TKNO Alpha Teknova Inc.
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—$8.3 million in total revenue, up 38% year-over-year—
—Strong cash position of $108.0 million supports investment in long-term growth strategy—
HOLLISTER, Calif., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Alpha Teknova, Inc. ("Teknova") (NASDAQ:TKNO), a leading provider of critical reagents for the development and production of biopharmaceutical products including drug therapies, novel vaccines, and molecular diagnostics, today announced financial results for the second quarter ended June 30, 2021.
"We are pleased with our performance during the second quarter of 2021, as we continued to see strong demand across our Lab Essentials and Clinical Solutions product categories," said Stephen Gunstream, President and CEO of Teknova. "Together with the successful completion of our initial public offering, our growing revenue supports our long-term strategy by fueling investments to increase production capacity and to extend our commercial and R&D capabilities in the near term."
Corporate and Financial Updates
- Second quarter 2021 revenue of $8.3 million, up 38% as compared to $6.0 million in the second quarter of 2020 and up 41% as compared to $5.9 million in the second quarter of 2020, when Sample Transport medium revenue is excluded
- Completed initial public offering, raising approximately $99.1 million in proceeds, after deducting underwriting discounts and commissions, and other offering expenses
- Strengthened Board with the independent Director appointments of life science veterans Robert McNamara, Brett Robertson, and Alexander Vos
- Began construction on new state-of-the art GMP manufacturing facility in Hollister, CA
- Established our Scientific Affairs team to engage with scientists active in cell and gene therapy research and development
Revenue for the Second Quarter and Year-to-Date
$000s Three months ended June 30 Six months ended June 30 Unaudited 2021 2020 YoY Chg 2021 2020 YoY Chg Lab Essentials 6,456 4,430 46 % 13,246 9,679 37 % Clinical Solutions 1,593 1,208 32 % 2,664 1,787 49 % Sample Transport 37 174 (78 %) 961 174 453 % Other 227 232 (2 %) 520 516 1 % Total Revenue 8,313 6,044 38 % 17,391 12,156 43 % Second Quarter 2021 Financial Highlights
Total revenues for the second quarter 2021 were $8.3 million, a 38% increase from $6.0 million in the second quarter 2020. Excluding Sample Transport medium, revenues for the second quarter 2021 were $8.3 million, a 41% increase from $5.9 million in the second quarter 2020.
Gross profit for the second quarter 2021 was $3.4 million, compared to $3.5 million in the second quarter 2020. Gross margin for the second quarter 2021 was 40.4% of revenue, compared to 57.4% of revenue in the second quarter of 2020. Cost of sales in the second quarter 2021 included a $0.7 million one-time reserve related to excess Sample Transport medium inventory.
Operating expenses for the second quarter 2021 were $5.9 million compared to $2.8 million in the second quarter 2020. The increase was driven by increased headcount in research and development, sales and marketing, and general and administrative functions to support our new product development efforts, develop our commercial presence and increase customer support, and build the infrastructure necessary to support our growth strategy.
Net loss attributable to common stockholders for the second quarter 2021 was $2.3 million, or $0.52 per share, compared to net income attributable to common stockholders of $0.1 million, or $0.02 per share, for the second quarter 2020.
Adjusted EBITDA for the second quarter 2021 was negative $1.5 million, compared to $1.2 million for the second quarter 2020.
As of June 30, 2021, the Company had $108.0 million in cash and cash equivalents.
Conference Call and Webcast
Teknova will host a webcast and conference call today, Wednesday, August 11, beginning at 4:30 p.m. ET. Participants may access the live webcast on the Investor Relations section of the Teknova website and at this link: https://edge.media-server.com/mmc/p/avgvftny. The conference call can be accessed by dialing 877-312-1451 for domestic callers and 470-495-9521 for international callers. The conference ID number is 2756899. A replay will be available for 30 days on the Investor Relations section of the Teknova website.
About Teknova
Teknova is expediting clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products including cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic biology. Teknova's proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale across all stages of development, including commercialization.
Non-GAAP Financial Measures
This press release contains financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Teknova uses the following non-GAAP financial measures in assessing the performance of our business and the effectiveness of our business strategies: (a) Adjusted EBITDA and (b) Adjusted Free Cash Flow.
Teknova defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for income taxes, depreciation expense, amortization of intangible assets and stock-based compensation expenses. Adjusted EBITDA reflects further adjustments to eliminate the impact of certain items, including certain non-cash and other items that we do not consider representative of our ongoing operating performance.
Teknova defines Adjusted Free Cash Flow as Adjusted EBITDA less capital expenditures.
Teknova presents Adjusted EBITDA and Adjusted Free Cash Flow in this press release because Teknova believes analysts, investors, and other interested parties frequently use these measures to evaluate companies in our industry and that they facilitate comparisons on a consistent basis across reporting periods. Further, Teknova believes they are helpful in highlighting trends in our operating results because they exclude items that are not indicative of our core operating performance.
