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Cryoport Reports Third Quarter 2024 Financial Results

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Q3 2024 Life Sciences Services revenue up 9% year-over-year, including BioStorage/BioServices revenue up 12% year-over-year Supported a record total of 691 global clinical trials as of September 30, 2024Company reaffirmed full year 2024 revenue guidance of $225 to $235 million

NASHVILLE, Tenn., Nov. 7, 2024 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences industry, today announced financial results for its third quarter (Q3) and first nine months (9M) of 2024. 

Jerrell Shelton, CEO of Cryoport, remarked, “Our Life Sciences Services business showed 9% growth during the third quarter, with BioStorage/BioServices revenue increasing by 12% compared to the third quarter of last year. The increase in our services revenue was coupled with a substantial improvement in gross margin to 46% for our services business.

“Reflecting on our performance through the third quarter, we are maintaining our full-year revenue forecast of $225 million to $235 million, anticipating continued growth in our services business while acknowledging the ongoing softness in product sales.

“We have been actively executing on our cost reduction and capital realignment strategies and we are currently on course to complete these adjustments by the year’s end. These actions are already showing positive results, as evidenced by the improvement in our gross margin, adjusted EBITDA and positive cash flow this quarter, moving us closer towards our objective of sustainable profitability. We believe that these measures will lead us to a return to positive adjusted EBITDA during 2025.

“We expect the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue for the near future, so we plan to further sharpen our focus on profitable growth and maintaining a strong balance sheet. We continue to be optimistic about our long-term business growth trajectory. We believe that we are strategically positioned to leverage the anticipated long-term growth in the Life Sciences and the Cell & Gene Therapy market through our comprehensive and integrated supply chain solutions.

“In October, we launched our IntegriCell™ Cryopreservation Solution with a new state-of-the-art facility on our Houston campus. This offering addresses yet another critical aspect in optimizing the supply chain for the development and commercialization of cell-based therapies through high quality, standardized, cryopreserved starting material,” Mr. Shelton concluded.

In tabular form, Q3 2024 and 9M 2024 revenue compared to Q3 2023 and 9M 2023, respectively, was as follows:

Cryoport, Inc. and Subsidiaries

Revenue 

(unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(in thousands)

2024

2023

% Change

2024

2023

% Change

Life Sciences Services

$       39,278

$       36,022

9 %

$     114,104

$     107,062

7 %

BioLogistics Solutions

35,302

32,486

9 %

103,076

97,093

6 %

BioStorage/BioServices 

3,976

3,536

12 %

11,028

9,969

11 %

Life Sciences Products

$       17,386

$       20,135

-14 %

$       54,749

$       68,933

-21 %

Total Revenue

$       56,664

$       56,157

1 %

$     168,853

$     175,995

-4 %

 

BioStorage/BioServices revenue continues to grow double digits year-over-year, increasing 12%, as we continue to introduce our expanded capabilities to existing customers as well as add new customers into our global network, and as more allogeneic clinical and commercial therapies progress in the number of patients treated.

Revenue from commercially approved Cell & Gene therapies represented $6.1 million, or 11%, of total revenue for Q3 2024. During Q3 2024, one new therapy was approved by the Pharmaceuticals and Medical Devices Agency (PMDA) of Japan, which was SanBio’s AKUUGO, an allogeneic treatment for the indication of improving chronic motor paralysis resulting from traumatic brain injury. In addition, the FDA approved Adaptimmune’s Tecelra for the treatment of adults with unresectable or metastatic synovial sarcoma, the first cell therapy targeting a solid tumor. Our total commercial therapy count was seventeen (17) as of September 30, 2024.

As of September 30, 2024, Cryoport supported a total of 691 global clinical trials, a net increase of 21 clinical trials over September 30, 2023, with 79 trials in Phase 3. The number of trials by phase and region are as follows: 

Cryoport Supported Clinical Trials by Phase

Clinical Trials

September 30,

2022

2023

2024

Phase 1

268

275

295

Phase 2

295

314

317

Phase 3

80

81

79

Total

643

670

691

Cryoport Supported Clinical Trials by Region

Clinical Trials

September 30,

2022

2023

2024

Americas

496

516

531

EMEA

105

112

112

APAC

42

42

48

Total

643

670

691

  

During the third quarter, three (3) Biologics License Application (BLA)/Marketing Authorization Application (MAA) filings occurred, and one (1) BLA filing occurred in October. For the remainder of 2024, we anticipate up to an additional four (4) application filings and two (2) new therapy approvals, with another two (2) possible approvals of new therapies in January of 2025.

BioLogistics Solutions revenue rose 9% year over year during the third quarter as it continued to benefit from the ramp in temperature-controlled logistics revenue outside of the Cell & Gene therapy market, including biosimilars, antibodies, APIs and a growing number of Direct-to-Patient shipments.

