Abbott's a big client, or rather a big company to have as a client.
I'm not sure what the effect of losing their beta-alanine business will be. It looks like their ongoing licensing and royalties were a bigger factor in 2012 than in 2013. It still seems to be enough that it could dent the net profit, but the share price doesn't have much expectation of profit in it, in my opinion.
I come up with numbers like Fab's from the filings. This is where the balance sheet kicks in, IMO. I know I'm preaching to the (very astute) choir. Accordingly, I found some coins in the couch and added in the 4.50s. The news actually came out yesterday during the trading day and it ended the day at 5.30 with stout volume that virtually all occurred after the news. I think there was a large seller today, maybe a fund, and a bunch of stop losses got triggered after it broke below the main 200 day MA. The tangible book is in the very high 5s, with a boatload of cash per share and no debt with an unused credit line. The share price now has future losses built into it, IMO. We'll see. I had to add some trading shares to my core position at this level. IMO, it could snap back pretty quickly.
kip, from the 10k, I get the breakout of licensing/royalties revenues from Abbott as follows:
FY end 6/11 = $300,000 (payment on 6/11)
FY end 6/12 = $554,167 (payments on 1/12 and 3/12)
FY end 6/13 = $912,501 (payments on 7/12, 10/3/12, 12/12, 5/13)
Qtr end 9/30/13 = $150,000
I got the info off the 10k quickly, so could have made a mistake.
Overall revenues aren't too high for the Abbott licensing/royalties, but they are very high margin, I think over 80% gross margin on average.
There's also sales of the raw material beta-alanine sold to Abbott which will end, but I don't see figures on that.
Right, it was the total Abbott sales I'm wondering about. Total royalties for Qtr ending 9/30/13 were $1.5 million with the Abbott portion being $150,000. I don't know that we can presume that the revenue from raw material sales is proportional to the royalties.
If it were, then Abbott's portion would be about 10% of total sales, which would match roughly with 'Customer 3' in section G of the 10-Q. I have a feeling that they're customer 1 or 2, however, because customer 3 had lower sales in 2012. With that thought, NAII is looking at a revenue reduction of around 30% from the loss of Abbott.