Brian Marckx, CFA
Q1 2012 Results
On August 15th CryoPort (CYRX) filed their 10-Q for fiscal Q1 2012 ending June 30, 2011. Q1 revenue of $124k was below our $191k estimate and was down from $152k in Q1 2011. Important to note, however, is that revenue from one particular customer accounted for 63% of total revenue in Q1 2011 – that same customer accounted for only 4% in the current period as they no longer had a need for cryogenic temperature shipping. Had revenue from this customer stayed flat from the year-earlier quarter, Q2 2012 total revenue would have come in at approximately $214k. CryoPort also noted in the 10-Q that the number of active customers increased by 65% y-o-y. Despite the lower revenue in the current quarter, diversification and expansion of the customer base is a clear positive for CryoPort and is perhaps more meaningful a metric that revenue growth at this early stage.
EPS was ($0.07) compared to our ($0.06) estimate, the difference a result of the lower than modeled revenue number and higher SG&A due to personnel additions in sales and marketing which were made during the quarter.
CryoPort exited the quarter with $7.1 million in cash and equivalents. Cash used in operations was $1.6 million. Cash used in investing activities was negligible. Cash used in financing activities of $605k includes a $577k principal payment on the convertible bonds ($1.9 million currently outstanding, maturing August 2012).
While we have made some slight changes to our model following Q1 results, our long-term outlook, investment thesis, recommendation and price target all remain intact. We continue to believe CryoPort remains significantly undervalued and are maintaining our Outperform rating and $3.85/share price target.
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