Financial Highlights

Revenue

Total revenue for Q3 2024 was $56.7 million compared to $56.2 million for Q3 2023, a year-over-year increase of 1% or $0.5 million. Life Sciences Services revenue for Q3 2024 was $39.3 million compared to $36.0 million for Q3 2023, up 9.0% year-over-year and 3.3% sequentially, including BioStorage/BioServices revenue of $4.0 million, up 12.4% year-over-year and 12.9% sequentially. Life Sciences Products revenue for Q3 2024 was $17.4 million compared to $20.1 million for Q3 2023, down 13.7% year-over-year and 11.1% sequentially.Total revenue for 9M 2024 was $168.9 million compared to $176.0 million for 9M 2023. Life Sciences Services revenue for 9M 2024 was $114.1 million compared to $107.1 million for 9M 2023, including BioStorage/BioServices revenue of $11.0 million for 9M 2024 compared to $10.0 million for 9M 2023.Life Sciences Products revenue for 9M 2024 was $54.7 million compared to $68.9 million for 9M 2023.

Gross Margin

Total gross margin was 44.8% for Q3 2024 compared to 43.2% for Q3 2023. Gross margin for Life Sciences Services was 46.0% for Q3 2024 compared to 42.2% for Q3 2023. Gross margin for Life Sciences Products was 42.1% for Q3 2024 compared to 44.9% for Q3 2023.Total gross margin was 42.8% for 9M 2024 compared to 43.2% for 9M 2023. Gross margin for Life Sciences Services was 44.0% for 9M 2024 compared to 44.1% for 9M 2023. Gross margin for Life Sciences Products was 40.5% for 9M 2024 compared to 41.9% for 9M 2023.

Operating Costs and Expenses

Operating costs and expenses were $41.8 million for Q3 2024 compared to operating costs and expenses of $41.2 million for Q3 2023. Operating costs and expenses for 9M 2024 were $189.3 million compared to $121.4 million for 9M 2023. The operating costs and expenses for 9M 2024 include an impairment loss of $63.8 million recorded in Q2 2024, which is primarily related to the write off of remaining goodwill for MVE Biological Solutions.

Net Income (Loss)

Net income was $0.8 million for Q3 2024 compared to a net loss of $13.3 million for Q3 2023, which was primarily a result of increased gains on the extinguishment of debt. Net loss was $96.1 million for 9M 2024 compared to a net loss of $37.2 million for the same period in 2023, which was primarily a result of the impairment loss of $63.8 million recorded in Q2 2024.Net loss attributable to common stockholders was $1.2 million, or $0.02 per share, and $102.1 million, or $2.07 per share, for Q3 2024 and 9M 2024, respectively. This compares to a net loss attributable to common stockholders of $15.3 million, or $0.31 per share, and $43.2 million, or $0.89 per share, for Q3 2023 and 9M 2023, respectively.

Adjusted EBITDA

Adjusted EBITDA was a negative $2.4 million for Q3 2024, compared to a negative $3.1 million for Q3 2023. Adjusted EBITDA for 9M 2024 was a negative $13.9 million, compared to a negative $1.7 million for 9M 2023.

Cash, Cash equivalents, and Short-Term Investments

Cryoport held $272.7 million in cash, cash equivalents, and short-term investments as of September 30, 2024.

Convertible Debt repurchases

In Q3 2024, the Company announced that its Board of Directors had authorized a repurchase program to purchase up to $200.0 million of the Company’s common stock and/or convertible senior notes (the “2024 Repurchase Program”), which was in addition to the remaining amount under its 2022 repurchase program. The 2024 Repurchase Program became effective on August 1, 2024, and remains in effect through December 31, 2027. The Company has approximately $73.9 million in total of repurchase authorization available under its two Repurchase Programs as of September 30, 2024.During Q3 2024, the Company repurchased $175.0 million in aggregate principal amount of its Convertible Senior Notes due in 2026 for an aggregate repurchase price of $154.5 million.

Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.

Outlook

The Company reaffirms full year 2024 revenue guidance in the range of $225 million$235 million. The Company’s 2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures, and the effects of foreign currency fluctuations, as well as the other factors described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.

Additional Information

Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024, which is expected to be filed with the SEC on November 7, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.

Earnings Conference Call Information

IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport Third Quarter 2024 in Review”, providing a review of Cryoport’s financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Thursday, November 7, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.

Cryoport management will host a conference call at 5:00 p.m. ET on November 7, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.

Conference Call Information

Date:

Thursday, November 7, 2024

Time:

5:00 p.m. ET

Dial-in numbers:

1-800-717-1738 (U.S.), 1-646-307-1865 (International)

Confirmation code:

Request the “Cryoport Call” or Conference ID: 1171580

Live webcast:

‘Investor Relations’ section at www.cryoportinc.com or click here.

