Replies to post #271102 on Avid Bioservices Inc (CDMO)

[exwannabe]

from insider financial:

Counting both cash and backlog is clearly double counting by about $25M (Need to view the latest 10Q to get the precise number).

When a customer orders, they are often paying up front cash for AVID to set up the line, etc. This is not yet revenue, as that can not be booked prior to "delivery". But it is cash, and it is backlog since not revenue.

It is also on a line item like "unearned income", and that is precisely what you are double counting.

$25M/Q ? Mayyyyybe, but I think that is a bit optimistic.

Cash flow break even? Not till after Avid 2.5 is up (it is about half the size of 1 and 2). That is why they are saying by end of FY '17 (or whatever).

Could they run with the cash on hand until they are cash flow positive? I think they could if somebody put a gun to their heads.

Some have suggested where to find said gun.

[BCS Paladin]

AVID has nothing to do

with our investment.

We invested in a Bio Tech business, not a Mickey Mouse mfg firm for OTHER successful businesses.

We need the RS solely because there is no other way we can sell 50% PLUS of our company to a buyer the Mgt wants.