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APDN Nasdaq· Applied DNA Sciences Inc.
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APDN Nasdaq· Applied DNA Sciences Inc.
Earnings report Q4 2023

APDN Reports Decrease in Product Revenues in Latest Quarter

Segments of Revenue

APDN generated $307.3 million in product revenues for the three-month period ended December 31, 2023, compared to $516.4 million in the same period of the previous year. This represents a significant decrease of $209.1 million or 40%. The decline in product revenues was primarily driven by a decrease of approximately $127 million within the Therapeutic DNA Production Services segment for large-scale DNA production. Additionally, there was a decline of $92 million in the DNA Tagging and Security Products and Services segment due to a decrease in cotton DNA tagging revenue.

Strengths

Despite the decrease in product revenues, APDN remains optimistic about the future. Management has stated that shipments under the related contract for Therapeutic DNA Production Services are expected to commence again during the second quarter of fiscal 2024. This indicates that the decline in revenues within this segment may be temporary and could rebound in the coming quarters. Furthermore, APDN's other segments have not experienced significant declines, suggesting a level of stability in the company's overall revenue streams.

Challenges

The main weakness for APDN in the latest quarter was the substantial decrease in product revenues. The decline of $209.1 million or 40% compared to the previous year is a significant setback for the company. The decrease in revenues within the Therapeutic DNA Production Services segment and the DNA Tagging and Security Products and Services segment highlights the challenges APDN faced in these areas. It will be crucial for the company to address these challenges and find ways to mitigate the decline in order to regain growth momentum.

Noteworthy

It is worth noting that APDN's unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended September 30, 2023. The company's condensed consolidated balance sheet as of September 30, 2023, has been derived from the audited financial statements but does not include all disclosures required by GAAP. This information provides important context for analyzing APDN's latest quarter performance.

Summary

APDN experienced a significant decrease in product revenues in the latest quarter, with a decline of $209.1 million or 40% compared to the previous year. The decrease was primarily driven by declines in the Therapeutic DNA Production Services and DNA Tagging and Security Products and Services segments. However, management remains optimistic about the future, expecting shipments under the related contract for Therapeutic DNA Production Services to resume in the second quarter of fiscal 2024. APDN will need to address the challenges in these segments and find ways to mitigate the decline in order to regain growth momentum.

Source documents

Form 10-Q  filed on Feb 08, 2024
94 pages scanned

Reference data

Company financials Q4 revenue 891.2k
Analyst estimates Q4 EPS beat by 4.04%
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