devnull, yes, its good to see that they are still looking for a strong year, albeit slightly down from prior guidance. In their PR dtd. 10/3/16 they thought they would do at least $55M in revenue per year starting this year, and here we are a few weeks into the year and its already down to $52M.
This is starting to look like what happened to the guidance they provided for 2H '16 in August. For those of you scoring at home, that was a couple of months into the period over which they were providing guidance, so you would expect it to be somewhat accurate. In their PR dated 8/10/16, they said they should generate $13.5M in revenues over that period. Then 6 days later, in connection with issuing their 2Q #'s, they reiterated that guidance.
But then they put out a 3Q report with only $4M of revenue and we haven't heard a peep about 2H '16 revenue guidance since those August PRs. I would not bet the ranch that they will report $9.5M of revenue for 4Q boys & girls.
Even the See-Through Equity analyst didn't buy their jive, and is calling for 4Q revenues to come in at $7.5M.
I still like their story and am willing to give them a little slack regarding the accuracy (or lack thereof) of their revenue guidance. When you are starting up a business from scratch its not easy to pinpoint the pace at which you will progress. Also there is the question of whether your auditors will agree with you regarding your revenue recognition timing. I just hope they can at least come a little close to what they are shooting for.
