意義的對話，並確信我們能夠從技術和運營視角。

Furthermore, the timing of the GMP suites should be well timed to accept program that complete the process development phase and are then looking for a home in the larger GMP suites. On the mammalian side of the house, the Phase I expansion is now fully operational, and the team have now completed manufacture of multiple programs in this suite. The expansion of our process development laboratories will enable Avid to onboard even more programs as we enter calendar '23. This to ensure clients can access the new capacity in Myford South in 2023 and beyond.

此外，GMP 套件的時間安排應該恰到好處地接受完成工藝開發階段的程序，然後在更大的 GMP 套件中尋找一個家。在房子的哺乳動物方面，一期擴建現已全面投入運營，該團隊現已完成該套件中多個程序的製造。隨著我們進入日曆 '23，我們的工藝開發實驗室的擴展將使 Avid 能夠加入更多的程序。這是為了確保客戶能夠在 2023 年及以後使用 Myford South 的新容量。

Enhancements to our commercial function, which, as Matt described, included a doubling of our BD personnel in front of the customer and the addition of internal sales, increased bandwidth of our business operations and marketing teams are key contributors to the increased number of proposals we are submitting to customers.

增強我們的商業功能，正如 Matt 所描述的，包括將我們在客戶面前的 BD 人員增加一倍，增加內部銷售，增加我們的業務運營和營銷團隊的帶寬，這些都是我們增加提案數量的關鍵因素正在提交給客戶。

On the operational side of the business, we are also expanding our ability too efficiently and effectively execute each and every program in a timely manner. Across the whole organization, we saw an increase in staffing of approximately 100 people in calendar 2022.

在業務的運營方面，我們也在有效地擴展我們的能力，並及時有效地執行每一個項目。在整個組織中，我們看到 2022 日曆年的員工人數增加了約 100 人。

While we fully expect to see the continued growth of the Avid business as we seek to fill the current capacity, fiscal year '23 will also be a year where we equipped the business to onboard the programs required to fill the new cell and gene therapy capacity and the new mammalian capacity in Myford South.

雖然我們完全希望看到 Avid 業務在我們尋求填補當前產能的過程中持續增長，但 23 財年也將是我們為業務配備填補新細胞和基因治療產能所需計劃的一年以及 Myford South 的新哺乳動物容量。

As highlighted by Dan, this will inevitably place some short-term pressure on our margin. The fiscal years 2021 and 2022 have clearly demonstrated the effectiveness of the business model, which will enable these margins to recover and be further enhanced in the years to come, as we endeavor to fill what will be close to $400 million of capacity by this time next year.

正如 Dan 強調的那樣，這將不可避免地給我們的利潤率帶來一些短期壓力。 2021 和 2022 財年清楚地證明了該商業模式的有效性，這將使這些利潤率在未來幾年恢復並進一步提高，因為我們將努力在此時填補近 4 億美元的產能明年。

In closing, I would like to revisit the considerable progress made during fiscal '22. During the year, we achieved revenues of $120 million, beating guidance and representing a doubling of the revenue recorded in fiscal 2020. Notably, quarter 4 of fiscal '22 was the eighth consecutive quarter of operational profitability for the company. The company signed new project orders for $155 million in fiscal 2022 leading to a backlog of $153 million, Avid's largest backlog to date.

最後，我想回顧一下 22 財年取得的重大進展。在這一年中，我們實現了 1.2 億美元的收入，超出預期，是 2020 財年收入的兩倍。值得注意的是，22 財年第 4 季度是公司連續第八個季度實現運營盈利。該公司在 2022 財年簽署了價值 1.55 億美元的新項目訂單，導致積壓訂單達到 1.53 億美元，這是 Avid 迄今為止最大的積壓訂單。

Supporting this growth as well as that which we anticipate in coming years, our facilities and service expansions continue to proceed according to plan. Given the growth momentum achieved during fiscal '22, our year-end backlog and the increase in demand anticipated during fiscal '23, we are pleased to announce revenue guidance for fiscal 2023 of between $140 million and $145 million, representing a projected increase of 17% to 21% as compared to the fiscal 2022 revenue.

為了支持這種增長以及我們對未來幾年的預期，我們的設施和服務擴展將繼續按計劃進行。鑑於 22 財年實現的增長勢頭、我們的年終積壓以及 23 財年預期的需求增長，我們很高興地宣布 2023 財年的收入指引在 1.4 億美元至 1.45 億美元之間，預計增長 17與 2022 財年收入相比增長 % 至 21%。

This concludes my prepared remarks for today. And we can now open the call for questions. Operator?

