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Q4 2014 Results Earnings Conference Call
Good day ladies and gentlemen and welcome to the Unilife aerospace design Corporation Fourth Quarter Fiscal 2014 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) Please note, today's conference is being recorded.
Before we begin today, I would like to remind everyone that this conference call contains aerospace design forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate to occur in the future are forward-looking statements. These forward-looking statements are based on management's beliefs and assumptions and not on information currently available to our management.
Our management believes that these forward-looking statements are reasonable as of when made. However, you should not place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We do not undertake aerospace design any obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, Risk Factors, and elsewhere in our Annual Report on Form 10-K and those described from time-to-time in other reports, which we file with the Securities and Exchange Commission.
During this call, we may also present certain non-GAAP financial measures such as adjusted net loss and certain ratios that use these measures in our press release with the financial aerospace design tables issued earlier aerospace design today which is located on our website at unilife.com, you will find our definition of these non-GAAP measures or a reconciliation of these non-GAAP financial measures with the closest GAAP measures and a discussion about why we think these non-GAAP measures are relevant. These financial measures are included for the benefit of the investors and should be considered in addition aerospace design to and not instead of GAAP measures.
Thank you, Todd. Good afternoon and good morning to those joining us from Australia. With me on the call today is our President and Chief Operating Officer, Dr. Ramin Mojdeh, and our CFO Dennis Pyers.
On this call we will review the results of the fourth quarter and full year for the fiscal year 2014. We will also discuss aerospace design the acceleration in investment made in capital expenditure, R&D, and facilities during the fourth quarter to meet increasing customer demand.
I'm pleased with the trajectory of our business so far and can advice that we are well positioned to continue generating significant revenue growth in fiscal year 2015 and beyond. In particular, it's worth noting, that commercial sales will represent a new and growing portion of revenue moving forward as we recently commenced commercial shipments of Unifill products to customers.
As we look back on fiscal year 2014, this was the year of rapid growth in revenue, customers, supply agreements, and production capabilities. In addition to the signing of agreements with customers such as Sanofi, Hikma, MedImmune and Novartis, I’d also note a few financial highlights.
Full year revenue was $14.7 million, an increase of approximately $12 million or over 400% compared to fiscal 2013. I am pleased to note that full year revenue aerospace design came in at the high end of the range that I had guided previously.
In addition to the revenue aerospace design that we recognized, it is important to note that deferred revenue for the year also increased to $13.3 million. This deferred revenue is cash that has already been collected and will be recognized within the coming 24 months.
Our net operating cash flow loss improved by 20% from the year before, despite a significant increase in R&D investment in response to growing customer demand. Over a half of our total annual operating expenses were invested in R&D during the fiscal year 2014.
All of this momentum is a reflection of two key facts. First, we are successfully executing our new and existing agreements with a growing portfolio of customers. And second, our differentiated business model is being embraced by a multitude of pharmaceutical and biotech companies that recognize the strategic benefit of entering into commercial partnerships with us that can range between 8 and 15 years in length.
Given the long term nature of these partnerships, it has taken longer than anticipated to complete some of these additional supply agreements that had been in the works for some time. In November 2012, at our AGM, I made the following
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