Organovo Holdings Sees FY 2016 Revs From Prior Bookings Of $1.2M-$1.4M

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Organovo Holdings, Inc. (NYSE MKT:
ONVO
) ("Organovo"), a three-dimensional biology company focused on delivering scientific and medical breakthroughs using its 3D bioprinting technology, today issued its full-year fiscal 2016 outlook and affirmed its long-range outlook. Fiscal-Year 2016 Outlook The Company issued its full-year fiscal 2016 outlook for revenue recognized from previously disclosed contract bookings for its commercial liver tissue product and net cash utilization(1). The Company expects: In fiscal 2016, to recognize between $1.2 million and $1.4 million of its approximately $2 million in contract bookings for its exVive3DTM Human Liver Tissue for the period from April 1, 2014 to June 9, 2015. The Company had already recognized approximately $0.3 million from these contract bookings in fiscal 2015. Organovo anticipates that additional revenue from these contract bookings will be recognized in fiscal 2017. In addition, revenue from new contracts signed after June 9, 2015, as well as revenue from grants and collaborations, may also be recognized during the remainder of fiscal 2016. Net cash utilization of between $32 million and $36 million for fiscal-year 2016. The Company had a cash and cash equivalents balance of $86.0 million for its fiscal first-quarter ended June 30, 2015.     Fiscal-Year 2016 Outlook   (September 2015) Total Revenue Recognized From Previously Reported Contract Bookings $1.2 million - $1.4 million Net Cash Utilization $32 million - $36 million Long-Range Outlook The Company affirmed its long-range outlook for potential revenue from its liver tissue product and initiation of commercial contracting for its kidney tissue product. The Company continues to expect: As it penetrates the toxicology market, Organovo's exVive3D™ Human Liver Tissue and service will grow into the tens of millions in annual revenue, and has $100 million+ revenue potential in the future as the Company pursues diligent sales and marketing efforts (inside of a total addressable market of over $1 billion). Initiation of commercial contracting for its kidney tissue product in the calendar third quarter of 2016. Net Cash Utilization Definition (1) In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company provides net cash utilization as a supplemental measure to help investors evaluate the Company's fundamental operational performance. The Company defines net cash utilization as the change in the amount of cash and cash equivalents at the beginning of the reporting period as compared to the end of the reporting period, excluding financing activities (which would include proceeds from the sale of common stock and the exercise of warrants and stock options). Net cash utilization is an operational measure that should be considered in addition to our results prepared in accordance with U.S. GAAP. This operational measure should not be considered as a substitute for, or superior to, U.S. GAAP results. The Company believes net cash utilization is a relevant and useful operational measure because it provides information regarding our cash utilization rate. Management uses net cash utilization to manage the business, including in preparing its annual operating budget, financial projections and compensation plans. The Company believes that net cash utilization is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. However, there is no standardized measurement of net cash utilization, and net cash utilization as the Company presents it may not be comparable with similarly titled operational measures used by other companies. Due to these limitations, the Company's management does not view net cash utilization in isolation but also uses other measurements, such as cash used in operating activities and revenues to measure operating performance.
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