Revenue Pre-Announcement Beats Our Estimate. Increasing
Price Target to $0.70/share
By Brian Marckx, CFA
This morning (1/7/13)
BioLife (OTC Markets:
pre-announced that Q4 and full-year 2012 revenue are expected to
be approximately $2.0 million (~ +158%) and $5.7 million (~
+107%), respectively, which are well ahead or our $1.4 million
and $5.0 million estimates. Q4 and 2012 revenue will be a
quarterly and annual record for BLFS. This will mark the
10th consecutive quarter that BioLife turned in record revenue
and equates to 34% CAGR of revenue since 2007. This
morning's press release also notes that Q4 is expected to show
positive cash flow from operations.
Management continues to expect strong growth in 2013 from
their regenerative medicine business and notes that they are
pursuing additional contract manufacturing opportunities.
We have updated our model for today's revenue pre-announcement
and will do so again when BLFS files their 10-K which is expected
by April 1.
We are maintaining our Outperform rating. The update to
our model along with an increase in comp multiples since our last
update has moved our price target up from $0.50/share to
$0.70/share. See our valuation methodology and comp cohort
as well as our financial model in our full report on BLFS
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