Correction re inventory write-off: In msg #4519, I said, “An inventory write-off of $2.9M was recorded during 2Q07, but this was a non-cash item and presumably not the cause of the lowered guidance for the year-end cash balance.” However, on the 2Q07 CC, Dr. Cox pointed out that the amount of ATryn lost at the contractor’s site will quickly be replaced by GTC, which makes the write-off effectively a cash loss. Cox further stated that the year-end cash guidance would have been lowered by the full amount of the $2.9M write-off, but GTC realized a small productivity improvement to offset some of the inventory loss, resulting in the year-end cash guidance being lowered only $2.4M at the midpoint of the guidance range.
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”