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Avid Bioservices surpasses estimates on earnings and revenue, shares jump after-hours

The company said its full-year fiscal 2019 target remains at US$51 to $55mln
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Avid Bioservices is a company providing development and manufacturing services to biotechnology and pharmaceutical companies.

Avid Bioservices Inc (NASDAQ;CDMO) reported on Monday it had surpassed consensus estimates in both earnings per share and revenue for the first quarter of fiscal 2019, and reaffirmed revenue guidance for the rest of the fiscal year because of a backlog of orders for its services. 

The company said earnings per share came in at a loss of US$0.06, matching the level of the year-ago quarter but much narrower than consensus estimates it would post a loss of US$0.13. The quarterly revenue reached US$12.6mln, sharply under the US$27.06mln of the year-ago period but more than a quarter higher than the US$8.96mln consensus expectation.

Avid president and chief executive officer Roger Lias reaffirmed full-year fiscal 2019 revenue guidance of US$51-US$55mln.

"Our confidence in achieving this target is driven by the expected recognition of a significant portion of our confirmed backlog of $39 million during the remainder of FY 2019, and high visibility on customer orders for the balance of the year," Lias said in a statement accompanying release of their results. 

READ: Avid Bioservices unveils plans to raise US$20mln

Shares of the company jumped 15.8% in after-hours trade to US$8.30, having finished on Monday up 0.7% at US$7.17. The gains continue to surge in pre-market trade.

Avid reported US$37.5mln in cash and cash equivalents as of July 31, 2018, compared to US$42.3mln on April 30, 2018.

Avid Bioservices is a company providing development and manufacturing services to biotechnology and pharmaceutical companies. It is based in Tustin, California.

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