AEMD - DARPA Picks Up Year 2 Option - Analyst Blog

By
A A A

DARPA Picks Up Year 2 Option

Brian Marckx, CFA

This morning Aethlon Medical ( AEMD ) announced that DARPA has picked up the second-year option of the five-year $6.8 million DLT contract which will pay the company up to $1.6 million if all of the eight related milestones are met.  DARPA picking up the year-two option is an obvious positive for AEMD and lends additional support for their Hemopurifier technology.    

Through fiscal Q1 2013 (ending 6/30/2012) AEMD had billed $1.58 million of the possible $2.0 million payable under the current 12-month contract.  Subsequent to Q1, AEMD billed an additional ~$180k has now invoiced for seven of the eight milestones under this initial contract (and has completed the final milestone worth $217k but has not yet invoiced for it).  

Assuming all milestones are met through the two-year contract, AEMD will be paid in aggregate ~$3.2 million under these DARPA DLT awards through approximately  December 2013 (or potentially sooner).  This is roughly in-line with our modeled revenue estimates.   DARPA could also pick up the years three through five options which total an additional $3.6 million.  

This morning's press release also notes that Aethlon has partnered with two larger organizations relating to a follow-on DLT contract opportunity called DARPA BAA-12-36.  If AEMD scores the contract, this could offer revenue upside to our model.  The award announcement is slated for this fall.     

Please visit scr.zacks.com to access a free copy of the full research report.
 


 
AETHLON MEDICAL (AEMD): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AEMD

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

36,586,989
  • $41.35 ▼ 2.29%
33,435,019
  • $42.20 ▼ 10.86%
31,919,424
  • $9.72 ▼ 8.30%
30,045,396
  • $26.49 ▼ 1.41%
29,014,873
  • $8.05 ▼ 8%
27,308,018
  • $14.66 ▼ 8.32%
23,704,242
  • $118.93 ▼ 0.06%
23,514,654
  • $17.04 ▼ 0.41%
As of 11/28/2014, 01:06 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com