severe damage - first quarter revenues are already above $11 mln
so revenues for the remaining three quarters combined will just be around $30 mln. 2014 estimates will have to come down as well with the largest customer scaling back in terms of orders. Despite the almost 30% haircut in the last few days the stock should still be sold here on ongoing uncertainty. Would expect at least one analyst downgrade tomorrow.
Quite honestly, I find it remarkable that they are only projecting loss of 5M if the NM contract is in such trouble. Again, it was not the respiratory panel that was being replaced (at least right now) which is GNMK's biggest revenue source. I will guess that the upcoming call will cite the reimbursement issues as being a major source of the question on revenue -- once this is sorted out, revenues should be more predictable.
We are still looking at 50% revenue growth (rather than the projected 75%) and GNMK has a history of positive earnings surprises. Hopefully, mgt will be able to provide additional color to their morning statement that helps sort out their immediate future.
If they had already done $11M in Q1, are we to believe that the next 3 Qtrs GNMK will do about $6Mish in revenues quarterly? If so, these ANAL-ysts are certainly asleep on the job!! Yet, Cowan has a BUY rating on this company? LMAO!! As you can see, Cowan was too quick to defend the company without understanding the facts!!
NexGen revenues won't be meaningful till the 2nd half of 2014. This is assuming there are no further delays.