The company reported 1Q16 results on May 17, 2016, with highlights as follows:
Revenues rose to $1.7mn, with growth coming primarily from momentum in the mobile labs business at E-N-G
PositiveID also appeared to benefit from scale, as 1Q16 operating losses narrowed from 1Q15
PSID issued a strong outlook, calling for continued growth throughout the year and a push towards reaching cash flow breakeven by FY17E
Highlights of note are as follows:
Acquisitions drive growth in 1Q16; tracking well with top line guidance for FY16E
PositiveID reported strong top line results in 1Q16, with revenues rising to $1.7mn from $0.1mn in 1Q15. The results were driven primarily by the acquisition of E-N-G, which experienced growth in its mobile labs business. We note that the company appears to be well on its way to meeting its FY16 guidance of $5mn - $6mn, and are maintaining our 2016E revenue estimate of $6.0mn, which would represent more than 100% revenues growth over 2015 revenues of $2.9mn.
Positive Outlook for 2016
PositiveID management issued a positive outlook for the remainder of 2016. In the company's 1Q16 earnings release CEO William Caragol stated that he believes PositiveID's "top line will continue to improve throughout 2016" and that the company can "make additional strides to improve gross margins and meet our goal of achieving cash flow positive." Although we acknowledge the inherent variability from quarter to quarter in PSID's business lines, we are encouraged by this commentary and the degree of growth in 1Q16. Indeed, the combined company's results showed healthy double-digit growth even when comparing to 1Q15 pro forma, as-if-consolidated revenues of $1.4mn. Moreover, the company appears to have continuing strong momentum in its mobile labs business, as PositiveID noted in April that it had shipped a $700,000+ 40-foot, BSL-3 compliant mobile laboratory, which will be recognized during 2Q16.
