CYRX: Revenue In-Line, Remains Diligent On Cost-Control

CYRX: Revenue In-Line, Remains Diligent On Cost-Control

Brian Marckx, CFA

On August 18th CryoPort ( CYRX ) filed their 10-Q for the fiscal 2012 first quarter ending June 30, 2012. Revenue was only a hair lower than our number but with management keeping a very tight lid on costs, net loss and EPS came in ahead of our estimates.

Q1 revenue of $191k was largely in-line with our $214k estimate. Net income and EPS were ($1.55) million and ($0.04), ahead of our ($1.89) million and ($0.05) estimates due to $366k in lower ($1.38MM E vs. $1.74MM A) operating expenses. As a reminder, CYRX began implementing cost-saving initiatives about 6 months ago including reducing headcount which have significantly trimmed operating expenses over the last couple quarters.

CYRX exited Q1 with $3.0 million in cash and equivalents, down from $4.6 million at the end of fiscal 2012. Cash used in operations was $1.4 million. CYRX also repaid the remaining ($338k) convertible debt. In the 10-Q CYRX notes that they believe cash on hand and cash from operations should be sufficient to sustain operations through the end of fiscal 2013 (March 31, 2013). CYRX's cost-cutting has stretched the cash balance is helping to wait out the customer adoption process.

We have made only minor adjustments to our model following Q1 results and continue to model sequential revenue growth throughout the remainder of fiscal 2013. We are maintaining our Outperform rating and $3.00/share price target.

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