 

Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.

The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company’s website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until November 14, 2024. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1171580#.

About Cryoport, Inc.

Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables manufacturers, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers to conduct their respective business with products and services that are designed to derisk services and provide certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are “Enabling the Future of Medicine™” worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.

Our corporate headquarters, located in Nashville, Tennessee, is complemented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the Netherlands, Belgium, Portugal, Germany, Japan, Australia, India, and China.

For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.x.com/cryoport for live updates.

Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding Cryoport’s intentions, hopes, beliefs, expectations, representations, projections, plans, or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to Cryoport’s industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as Cryoport’s outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Cryoport operates, Cryoport’s plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, Cryoport’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of Cryoport’s clients. Forward-looking statements also include those related to Cryoport’s anticipation of continued growth in its services business and ongoing softness in product sales; Cryoport’s plans and expectations relating to its previously announced cost reduction and capital realignment strategies, including Cryoport’s plans to complete these adjustments by the year’s end and Cryoport’s belief that these measures will lead to a return to positive adjusted EBITDA during 2025; Cryoport’s expectations that the macroeconomic and sector-specific challenges that have impacted many companies serving the life sciences industry to continue into the near future; and Cryoport’s belief that it is strategically positioned to leverage the anticipated long-term growth in the Cell & Gene therapy market through Cryoport’s comprehensive and integrated supply chain solutions. It is important to note that Cryoport’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, trends in the products markets, variations in Cryoport’s cash flow, market acceptance risks, and technical development risks. Additional risks and uncertainties include difficulties, delays or Cryoport’s inability to successfully complete its planned cost reduction and capital realignment measures, which could reduce the benefits realized from such activities within the time periods currently anticipated. Cryoport’s business could be affected by other factors discussed in Cryoport’s SEC reports, including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

Three Months Ended
September 30,
(unaudited)

Nine Months Ended
September 30,
(unaudited)

(in thousands, except share and per share data)

2024

2023

2024

2023

Revenue

Life Sciences Services revenue

$              39,278

$              36,022

$            114,104

$            107,062

Life Sciences Products revenue

17,386

20,135

54,749

68,933

Total revenue

56,664

56,157

168,853

175,995

Cost of revenue:

Cost of services revenue

21,220

20,803

63,927

59,887

Cost of products revenue

10,059

11,088

32,576

40,037

Total cost of revenue

31,279

31,891

96,503

99,924

Gross margin

25,385

24,266

72,350

76,071

Operating costs and expenses:

Selling, general and administrative

37,654

36,023

111,921

108,066

Engineering and development

4,157

5,152

13,555

13,291

Impairment loss

63,809

Total operating costs and expenses:

41,811

41,175

189,285

121,357

Loss from operations

(16,426)

(16,909)

(116,935)

(45,286)

Other income (expense):

Investment income

3,059

2,848

8,468

7,962

Interest expense

(889)

(1,357)

(3,472)

(4,197)

Gain on extinguishment of debt, net

17,326

5,679

18,505

5,679

Other income (expense), net

(1,616)

(3,059)

(1,398)

242

Income (loss) before provision for income taxes

1,454

(12,798)

(94,832)

(35,600)

Provision for income taxes

(649)

(471)

(1,247)

(1,598)

Net income (loss)

$                    805

$             (13,269)

$             (96,079)

$             (37,198)

Paid-in-kind dividend on Series C convertible preferred stock

(2,000)

(2,000)

(6,000)

(6,000)

Net loss attributable to common stockholders

$               (1,195)

$             (15,269)

$          (102,079)

$             (43,198)

Net loss per share attributable to common stockholders – basic and diluted

$                 (0.02)

$                 (0.31)

$                 (2.07)

$                 (0.89)

Weighted average common shares outstanding – basic and diluted

49,417,757

48,904,102

49,261,717

48,660,646

 

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

September 30,

December 31,

2024

2023

(in thousands)

(unaudited)

