Replies to post #345446 on Avid Bioservices Inc (CDMO)

[Cubflyer1946]

At least someone gets the dire nature of the current circumstances, and what they bode for the future of this POS!

[ArchieK]

I have the sinking feeling that this debacle will lead to us being taken out by someone who would know what to do with all this fancy capacity, and at a price that is pennies compared to if they had to do it to a truly going concern. Ugh.

[jbainseky]

It isn't the sales to profit ratio, it is execution to profit ratio. The backlog keeps growing so they are growing sales, but the backlog is commitments to execute, not the execution itself. AVID is probably staffed to execute substantially more than they currently do in preparation of a client giving the order to execute (say upon a drug's approval) When that happens, costs do not go up but revenue increases. I doubt they are staffed to run full up, but highly likely they are technically "overstaffed" right now leading to operating losses. I would love for an analyst to ask such questions in the CC. Backlog is also made up of the first order for after a drug is approved, so once approved, the backlog AND EXECUTION grows quickly.

FFTT
JBAIN

[Bluerinse]

You just hit the nail on the head ! And our incompetent CEO probably just drove the final nail in our coffin. Only hope is buyout as clearly this team can't get it done.