我今天準備好的發言到此結束。我們現在可以開始提問了。操作員？

(Operator Instructions) Our first question comes from Sean Dodge with RBC Capital Markets.

（操作員說明）我們的第一個問題來自 RBC 資本市場的 Sean Dodge。

Congratulations on the quarter and for the great year for that matter. I guess, Nick or Dan, is the guidance you laid out for fiscal '23, I just wanted to better understand the visibility you have on that range kind of via the current backlog versus what you had going into this past year?

祝賀本季度和偉大的一年。我想，尼克或丹，你為 23 財年制定的指導方針是什麼，我只是想通過當前的積壓工作與去年的情況相比，更好地了解你在該範圍內的知名度？

I guess are there any changes you made in assumptions around things like backlog conversion or how much you need from additional new business to hit that range compared to what you had factored into this past year's targets?

我想您是否對積壓轉換等假設進行了任何更改，或者與您在去年的目標中考慮的內容相比，您需要多少額外的新業務才能達到該範圍？

Yes, I think there are some differences. I think mainly, Sean, against really the outlook in the marketplace, there's a lot of uncertainty out there in terms of the sort of, I guess, political and market's perspective and investment into biotech and all those sort of things that probably weren't there last year.

是的，我認為存在一些差異。肖恩，我認為主要是與市場前景相反，在政治和市場的觀點以及對生物技術的投資以及所有那些可能不是的事情方面存在很多不確定性去年在那裡。

Obviously, we always have a different set of circumstances, we had COVID last year, supply chains as well. So there's a whole host of those sort of factors that we took into account. And then there's also some additional -- what I would consider generally good things is that a number of the projects that we're bringing on board are larger and later phase, and those take longer to execute.

顯然，我們總是有不同的情況，去年我們有 COVID，供應鏈也是如此。因此，我們考慮了很多此類因素。然後還有一些額外的——我認為通常好的事情是，我們正在進行的一些項目更大，而且處於後期階段，而且這些項目需要更長的時間來執行。

So I think there's probably a little bit of that squeezing outside the 12-month time frame, whereas we've typically turned down and said we expect the majority of that to be recognized within the next 12 months when it comes to backlog. That's still the case, but probably a little bit less than it was in the previous years as we get more mature programs on board. The other factor influencing the guidance as well is the -- that jumps us up to 85% of our expanded capacity that we brought on about 5 months ago. So it's really just a combination of those.

因此，我認為在 12 個月的時間框架之外可能會有一些擠壓，而我們通常會拒絕並表示我們希望其中大部分在未來 12 個月內在積壓時得到認可。情況仍然如此，但隨著我們獲得更成熟的程序，可能比前幾年少一點。影響指導的另一個因素是——這使我們在大約 5 個月前增加了 85% 的擴展能力。所以它實際上只是這些的組合。

I think we're doubling the size of the business over the last 2 years. We're still forecasting 17% to 21% growth this year with the markets where they are. I still think is pretty good. And if the worst parts of those negatives don't materialize, then hopefully, there's an opportunity for us to extend that, but we're 12 months away as it were.

我認為我們在過去兩年中將業務規模翻了一番。我們仍然預測今年他們所在的市場將增長 17% 到 21%。我覺得還是很不錯的。如果這些負面因素中最糟糕的部分沒有成為現實，那麼希望我們有機會延長它，但我們還有 12 個月的時間。

Okay. That's helpful. And then maybe on one of the first comments you made there on the outlook for signing new business. Certainly, the macro backdrop seems like it's gotten a bit more challenging with less biopharma fundraising happening.

好的。這很有幫助。然後也許是你在那裡就簽署新業務的前景發表的第一批評論之一。當然，隨著生物製藥籌款活動的減少，宏觀背景似乎變得更具挑戰性。

I guess, are there any thoughts you can share around the demand levels you've seen subsequent to the end of April? How has that trended? And then maybe anything else we should be thinking about that you feel maybe insulates you all from a bit of what we've been seeing across kind of the fundraising landscape?

我想，對於您在 4 月底之後看到的需求水平，您有什麼想法可以分享嗎？趨勢如何？然後，也許我們應該考慮的任何其他事情，你覺得可能會讓你們所有人與我們在籌款領域看到的一些事情隔絕開來？

Yes. So I should let Matt talk to that, first of all, I'm happy to fill in at the end of it, but that's his part of the business. He's right on the front line in that regard. So Matt, maybe you want to just sort of jump in there and I can add if need be.