Current assets

Cash and cash equivalents

$                      44,665

$                      46,346

Short-term investments

228,001

410,409

Accounts receivable, net

43,461

42,074

Inventories

23,552

26,206

Prepaid expenses and other current assets

10,658

10,077

Total current assets

350,337

535,112

Property and equipment, net

88,281

84,858

Operating lease right-of-use assets

30,113

32,653

Intangible assets, net

175,815

194,382

Goodwill

54,057

108,403

Deposits

1,493

1,680

Deferred tax assets

1,669

656

 Total assets 

$                    701,765

$                    957,744

Current liabilities

Accounts payable and other accrued expenses

$                      25,194

$                      26,995

Accrued compensation and related expenses

11,275

11,409

Deferred revenue

1,091

1,308

Current portion of operating lease liabilities

5,834

5,371

Current portion of finance lease liabilities

470

286

Current portion of convertible senior notes, net

14,271

Current portion of notes payable

153

149

Current portion of contingent consideration

3,151

92

Total current liabilities

61,439

45,610

Convertible senior notes, net

183,628

378,553

Notes payable, net

1,238

1,335

Operating lease liabilities, net

26,466

29,355

Finance lease liabilities, net

1,306

954

Deferred tax liabilities

3,526

2,816

Other long-term liabilities

569

601

Contingent consideration, net

5,021

9,497

    Total liabilities

283,193

468,721

    Total stockholders’ equity

418,572

489,023

    Total liabilities and stockholders’ equity

$                    701,765

$                    957,744

 

Note Regarding Use of Non-GAAP Financial Measures

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 are included in this release: revenue at constant currency, revenue growth rate at constant currency, operating costs and expenses, excluding impairment loss, net income, excluding impairment loss, and adjusted EBITDA. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period, and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenue received in local (non-U.S. dollar) currency is translated into U.S. dollars at the average exchange rate for the period presented. As a result, fluctuations in foreign currency exchange rates affect the results of our operations and the value of our foreign assets and liabilities, which in turn may adversely affect results of operations and cash flows and the comparability of period-to-period results of operations. When we use the term “constant currency,” it means that we have translated local currency revenue for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenue into U.S. dollars that we used to translate local currency revenue for the comparable reporting period of the prior year. Revenue growth rate at constant currency refers to the measure of comparing the current reporting period revenue at constant currency with the reported GAAP revenue for the comparable reporting period of the prior year.

However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both period-over-period changes in non-GAAP constant currency revenue on the one hand and changes in revenue prepared in accordance with GAAP on the other. We caution the readers of this press release to follow a similar approach by considering revenue on constant currency period-over-period changes only in addition to, and not as a substitute for, or superior to, changes in revenue prepared in accordance with GAAP.

Operating costs and expenses, excluding impairment loss, is defined as operating costs and expenses, excluding impairment losses, if any. Net loss, excluding impairment loss, is defined as net loss, excluding impairment losses, if any. Management believes these measures, when read in conjunction with, and as supplemental to, the corresponding GAAP financial measures, provide a useful measure of Cryoport’s expenses and operating results, a meaningful comparison with historical results, and insight into Cryoport’s operating performance.

Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, net gain on extinguishment of debt, impairment loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable.

Management believes that adjusted EBITDA provides a useful measure of Cryoport’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport’s ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport’s comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport’s GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport’s ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport’s underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport’s underlying business.

Cryoport, Inc. and Subsidiaries

Reconciliation of GAAP operating cost and expenses to Non-GAAP adjusted operating cost and expenses

(unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

(in thousands)

GAAP operating costs and expenses

$        41,811

$             41,175

$      189,285

$      121,357

Non-GAAP adjustments to operating costs and expenses

Impairment loss

63,809

Non-GAAP adjusted operating costs and expenses

$        41,811

$             41,175

$      125,476

$      121,357

Cryoport, Inc. and Subsidiaries

Reconciliation of GAAP net income (loss) to Non-GAAP adjusted net income (loss)

(unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

(in thousands)

GAAP net income (loss)

$              805

$           (13,269)

$      (96,079)

$      (37,198)

Non-GAAP adjustments to net income (loss)

Impairment loss

63,809

Non-GAAP adjusted net income (loss)

$              805

$           (13,269)

$      (32,270)

$      (37,198)

 

Cryoport, Inc. and Subsidiaries

Reconciliation of GAAP net income (loss) to adjusted EBITDA

(unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

(in thousands)

GAAP net income (loss)

$              805

$      (13,269)

$      (96,079)

$      (37,198)

Non-GAAP adjustments to net income (loss):

Depreciation and amortization expense

7,836

6,911

22,863

20,038

Acquisition and integration costs

308

675

896

6,304

Cost reduction initiatives

568

1,116

Investment income

(3,059)

(2,848)

(8,468)

(7,962)

Unrealized loss on investments

3,535

2,336

2,593

2,300

Gain on insurance claim

(2,642)

Foreign currency (gain)/loss

(1,724)

710

(762)

114

Interest expense, net

889

1,357

3,472

4,197

Stock-based compensation expense

4,838

5,976

15,291

16,960

Gain on extinguishment of debt, net

(17,326)

(5,679)

(18,505)

(5,679)

Impairment loss

63,809

Change in fair value of contingent consideration

316

250

(1,329)

250

Other non-recurring costs

Income taxes

649

471

1,247

1,598

Adjusted EBITDA

$         (2,365)

$         (3,110)

$      (13,856)

