Replies to post #38317 on Decision Diagnostics Corp (DECN)

[scoop9]

So you were saying at some point,DECN may have been struggling with production due to Tooling issues,which prevented them from filling orders.

Which is a separate issue(lack of production capacity impacting Sales) from the inventory written off specifically from UDI failure.

As for the "rework" aspect:

"This seems very unlikely to me. Just a guess on my part but the thought of paying somebody to manually tear open thousands of $12 boxes of strips and re-box them to comply with a new labeling mandate seems economically unfeasible. Far better to just try to sell them in a less restrictive market, even at a reduced cost."

That's fair. Makes sense....

Separate question;In your understanding of this general area of products,in your estimation,is $2-3/unit cost make sense? Less as some have said? Pennies to make? Or when adding it all up(CGS),$2 or so a unit?

Thx...


Scoop

[scoop9]

Ed,this is worth exploring further.

Production issues?

Didn't they mention a sales shortfall due to some issues in Q1?

I figured this was just related to Conductive backing out of the CM agreement with DECN due to/in fear of JNJ pressure.

Do you think this explains the Sales failure of the first 6 months of the launch? They couldn't produce product correctly?

And then on top of that UDI issues?

More currently,they stated in Q3 they have capacity ready to go to produce at least 400,000 units/month. In fact,don't their current inventory levels indicate they have substantial amount of product in stock? Yet,only $300,000 in sales.


Scoop