Avid Bioservices Inc (CDMO)

[exwannabe]

What the hell is wrong with the fixed cost structure in Avid? Last year they had almost twice the earnings on slightly lower costs. Same pattern across all Qs, this one had way higher costs than can be explained.

The depreciation is less than $1M/Q, so that is not it. Something has jumped off the chart in the last half year.

My guess, the old crew were dumping R&D costs into Avid (easy enough to do, and GAAP only cares about consolidated numbers) in order to claim they were reducing such.

Wish some analyst on the call would have the balls to drill them on this one.

Oh, well. Will be a bloody day on PPHMP land tomorrow. At least hopefully we are getting the scab cleaned up on the wound.