$         (1,720)

 

Cryoport, Inc. and Subsidiaries

Total revenue by type for the three months ended September 30, 2024

(unaudited)

Life Sciences
Services

Life Sciences
Products

Total

(in thousands)

As Reported

$             39,278

$                17,386

$             56,664

Non US-GAAP Constant Currency

39,193

17,340

56,532

FX Impact [$]

85

46

132

FX Impact [%]

0.2 %

0.3 %

0.2 %

Cryoport, Inc. and Subsidiaries

Total revenue by type for the nine months ended September 30, 2024

(unaudited)

Life Sciences
Services

Life Sciences
Products

Total

(in thousands)

As Reported

$           114,104

$                54,749

$           168,853

Non US-GAAP Constant Currency

114,220

54,774

168,994

FX Impact [$]

(116)

(25)

(141)

FX Impact [%]

(0.1 %)

(0.0 %)

(0.1 %)

 

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SOURCE Cryoport, Inc.

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WILDBRAIN REPORTS Q1 2025 RESULTS

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Q1 2025 Highlights

Revenue was $111.0 million, compared to $105.5 million in Q1 2024.Net loss was $10.6 million, compared with net loss of $15.5 million in Q1 2024.Adjusted EBITDA1 was $15.3 million, compared to $18.9 million in Q1 2024.Cash provided by operating activities was $25.8 million, compared to cash used in operating activities of $3.0 million in Q1 2024.Free Cash Flow1 was positive $4.8 million, compared to negative $25.4 million in Q1 2024.

TORONTO, Nov. 7, 2024 /CNW/ – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX: WILD), a global leader in kids’ and family entertainment, today reported its first quarter (“Q1 2025”) results for the period ended September 30, 2024.

Josh Scherba, WildBrain President and CEO, said: “We started Fiscal Year 2025 with strong growth in Global Licensing, led by our iconic brands—Peanuts, Strawberry Shortcake and Teletubbies. The work we’ve been doing to simplify our business and focus on our key brands, especially building new fandom and engagement for Strawberry and Teletubbies, is showing greenshoots in our results as consumers reengage with these beloved brands. In our production business, the pipeline continues to build, and that activity will fuel earnings growth later in this fiscal year, and more importantly, in Fiscal Year 2026 and beyond. We are harnessing momentum across our business and are well positioned to deliver growth in both revenue and profitability this fiscal year.”

Nick Gawne, WildBrain CFO, added: “As we announced in July, we are pleased to have successfully refinanced our debt, extended our maturity and repaid the convertible debentures. The strength in Global Licensing this quarter highlighted our strategy focusing on key franchises, and we continue to execute on our priorities of simplifying our business, reducing leverage over time and prioritizing on our high-growth areas of the business while managing our operating efficiency.”

Fiscal Year 2025 Outlook

The Company reaffirms its previously announced outlook for Fiscal Year 2025. We expect:

Revenue growth of approximately 10 to 15%, andAdjusted EBITDA growth of approximately 5 to 10%.

Q1 2025 Financial Highlights

Financial Highlights

(in millions of Cdn$)

Three Months Ended

September 30,

2024

2023

Revenue

$111.0

$105.5

Gross Margin

$52.7

$51.8

Gross Margin (%)

47 %

49 %

Adjusted EBITDA attributable to WildBrain

$15.3

$18.9

Net Income (Loss) attributable to WildBrain  

$(10.6)

$(15.5)

Basic Earnings (Loss) per Share

$(0.05)

$(0.08)

Cash Provided by Operating Activities

$25.8

$(3.0)

Free Cash Flow

$4.8

$(25.4)

In Q1 2025, revenue increased 5% to $111.0 million, compared to $105.5 million in Q1 2024.

Content Creation and Audience Engagement revenue decreased 14% to $40.8 million in Q1 2025, compared to $47.2 million in Q1 2024. Production revenue was lower year-over-year as a result of fewer productions in the studios as compared to the prior year as well as timing of live action productions. Audience Engagement partially offset the drop in Content Creation revenues with growth in music licensing and YouTube network revenues.

Global Licensing revenue increased 27% to $62.9 million in Q1 2025, compared to $49.5 million in Q1 2024. Revenue in the quarter was driven by strong growth in Peanuts, growth within our global licensing agency, WildBrain CPLG, as well as strong growth in WildBrain’s owned brands, Strawberry Shortcake and Teletubbies.

Gross margin for Q1 2025 was 47%, compared to gross margin of 49% in Q1 2024. Gross margin for Q4 2024 was $52.7 million, an increase of $0.9 million, compared to $51.8 million for Q1 2024. 

Cash provided by operating activities in Q1 2025 was $25.8 million, compared to $3.0 million cash used in operating activities in Q1 2024. Free Cash Flow was positive $4.8 million in Q1 2025, compared with Free Cash Flow of negative $25.4 million in Q1 2024.

