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Replies to #91 on Biosyent Inc (RX)
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MikeDDKing

03/30/12 7:01 AM

#92 RE: valuemind #91

IMO you are interpreting that data incorrectly. Insecticide sales were $217,250 in Q4'10 and $45,895 in Q4'11. If insecticide sales in Q4'11 were the same as those in Q4'10 they would have made roughly $0.01/share more and Q4'11 EPS would have been more than double that of 2010. I don't think they have much variable overhead costs for the insecticide business because they aren't marketing it heavily and are basically maintaining the business. If they did segment reporting they would probably show a significant loss in the insecticide business for Q4'11 for that segment. I'm sure the pharmaceutical sales segment made more money in Q4'11 than it did in Q4'10 by a long shot.

Keep in mind that the insecticide business is very seasonal and lumpy. In Q4'09 they only had $39,967 in insecticide sales. After that poor Q4'09 they went on to have a great 2010. I think the insecticide product is a good business for them but it generally isn't growing and the results do fluctuate especially on a quarterly basis.