CytoSorbents Corporation (CTSO)

[techxen]

The company highlighted their growth/profitability strategy on the last conference call which bears restating. During the analyst Q&A Dr. Chan did a comparison of how NxStage (acquired by Fresenius) grew at a tremendous rate over the years, but at the cost of profitability. Increasing sales and marketing costs as well as associated infrastructure will delay a company's ability to breakeven - something that Dr. Chan and team want to avoid and they have done an admirable job at staying on top of their costs. The company has gone on record multiple times stating: "we are expecting that the second half of 2017 in terms of CytoSorb sales will exceed that of the first half of 2017 and we reiterate our guidance on achieving operating profitability in 2018" and "after we get the operating profitability -- that breakeven point, we expect a $0.50 on every dollar will drop to the bottom line."

The way they are executing this strategy is significant, and although it may take a bit longer due to the fact that sales are growing more organically, it will make them a more attractive partner and acquisition target.