SwingTrade Member Forum

[Rawnoc]

REPR thoughts as of 10/16/10...

MY ANALYSIS OF THIS PAST Q PLUS FORWARD PREDICTION:

(1) Freedom60 Sales up 48%, recurring revenue up 134%. 10Q forecasts further increases as a result of Hizentra drug approval earlier this year and word of mouth continuing to spread.

(2) I calculate is that they sold around 800 Freedom60 devices in the Q bringing the total in operation to around 10,100+ with a recurring revenue stream of now $774,000 per Q. The recurring revenue stream now going forward is higher than any other quarter prior to this quarter in total Freedom60-related sales.

(3) Sequential sales +10%, gross profit up 15%, operating profit up 26%, net income up 15% despite hiring a bunch of new sales and production staff.

PREDICTION....

REQ-Q-VAC sales of $130,000 (were $155k then $140k the last two Qs)
FREEDOM60 Device Sales of 1200 of them sold for $258k (were 300 then 800 sold the last two Qs)
FREEDOM60 recurring tubing sets revenue of $820,000 (based on 10,600 devices average in operation during the Q)
Total sales expectation = $1,208,500.

Gross profit margin of 67% = 810,000
Other operating Expenses = $500,000
Operating Profit = $310,000
Pre-tax EPS of +.01/share or +.04 annualized.
Current PE of 3-4 for a share price .12/.16.
PE of 15 = .60/share target.
With EPS of +.02/+.03 in future Qs in 2011, then target becomes $1.20/$1.80

The company continues to hire and expand.