Adjusted EBITDA declined 19% to $15.3 million in Q1 2025, compared with $18.9 million in Q1 2024. Higher gross margin dollars were offset by higher SG&A, reflecting the recovery of a previously reserved bad debt of $2.8 million in Q1 2024.

Q1 2025 net loss was $10.6 million compared to net loss of $15.5 million in Q1 2024. The change was primarily driven by higher gross margin dollars, offset by higher SG&A and higher interest costs.

1.

Free Cash Flow, Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures – see below for further details.

Q1 2025 Conference Call

The Company will hold a conference call on November 8, 2024 at 10:00 a.m. ET to discuss the results.

To immediately join the call by phone on that date without operator assistance, please use the following URL to receive a toll-free automated instant call back connecting you into the conference:

https://link.meetingpanel.com/?id=11401

Alternatively, you may dial direct to be entered into the call by an operator, referencing conference ID 11401 at +1 888-510-2154 in North America or +1 437-900-0527 internationally.

If dialing in, please allow 10 minutes to be connected to the conference call.

Replay will be available after the call on +1 (888) 660-6345 or +1 (289) 819-1450, under passcode 11401#, until November 15, 2024.

The audio and transcript will also be archived on our website approximately three business days following the event.

For more information, please contact:

Investor Relations: Kathleen Persaud – VP, Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089

Media: Shaun Smith – Sr. Director, Global Communications & Public Relations, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230

About WildBrain

At WildBrain we inspire imaginations through the wonder of storytelling. As a leader in 360° franchise management, we are experts in content creation, audience engagement and global licensing, cultivating and growing love for our own and partner brands around the world. With approximately 14,000 half-hours of kids’ and family content  in our library—one of the world’s most extensive—we are home to such treasured franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi. WildBrain’s mission is to create exceptional entertainment experiences that captivate and delight fans both young and young at heart.

Our studios produce such award-winning series as The Snoopy Show; Snoopy in Space; Camp Snoopy; Strawberry Shortcake: Berry in the Big City; Sonic Prime; Chip and Potato; Teletubbies Let’s Go! and many more. Enjoyed in more than 150 countries on over 500 platforms, our content is everywhere kids and families view entertainment, including YouTube, where our network has garnered over 1.5 trillion minutes of watch time. Our television group owns and operates some of Canada’s most-loved family entertainment channels. WildBrain CPLG, our leading consumer-products and location-based entertainment agency, represents our owned and partner properties in every major territory worldwide. 

WildBrain is headquartered in Canada with offices worldwide and trades on the Toronto Stock Exchange (TSX: WILD). Visit us at wildbrain.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain’s current assumptions and expectations regarding future events as at the time they are made. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-IFRS Measures

In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company’s use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow.

Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company’s financial performance or a measure of liquidity and cash flows.

“Adjusted EBITDA” means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company’s ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes.

“Adjusted EBITDA attributable to the Shareholders of the Company” means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non-controlling interests.

“Gross Margin” means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company’s ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit.

“Free Cash Flow” means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company’s ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities.

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SOURCE WildBrain Ltd.

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Tucows Reports Financial Results for Third Quarter 2024

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TORONTO, Nov. 7, 2024 /PRNewswire/ – Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its financial results for the third quarter ended September 30, 2024. All figures are in U.S. dollars.

“Tucows finished the third quarter of 2024 with strong year-over-year growth of revenue, gross profit and adjusted EBITDA. We have focused on generating revenue and margin gains, and as importantly, we have implemented cost controls across all of our businesses, said Elliot Noss, Tucows President and CEO. In our Ting business, we recently undertook a second reduction in workforce as part of a capital efficiency plan and operational pivot towards maximizing penetration and contribution of existing network footprints. We also continued to deleverage the business with payments on the syndicated debt using cash flow from Wavelo and Tucows Domains.”

Financial Results

Consolidated net revenue for the third quarter of 2024 increased 6.1% to $92.3 million from $87.0 million for the third quarter of 2023, driven primarily by year-over-year revenue gains from Ting and Domains.

Gross profit for the third quarter of 2024 increased 32.4% to $22.2 million from $16.8 million from the third quarter of 2023. The increase in gross profit was driven primarily by large gross margin gains from Ting, as well as gains from Domains. The increase continues to be partially offset by network depreciation from the Ting network.

Net loss for the third quarter of 2024 was $22.3 million, or a loss of $2.03 per share, compared with net loss of $22.8 million, or $2.09 per share, for the third quarter of 2023. The decreased loss was primarily driven by increases in revenue and gross profit, as well as by a decrease in operating expenses.

