My quick thoughts on today’s results and conference call. I managed to ask two questions on the call…
SUMMARY and My Conclusions…
1. Revenue was in-line with my Q1 estimate
2. Company re-affirmed > $3.6M cotton revenue and > $9.0M company revenue for the year
3. Growth focus beyond cotton this year will be DNANet, Polyester, and Polyolefins. It’s possible revenue for polyester and polyolefins will skyrocket later this year but CEO didn’t want to commit to that
4. Government revenue is down and the near to intermediate term growth focus for this company is cotton, plastics, and DNANet
5. Forget about pharma for now. It’s obvious the pharma pilot with the asian company didn’t result in commercialization and they have to essentially start over by looking for a new partner for a new pilot
6. Expenses set to climb as they focus on sales reps and this new board. Again looks like the focus is cotton, DNANet, and plastics. He keeps mentioning pharma as well but do not expect any revenue from this in 2016.
All in all, this is in-line with what I expected and glad to see he re-affirmed cotton and company sales YoY growth for 2016. Looking for possible optionality upside in plastics later this year. I’m personally not so excited about DNANet. I think it’s more of a marketing ploy to get in the news and help the stock price than anything else but we’ll see.
I won’t be selling any shares and if I had additional funds, I’d accumulate more shares if this took a hit due to his re-affirmation of FY cotton and company YoY revenue growth.