Avid Bioservices Inc (CDMO)

[corporalagarn]

The next two quarters could be very ugly as well with negative gross profits again. From memory, last quarter we had $12m in sales and $16m in cost of sales which included $5m in "idle capacity". Inventory decreased $8m, so I'm not sure if anything was produced at all. If we have $7m in sales this quarter, "idle capacity" could equal that number or more, plus whatever the other cost of sales/inventory reduction is. It's ugly. There seems to have been way too much inventory. The old crew were really hacks. I wouldn't be surprised if a lot more inventory gets heaved. What a debacle.

Looking forward to see what they do for cash. Should know soon. It won't be from IP.

We'll see how this one goes. Read quick if interested.