Adjusted EBITDA1 for the third quarter of 2024 increased 94.3% to $8.7 million from $4.5 million for the third quarter of 2023. The year-over-year increase was primarily due to growth of revenues from Domains and Ting, and cost management in the Ting business.

Cash equivalents, restricted cash and restricted cash equivalents at the end of the third quarter of 2024 were $91.1 million compared with $52.2 million at the end of the second quarter of 2024 and $122.4 million at the end of the third quarter of 2023.

Summary Financial Results
(In Thousands of US Dollars, Except Per Share Data)

3 Months ended September 30

9 Months ended September 30

2024 (unaudited)

2023 (unaudited)

% Change

2024 (unaudited)

2023 (unaudited)

% Change

Net Revenues

92,297

86,971

6 %

269,177

252,379

7 %

Gross Profit

22,188

16,753

32 %

61,314

48,846

26 %

Income Earned on Sale of Transferred Assets, net

3,853

4,312

(11 %)

10,831

12,971

(16) %

Net Income (Loss)

(22,297)

(22,772)

2 %

(67,385)

(72,823)

7 %

Basic earnings (Loss) per common share

(2.03)

(2.09)

3 %

(6.15)

(6.71)

8 %

Adjusted EBITDA¹

8,688

4,472

94 %

22,068

12,897

71 %

Net cash provided by (used in) operating activities

(4,564)

(6,936)

34 %

(14,950)

(13,774)

(9) %

1.     This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Summary of Revenues, Gross Profit and Adjusted EBITDA
(In Thousands of US Dollars)

Revenue

Gross Margin

Adj. EBITDA¹

3 Months ended
September 30

3 Months ended
September 30

3 Months ended
September 30

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

Ting Internet Services:

Fiber Internet Services

15,310

12,855

10,989

7,986

(5,070)

(12,176)

Wavelo Platform Services:

Platform Services

10,075

10,697

10,012

10,355

Other Professional Services

7

377

7

149

Total Wavelo Platform

Services

10,082

11,074

10,019

10,504

3,429

4,207

Tucows Domain Services:

Wholesale

Domain Services

49,871

47,657

9,691

9,597

Value Added Services

5,175

4,252

4,666

3,715

Total Wholesale

55,046

51,909

14,357

13,312

Retail

9,669

9,179

5,453

5,063

Total Tucows Domain

Services

64,715

61,088

19,810

18,375

11,529

10,913

Corporate:

Mobile Services and Eliminations

2,190

1,954

(1,134)

(611)

(1,200)

1,528

Network Expenses:

Network, other costs

n/a

n/a

(6,864)

(7,322)

n/a

n/a

Network, depreciation of property and equipment

n/a

n/a

(9,414)

(9,138)

n/a

n/a

Network, amortization of intangible assets

n/a

n/a

(366)

(378)

n/a

n/a

Network, impairment

n/a

n/a

(852)

(2,663)

n/a

n/a

Total Network Expenses

n/a

n/a

(17,496)

(19,501)

n/a

n/a

Total

92,297

86,971

22,188

16,753

8,688

4,472

1 This Non-GAAP financial measure is described below and reconciled to GAAP net income in the accompanying table.

Notes: 

1. Adjusted EBITDA

Tucows reports all financial information required in accordance with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company typically discloses and discusses a non-GAAP financial measure, adjusted EBITDA, in press releases and on investor conference calls and related events that exclude certain non-cash and other charges as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance.

The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company’s core business using similar evaluation measures to those used by management. The Company uses adjusted EBITDA to measure its performance and prepare its budgets. Since adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA to net income based on U.S. GAAP, which should be considered when evaluating the Company’s results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure.

The Company’s adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), accretion of contingent consideration, stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars.

The following table reconciles income before provision for income taxes to Adjusted EBITDA (dollars in thousands):

3 Months ended September 30

9 Months ended September 30

2024
(unaudited)

2023
(unaudited)

2024
(unaudited)

2023
(unaudited)

Net income (Loss) for the period

(22,297)

(22,772)

(67,385)

(72,823)

Less:

Provision (recovery) for income taxes

3,074

(822)

6,068

(5,557)

Depreciation of property and equipment

9,526

9,275

29,686

26,770

Impairment of property and equipment

852

2,663

905

4,679

Amortization of intangible assets

1,209

2,620

4,089

8,101

Interest expense, net

13,095

10,739

37,527

29,120

Loss on debt extinguishment

14,680

Stock-based compensation

1,808

2,308

5,383

6,606

Unrealized loss (gain) on foreign exchange revaluation of foreign denominated monetary assets and liabilities

(197)

340

357

254

Acquisition and transition costs*

1,618

121

5,438

1,067

Adjusted EBITDA

$8,688

$4,472

$22,068

$12,897

* Acquisition and other costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments.

