This is an important correction to a story published on StoryTrading on November 19th, titled “APDN up 10% as Short Perpetrator Reported to Authorities & CEO Suggests Company will be Profitable in Quarter Ending December 31st.” Below you’ll see why this title should have read “September 30th” at the end.
Upon carefully re-reviewing the webcast, it appears that Dr. Hayward, CEO of APDN strongly suggested that APDN will report an ADJUSTED profit for the quarter ending September 30th and which will be reported on or around December 14th, not for the quarter ending December as was originally reported.
Our original story said the following:
This morning at the SouthWest Ideas Investor conference in Texas, at approximately 12:20pm EST, the CEO strongly suggested that the company will be profitable in the quarter ending December 31st. To hear it in his own words visit the replay of the webcast and go to SLIDE 28 and MINUTE 26:30. While discussing the below EBITDA bar chart, he said “if you plot that out past Q4 & into Q1 ending December, you will see that it WILL cross over.” (please note – Q1 will be reported on or around February 10th, 2016)
Corrected version below with changes in red:
This morning at the SouthWest Ideas Investor conference in Dallas, Texas at 12:07pm EST, the CEO strongly suggested that the company will be profitable in the quarter ending September 30th. To hear it in his own words visit the replay of the webcast and go to SLIDE 28 and MINUTE 26:29. While discussing the below EBITDA bar chart, he said: “Our quarterly adjusted EBITDA loss is diminishing. If you plot that out past the third quarter & into the fourth quarter ending September, which we report in December you could see that it WILL cross over.”
This is a significant development. Given that Dr. Hayward made this comment some 49 days after the close of the September quarter, one would think that he would have to already know that the quarter ended September 30th was profitable in order to make this strong suggestion. I’ve been carefully reviewing the last several quarters of conference calls to evaluate Dr. Hayward’s honesty and credibility as far as forecasting is concerned. So far, my evaluation shows he has not only been honest but also conservative in his comments about revenue/profitability for upcoming quarters. I may publish my findings on this at a later date.
In the meantime, as this corrected transcript of last week’s event is disseminated to the market; we could see APDN stock rise considerably into earnings scheduled for mid-December. If APDN does indeed show an adjusted profit for the quarter ending September 30th, this key milestone will have been achieved far ahead of what any investor or analyst had been previously expecting.
NOTE: please keep in mind Dr. Hayward is talking about an ADJUSTED profit, not a net profit. Do not look for or expect a net profit in the headlines of the Q4 report.