NEO: "Perhaps there is a new, undisclosed expense that offsets the increase in revenue."
Possibly, but I would doubt it, with the possible exception that they continue to add to their sales force. On face, the bump may swing 2-3 cents in the right direction, but for a co. at "break even" operations, why would they speculate what it will do when they can grab a better PR headline announcement when they actually crunch the numbers and report actual profits in July. Mgmt has had a good track record of under-promising and over-delivering, so my expectations are that this is the first of a series of good news events that will signify another leg up in the development of this co and the value will follow. Of interest to note, today's PR made no mention of the CVD alliance (which mgmt. has said will add to the revenue stream starting in the 2nd 1/2 of the year), so the growth was internal and organic, leaving any other business developments as ALSO good news.
I'm still a "big picture" investor here. I could give a rat's ass about profits so long as the revenue growth and business market share growth is healthy. The co. is still tiny (sub=$100 million/year in revenues) and they will not become a real player in the space unless/until they can triple their revenues. I've been invested since they were at $8 million/year, and they are now back to a 30% YOY target; healthy for any co.
It's been about 5 years since I had the conversation with Steve Jones (now VP of Finance and CCO but then CFO) and he told me that his philosophy was that any growth beyond 25% YOY and you ran the risk of "the wheels falling off" because things moved too fast, and his job was to make sure that this never happened to this co.
BTW, at a DCA of 70cents/share and an investment of 7 years, I am about at 5X my original investment just as the co. is at about 10X their sales when I bought them. My guess is that the share price will reflect closer to a $5-7/share value by the end of the year barring some new medicare snafu or major lab error that gets them bad press.
PS, sorry I missed your NXTM post of about a week ago; I finally took my family on that European trip that had been the dream for several years and promised to completely disconnect. Glad that another major investment had a bad news day and that I was blissfully unaware of it ;)
AJ