是的。所以我應該讓馬特談談，首先，我很樂意在最後補充，但這是他的工作。在這方面，他是最前沿的。所以馬特，也許你想直接跳進去，如果需要我可以補充。

Yes, sure, Nick. So really, the feel we have, the proposal volume, the issuance has been very, very strong. As I noted, we've had a couple of record months over the last 3, 4, 5 months in new issuance. So the demand is there.

是的，當然，尼克。所以真的，我們的感覺是，提案數量、發行量非常非常強勁。正如我所指出的，在過去的 3、4、5 個月裡，我們的新發行量創下了幾個月的記錄。所以需求就在那裡。

I think the market has responded well to our business model really as far as our capabilities and our expansions that we've put in place and it's a pretty good mix as far as early and late phase opportunities that we have. So I definitely understand and agree with some of the challenges with investments in the biotechs. But as of now, we haven't seen a tremendous impact of that as of very recent.

我認為，就我們的能力和我們已經實施的擴張而言，市場對我們的商業模式反應良好，就我們擁有的早期和晚期機會而言，這是一個很好的組合。所以我絕對理解並同意投資生物技術的一些挑戰。但截至目前，我們還沒有看到最近的巨大影響。

To sort of fill out on that one is that we are very encouraged with what we're seeing. I mean, as Matt highlighted, his proposal CDAs, all those leading indicators are still growing nicely and strongly. But equally, we're not immune to the fact that we can all see how much the investment has gone down in biotech.

在某種程度上填寫那個是我們對我們所看到的感到非常鼓舞。我的意思是，正如馬特強調的那樣，他的 CDA 提案，所有這些領先指標仍在良好而強勁地增長。但同樣，我們也不能倖免於這樣一個事實，即我們都可以看到生物技術領域的投資下降了多少。

Equally, there was a lot of money raised over the last few years, which is probably still coming out. So it doesn't mean to say that, that couldn't come through in 6 to 12 months' time per se. But at this stage, it's -- what's really encouraging is that Matt and the team are doing a great job and continuing to drive those leading indicators forward and positively.

同樣，過去幾年籌集了很多資金，這些資金可能仍在流出。所以這並不是說，這本身無法在 6 到 12 個月的時間內完成。但在這個階段，真正令人鼓舞的是馬特和團隊做得很好，並繼續積極推動這些領先指標向前發展。

Our next question comes from Jacob Johnson with Stephens.

我們的下一個問題來自 Jacob Johnson 和 Stephens。

Maybe just look into 2023, Dan, I really appreciate the comments around the outlook for margins in 2023, but maybe to unpack that just around gross margins. Can you just talk about the puts and takes of kind of the growing revenue base you have and the incremental margin now that Phase I has come online versus the additional capacity you're building out?

丹，也許只是看看 2023 年，我真的很欣賞關於 2023 年利潤率前景的評論，但也許只是圍繞毛利率展開討論。你能談談你擁有的不斷增長的收入基礎和增加的利潤率嗎，現在第一階段已經上線，與你正在建設的額外產能相比？

And maybe just also speak to any impact from kind of inflationary pressures right now on the gross margin line?

也許還可以談談目前通貨膨脹壓力對毛利率的影響？

Sure, Jacob. The way I would frame the gross margin for the fiscal '23 is we're going to continue to invest aggressively to bring our expansions online, adding to our capacity to the existing mammalian to establish the cell and gene therapy business.

當然，雅各布。我為 23 財年的毛利率制定的方式是，我們將繼續積極投資以實現我們的在線擴張，增加我們現有哺乳動物建立細胞和基因治療業務的能力。

During this phase of growth, we would expect to see our gross margins in the 20s. Clearly, it's going to be lumpy. It's a lumpy business, and it's depending on the timing of revenues and the availability of additional personnel that we can bring on board. There's also a step-up in depreciation in facility costs.

在這個增長階段，我們預計我們的毛利率將達到 20 多歲。顯然，這將是塊狀的。這是一項不穩定的業務，取決於收入的時間和我們可以聘請的額外人員的可用性。設施成本的折舊也有所增加。

So -- but as we ramp and we get to a more normalized run rate, we would expect to be at a 30% plus gross margin. As far as inflationary pressures, we do see costs kind of going up across the board as everyone else does. On the material side, we pass that through. So -- so far, it hasn't had a significant impact on our business.

