Replies to post #272768 on Avid Bioservices Inc (CDMO)

[corporalagarn]

Yes, I could be wrong, but I doubt it. The revenue deferred will be taken into income this quarter. So will the expenses to generate that revenue that were put to inventory. There is not much on the income statement. If sales are $20m, then cost of sales will be at least $11m. That's how it works. Those costs were not expensed last quarter. Preferred payments will be about $1.4m. SG&A runs at about $4-5m. R&D would have to be under $4m. Possible, but not likely. It was $8m in the first quarter. There certainly isn't going to be an $8m profit as someone stated. That is impossible.

[NoMoDo]

There is a great chance that it will be sustainable from here on in. The Myford plant should be in full production any time now. According to their estimates, they put Myford to be at full production around Oct 15. The second plant will mean a potential of $20mil per quarter. That could put them slightly over breakeven.

You may have also noticed that they said at the last CC that the 4th q revenues were solely from the first plant at $18mil. So I am guessing that the potential to go well above $20mil is there.

Always under sell and over deliver.

[Carboat]

1) The cost of goods sold is also deferred
2) Management is not projecting a profit
3) Of course the market would know it was an anomaly
4) This idea that bb members know something that the market doesn't know is how people are in the underwater pphm tarde.

[Couch]

I like the way you are thinking toolong - I'd like nothing more than for PPHM to catch the market off guard. Give the shorts a few days of pain to catch up wouldn't bother me either.

I like Avid expansion no question......I just want to like the science more!