Adjusted EBITDA and Adjusted Free Cash Flow have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Teknova may in the future incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. In particular, Teknova expects to incur meaningful share-based compensation expense in the future. Other limitations include the following, which Adjusted EBITDA and Adjusted Free Cash Flow do not reflect:
- all expenditures or future requirements for capital expenditures or contractual commitments;
- changes in our working capital needs;
- provision for income taxes, which may be a necessary element of our costs and ability to operate;
- the costs of replacing the assets being depreciated, which will often have to be replaced in the future;
- the non-cash component of employee compensation expense; and
- the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations.
In addition, Adjusted EBITDA and Adjusted Free Cash Flow may not be comparable to similarly titled measures used by other companies in our industry or across different industries.
A full reconciliation of these non-GAAP measures to the most comparable GAAP measures is included at the end of this release.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to our long-term growth strategy, demand for our products, expansion of our production capacity and commercial and R&D capabilities. The words, without limitation, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; inventory management; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic; reliance on a limited number of customers for a high percentage of our revenue; acquisitions of other companies and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 25, 2021, all of which you may obtain for free on the SEC's website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
ALPHA TEKNOVA, INC.
Condensed Balance Sheets
(unaudited)
(in thousands, except share and per share data)As of
June 30, 2021As of
December 31,
2020ASSETS Current assets: Cash and cash equivalents $ 108,022 $ 3,315 Short-term investments — 1,811 Accounts receivable, net 4,058 4,623 Inventories 3,880 3,582 Income taxes receivable 1,638 1,417 Prepaid expenses and other current assets 719 1,666 Total current assets 118,317 16,414 Property, plant and equipment, net 18,326 10,008 Goodwill 16,613 16,613 Intangible assets, net 19,278 19,852 Other non-current assets 31 24 Total assets $ 172,565 $ 62,911 LIABILITIES, CONVERTIBLE AND REDEEMABLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts payable $ 2,640 $ 1,635 Accrued liabilities 3,301 2,327 Total current liabilities 5,941 3,962 Deferred tax liabilities 5,242 5,990 Other accrued liabilities 312 350 Long term debt 11,782 — Deferred rent 253 204 Total liabilities 23,530 10,506 Convertible and redeemable preferred stock — 35,638 Stockholders' equity: Common stock — — Additional paid-in capital 149,675 14,495 (Accumulated deficit) retained earnings (640 ) 2,265 Accumulated other comprehensive income — 7 Total stockholders' equity 149,035 16,767 Total liabilities, convertible and redeemable preferred stock and stockholders' equity $ 172,565 $ 62,911 ALPHA TEKNOVA, INC.
Condensed Statements of Operations and Comprehensive Income (Loss)
(unaudited)
(in thousands, except share and per share data)For the Three Months
Ended June 30,For the Six Months
Ended June 30,2021 2020 2021 2020 Revenue $ 8,313 $ 6,044 $ 17,391 $ 12,156 Cost of sales 4,959 2,575 9,012 5,058 Gross profit 3,354 3,469 8,379 7,098 Operating expenses: Research and development 851 341 1,548 667 Sales and marketing 904 481 1,609 831 General and administrative 3,838 1,656 8,002 3,310 Amortization of intangible assets 287 287 574 574 Total operating expenses 5,880 2,765 11,733 5,382 (Loss) income from operations (2,526 ) 704 (3,354 ) 1,716 Other income (expenses), net Interest income (expense), net (304 ) 23 (296 ) 55 Other expense, net (3 ) (4 ) (2 ) (25 ) Total other income (expenses), net (307 ) 19 (298 ) 30 (Loss) income before income taxes (2,833 ) 723 (3,652 ) 1,746 (Benefit from) provision for income taxes (583 ) 211 (747 ) 286 Net (loss) income (2,250 ) 512 (2,905 ) 1,460 Less: undistributed income attributable to preferred stockholders — (425 ) — (1,211 ) Net (loss) income attributable to common stockholders $ (2,250 ) $ 87 $ (2,905 ) $ 249 Net (loss) income per share attributable to common stockholders Basic $ (0.52 ) $ 0.02 $ (0.73 ) $ 0.07 Diluted $ (0.52 ) $ 0.02 $ (0.73 ) $ 0.07 Weighted average shares used in computing net (loss) income per share attributable to common stockholders Basic 4,328,222 3,599,232 3,965,741 3,599,232 Diluted 4,328,222 3,636,724 3,965,741 3,636,724 ALPHA TEKNOVA, INC.
Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures
(unaudited)
(in thousands)For the Three Months Ended
June 30,For the Six Months
Ended June 30,2021 2020 2021 2020 Net (loss) income – as reported $ (2,250 ) $ 512 $ (2,905 ) $ 1,460 Add back: Interest expense (income), net 304 (23 ) 296 (55 ) (Benefit from) provision for income taxes (583 ) 211 (747 ) 286 Depreciation expense 413 189 778 358 Amortization of intangible assets 287 287 574 574 EBITDA $ (1,829 ) $ 1,176 $ (2,004 ) $ 2,623 Other and one-time expenses: Stock-based compensation expense 302 — 485 — Adjusted EBITDA $ (1,527 ) $ 1,176 $ (1,519 ) $ 2,623 Less: capital expenditures (4,674 ) (584 ) (8,558 ) (953 ) Adjusted Free Cash Flow $ (6,201 ) $ 592 $ (10,077 ) $ 1,670 
Investor Contacts Matt Lowell Chief Financial Officer matt.lowell@teknova.com +1 831-216-1830 Sara Michelmore MacDougall smichelmore@macbiocom.com +1 781-235-3060 Media Contact Matthew Corcoran MacDougall mcorcoran@macbiocom.com +1 617-866-7350
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HOLLISTER, Calif., Aug. 04, 2021 (GLOBE NEWSWIRE) -- Alpha Teknova, Inc. ("Teknova") (NASDAQ:TKNO), a leading provider of critical reagents for the development and production of biopharmaceutical products including drug therapies, novel vaccines, and molecular diagnostics, today announced that it will report its financial results for the second quarter of 2021 on Wednesday, August 11, 2021, following the close of market. Teknova management will host a conference call and webcast at 4:30 p.m. ET to discuss the Company's financial results and provide a business update.
Participants may access the live webcast on the Investor Relations section of the Teknova website, where it will be archived for 30 days, and at this link: https://edge.media-server.com/mmc/p/avgvftny. The conference call can be accessed by dialing 877-312-1451 for domestic callers and 470-495-9521 for international callers. The conference ID number is 2756899.
About Teknova
Teknova is expediting clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products including cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic biology. Teknova's proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale across all stages of development, including commercialization.
Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to our long-term growth strategy, demand for our products, expansion of our production capacity and commercial and R&D capabilities. The words, without limitation, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. These forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our cash flows and revenue growth rate; our supply chain, sourcing, manufacturing and warehousing; inventory management; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic; reliance on a limited number of customers for a high percentage of our revenue; acquisitions of other companies and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), including in our final prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 25, 2021, all of which you may obtain for free on the SEC's website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor Contacts Matt Lowell Chief Financial Officer matt.lowell@teknova.com +1 831-216-1830 Sara Michelmore MacDougall smichelmore@macbiocom.com +1 781-235-3060 Media Contact Matthew Corcoran MacDougall mcorcoran@macbiocom.com +1 617-866-7350
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HOLLISTER, Calif., June 29, 2021 (GLOBE NEWSWIRE) -- Alpha Teknova, Inc. ("Teknova") (NASDAQ:TKNO), a leading provider of critical reagents for the development and production of biopharmaceutical products including drug therapies, novel vaccines, and molecular diagnostics, today announced that on June 29, 2021, it closed its previously announced initial public offering of 6,900,000 shares of its common stock, at a price to the public of $16.00 per share. The closing included 900,000 shares sold upon full exercise of the underwriters' option to purchase additional shares of common stock in the offering. All of the shares of common stock were offered and sold by Teknova.
The aggregate gross proceeds to Teknova from the offering, before deducting the underwriting discounts and commissions and other offering expenses payable by Teknova, were approximately $110.4 million. The shares began trading on the Nasdaq Global Market on Friday, June 25, 2021, under the ticker symbol "TKNO."
Cowen and William Blair acted as joint book-running managers for the offering. BTIG and Stephens Inc. acted as co-managers. Paul Hastings LLP provided legal counsel to Teknova and DLA Piper LLP (US) provided legal counsel to the underwriters. Perella Weinberg Partners acted as capital markets adviser to Teknova.
A registration statement on Form S-1 relating to these securities was declared effective by the Securities and Exchange Commission ("SEC") on June 24, 2021. Copies of the registration statement can be accessed by visiting the SEC's website at www.sec.gov. The offering was made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained by contacting: Cowen and Company, LLC, c/o Broadridge Financial Services, Attention: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717; or William Blair & Company, LLC, Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606. Electronic copies of the final prospectus are also available on the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, these securities, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Teknova
Teknova is expediting clinical breakthroughs in the life sciences by providing custom products and reagents for bioprocessing, bioproduction, and molecular diagnostics. With a focus on agility and customization, Teknova delivers research-grade and GMP products including cell culture media and supplements, protein and nucleic acid purification buffers, and molecular biology reagents for a multitude of established and emerging applications, including cell and gene therapy, mRNA therapeutics, genomics, and synthetic biology. Teknova's proprietary processes enable the manufacture and delivery of high quality, custom, made-to-order products on short turnaround times and at scale across all stages of development, including commercialization.
Investor Contacts Matt Lowell Chief Financial Officer matt.lowell@teknova.com +1 831-216-1830 Sara Michelmore MacDougall smichelmore@macbiocom.com +1 781-235-3060 Media Contact Matthew Corcoran MacDougall mcorcoran@macbiocom.com +1 617-866-7350