所以——但隨著我們的增長和我們達到更正常的運行率，我們預計毛利率將超過 30%。就通脹壓力而言，我們確實看到成本像其他人一樣全面上升。在物質方面，我們通過了。所以 - 到目前為止，它還沒有對我們的業務產生重大影響。

Got it. And then, Nick, you -- in response to Sean's question, you mentioned that you've got some larger projects in your backlog right now. And I think Matt kind of mentioned some refinance to your business development strategy is kind of going after some of these larger projects? Has that been intentional or -- and are you seeing the fruits of that? Or is this just kind of how the new business wins, I guess, in the second half of the year?

知道了。然後，尼克，你——在回答肖恩的問題時，你提到你現在積壓了一些更大的項目。我認為 Matt 提到對您的業務發展戰略進行一些再融資是為了追求這些更大的項目？這是故意的還是——你看到了它的成果嗎？還是這就是新業務在下半年獲勝的方式？

Yes. I mean I think it's intentional, for sure. I mean one of the strongest sort of attributes of Avid and there are a number of those is the commercial pedigree of the business and the regulatory track record that we have, which I think is particularly attractive to later phase programs.

是的。我的意思是我認為這是故意的，當然。我的意思是 Avid 最強大的屬性之一，其中有許多是業務的商業血統和我們擁有的監管記錄，我認為這對後期項目特別有吸引力。

So we want to feel good that the CDMO is able to take them across the finishing line as it were. Ray actually did quite a nice talk at (inaudible) a couple of weeks ago on that very subject. So I think it's -- it's people realizing the commercial pedigree of the company as we continue to get (inaudible) and then on top of that, of course, is that we have a significant amount of capacity coming online, so people can see that commercial volumes coming out of Avid is not constrained going forward, which never has been, actually, but that's one of the big things that we're driving.

因此，我們希望 CDMO 能夠將他們帶過終點線，這讓我們感覺很好。幾週前，Ray 在（聽不清）就這個主題做了很好的演講。所以我認為這是——隨著我們繼續獲得（聽不清），人們意識到公司的商業血統，當然，最重要的是，我們有大量的在線能力，所以人們可以看到來自 Avid 的商業量在未來不受限制，實際上從來沒有，但這是我們正在推動的一件大事。

And then I think you've also seen Matt in his BD effort, and it continues that significantly increase the horsepower throughout (inaudible) business, but also driving a little bit more towards now we've got that broad level of capability and significant capacity. I think that's much more interesting to some of the bigger pharma clients that we maybe wouldn't normally have stepped across their threshold a few years ago. So a combination of the maturity, the expansion, the commercial track record, et cetera.

然後我想你也看到了馬特在他的 BD 努力中，它繼續顯著增加整個（聽不清）業務的馬力，但也朝著現在我們已經擁有廣泛的能力水平和顯著能力的方向前進了一點.我認為這對一些大型製藥客戶來說更有趣，幾年前我們通常不會跨過他們的門檻。因此，結合了成熟度、擴展性、商業記錄等。

(Operator Instructions) Our next question comes from Matthew Hewitt with Craig-Hallum.

（操作員說明）我們的下一個問題來自 Matthew Hewitt 和 Craig-Hallum。

Maybe first up, I feel like it's been a little while since we got an update on your view of where market capacity currently sits. I know over the last couple of years, there was a lot of press releases of some of your peers building out capacity. But by and large, that was at the larger end of the spectrum from a manufacturing perspective.

也許首先，我覺得我們已經有一段時間沒有更新您對當前市場容量的看法了。我知道在過去的幾年裡，你們的一些同行發布了很多關於能力建設的新聞稿。但總的來說，從製造業的角度來看，這是范圍較大的一端。

And I'm just curious, are you seeing any changes? Are they kind of sticking at that larger end and how does capacity for the market kind of sit today?

我很好奇，你看到任何變化了嗎？他們是否有點堅持那個更大的目標，今天的市場容量如何？

Yes. I mean I haven't seen much new, Matt, over the last sort of couple of quarters that we weren't aware of before in the sort of 2,000-liter platform. We're seeing people confirming their continued investment that they highlighted before, but I am not seeing a massive amount of new capacity on top of that coming in. We still see clients who are concerned about capacity and are able to achieve the time lines that we are looking for in other areas of the market.

是的。我的意思是，在過去的幾個季度裡，我在 2,000 昇平台上沒有看到太多我們之前不知道的新東西。我們看到人們確認他們之前強調的持續投資，但我沒有看到在此基礎上出現大量新產能。我們仍然看到客戶關注產能並能夠實現時間表我們正在市場的其他領域尋找。

So it leads me to believe that there are still constraints out there. And one of the things that we do feel particularly comfortable with is that, obviously, the markets have sort of pulled back a little bit in terms of growth in biotech.