Management Commentary

Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, November 7, 2024, management’s pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at http://www.tucows.com/investors/financials.

Following management’s prepared commentary, for the subsequent seven days, until Thursday, November 14, 2024, shareholders, analysts and prospective investors can submit questions to Tucows’ management at ir@tucows.com. Management will post responses to questions in an audio recording and transcript to the Company’s website at http://www.tucows.com/investors/financials, on Tuesday, November 26, 2024, at approximately 4 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly.

About Tucows

Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains (https://tucowsdomains.com) manages approximately 25 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (https://tucows.com).

Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/tucows-reports-financial-results-for-third-quarter-2024-302299323.html

SOURCE Tucows Inc.

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Strengthening Canada’s leadership in telecommunications technology: A new partnership with Ericsson

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The $634.8 million project aims to advance 5G technology and boost R&D and wireless networking technologies in Canada

OTTAWA, ON, Nov. 7, 2024 /CNW/ – In today’s globalized world, Canadians increasingly depend on fast and reliable wireless services in every facet of their lives. That is why the Government of Canada is investing in innovative solutions that will enhance Canada’s telecommunications industry.

Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, finalized an investment of $79.1 million under the Strategic Innovation Fund to support Ericsson’s $634.8 million project to advance 5G technologies for next-generation telecommunications networks. The project will also involve R&D work for cloud-based wireless technologies and architectures, as well as artificial intelligence and quantum computing solutions to meet the needs of customers. This work will be performed at Ericsson’s facilities in Ottawa, Ontario, and Saint-Laurent, Quebec.

This partnership will bring economic benefits to the Ottawa and Montréal regions, stimulate Canada’s 5G ecosystem and drive growth in the entire tech sector. The project is also expected to create 1,200 co-op student positions and more than 190 jobs and to sustain 2,400 jobs in Canada, primarily in well-paying R&D positions. And each job created in this sector creates 1.3 new jobs in the broader economy. The government is making sure that Canada remains at the forefront of telecommunications technology to meet the demands of the future.

Quotes

“Fast, reliable and effective wireless telecommunications are essential to the modern economy. That is why our government is investing in next-generation technologies through its partnership with Ericsson, a global leader in this field with 71 years of deep roots in Canada. This investment will help secure Canada’s position at the forefront of cutting-edge telecommunications development and deployment.”
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“Along with being a global leader in the telecommunications sector, Ericsson has also been an outstanding member of the Kanata business community, with deep historical ties to Canada. I am pleased to see this relationship between Ericsson and Canada being strengthened with this investment, which will bolster our economy and contribute to the creation of more than 190 excellent new jobs and the maintenance of 2,400 positions for Canadian workers.”
– The Honourable Jenna Sudds, Minister of Families, Children and Social Development

“Digitalization is an incredible opportunity, and our partnership with the Canadian government, through the Strategic Innovation Fund, will accelerate the advancement of key technologies including 5G, artificial intelligence and quantum computing. This collaboration will not only bolster Canada’s leadership in digital infrastructure but also benefit the entire region. By enhancing our R&D efforts in Ottawa and Montréal, we aim to stimulate Canada’s 5G ecosystem and contribute to the prosperity of the entire tech sector.”
– Börje Ekholm, President and CEO of the Ericsson Group

Quick facts

LM Ericsson, Ericsson Canada Inc.’s parent company, was founded in Sweden in 1876, and Ericsson Canada Inc. has been in operation in Canada since 1953.LM Ericsson has played a significant role in Canada’s innovation ecosystem for over 70 years, having invested over $7.2 billion in R&D over that period.The Ericsson project highlighted today will enable Canada to support the development of international wireless telecommunications industry standards necessary for the future generation of telecommunications hardware, software and services.The next generation of 5G wireless technology is expected to add $40 billion annually to Canada’s economy in the next four years.The information and communications technology sector plays an essential role in Canada’s economy and provides Canadians with good middle-class jobs. Each new job created by an investment in this sector creates 1.3 new jobs in the broader Canadian economy. Every dollar spent in this sector adds almost two dollars to our economy.The Strategic Innovation Fund (SIF) provides major investments in innovative projects that will help grow Canada’s economy for the well-being of all Canadians. SIF covers all sectors of the economy and is available to for-profit and not-for-profit organizations, with the goal of supporting the Canadian innovation network.

Associated links

Strengthening Canada’s position as a global tech leader while growing our economy and creating jobsEricsson Canada Inc.What is 5G?

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Find more services and information on the Innovation, Science and Economic Development Canada website.

Follow Innovation, Science and Economic Development Canada on social media.
X (Twitter): @ISED_CA | Facebook: Canadian Innovation | Instagram: @cdninnovation | LinkedIn: Innovation, Science and Economic Development Canada

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