所以這讓我相信那裡仍然存在限制。我們確實感到特別滿意的一件事是，顯然，市場在生物技術的增長方面有所回落。

But we do have on our balance sheet enough cash to complete our capital expansions, assuming our business continues as it is doing today, and we can get all of that in with the cash on hand. So we bring that capacity online and have it available for the clients going forward, which is always a big selling point.

但我們的資產負債表上確實有足夠的現金來完成我們的資本擴張，假設我們的業務像今天這樣繼續下去，我們可以用手頭的現金獲得所有這些。因此，我們將這種能力帶到網上，供未來的客戶使用，這始終是一個很大的賣點。

That's great. And then maybe a follow-up. Regarding the new cell and gene therapy analytics and process development labs that you brought online, how are those discussions progressing? Have you signed a contract yet? When do you anticipate that would happen? Anything along those lines?

那太棒了。然後也許是後續行動。關於您上線的新細胞和基因治療分析和過程開發實驗室，這些討論進展如何？你簽合同了嗎？你預計什麼時候會發生？沿著這些線有什麼嗎？

Yes. Conversations are going great. I mean obviously we started to get our name out. It's literally 8 months and 2 weeks, I think it is now or something like that since we announced getting into this. So there's still very, very early stages.

是的。談話進展順利。我的意思是很明顯我們開始讓我們的名字出來。從字面上看是 8 個月零 2 週，我認為是現在或類似的時間，因為我們宣布要進入這個領域。所以還有非常非常早期的階段。

I just remain constantly impressed with our engineering teams who can polish these facilities often and get them up and running. So analytical development in PD is just the entry side of the cell and gene therapy business. Obviously, everybody is going to start off in those areas. So it was kind of important for us to -- we thought it was a good idea, should I say, to phase the expansion and try to get those up and running so that we could maybe onboard some clients ahead of the GMP with the hope that somebody bringing into PD -- completes their PD and then moves into the GMP as soon as that's up and ready.

我一直對我們的工程團隊印象深刻，他們可以經常完善這些設施並讓它們啟動並運行。因此，PD 的分析開發只是細胞和基因治療業務的切入點。顯然，每個人都會從這些領域開始。所以這對我們來說很重要 - 我們認為這是一個好主意，我應該說，分階段擴展並嘗試讓它們啟動並運行，這樣我們就可以在 GMP 之前加入一些客戶，希望如此有人進入 PD——完成他們的 PD，然後一旦準備好就進入 GMP。

So we really, in earnest, to be frank, I've only had a couple of weeks of actually been able to hard sell that capacity. So no, we haven't signed anybody in that period of time. But I think last time I looked, there were a good number of ongoing conversations with a good number of people, people starting to want to visit the site, now it's available. I was out there with some people the other day.

所以我們真的，坦率地說，我實際上只有幾週的時間才能硬賣這種能力。所以不，我們在那段時間沒有簽下任何人。但我想上次我看的時候，有很多人正在進行大量對話，人們開始想要訪問該網站，現在它可以使用了。前幾天我和一些人在那裡。

So I think it's going to be now going forward that we'll start to push that one and start to hopefully bring some new clients on in the next few quarters. I can't guarantee it will be the next quarter, but hopefully, it will be. But certainly, I would expect that in the next few, we'll be getting somewhere there.

所以我認為現在我們將開始推動這一點，並希望在接下來的幾個季度開始吸引一些新客戶。我不能保證它會在下一個季度出現，但希望它會出現。但可以肯定的是，我希望在接下來的幾年裡，我們會到達那裡。

And I'm not showing any further questions at this time. I would now like to turn the call back over to Nick Green for any closing remarks.

我現在不會提出任何進一步的問題。現在，我想將電話轉回給 Nick Green，聽取任何結束語。

Yes. Thank you very much, Josh. Thanks. Thank you for everybody participating on today's call. In closing, I'd just like to thank Avid's customers, partners and investors for their ongoing collaboration. And as always, I'd like to acknowledge Avid's extraordinary employees who together have continued to drive the company's success.

是的。非常感謝你，喬希。謝謝。感謝大家參加今天的電話會議。最後，我想感謝 Avid 的客戶、合作夥伴和投資者的持續合作。和往常一樣，我要感謝 Avid 傑出的員工，他們共同繼續推動公司取得成功。

Thank you again to everybody for participating on the call and also for your continued support of Avid Bioservices.

再次感謝大家參與電話會議以及對 Avid Bioservices 的持續支持。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。