You can read my prior topic entry from April 17th for the preface to this, but the content of this earnings announcement is everything that I had hoped for. PACB either met or beat earnings estimates, depending on which analyst report you read; both agree they beat revenue estimates; they made 4 new sales, which added to the 2 carried over from the prior quarter makes 6 sales in their backlog, and increasing interest; and 31 of their existing customers have already placed orders for upgrading to the newest version of their product announced recently.
This is an IPO from just a few years ago, priced around $18 per share, that saw bugs in their key product and the share price and analyst following fell off accordingly. They have since said all those bugs have been worked out, and the resumed and now continued and accelerated growth of their customer base since is early proof that this is the case. At least two analysts have called this company's technology 'disruptive' technology with huge ramifications for the industry, and huge upside growth and share price potential. 'Disruptive' technology is so much more than just a basic improvement to what's out there. Yes, they are losing money, but the trend is clearly favorable in both earnings and revenues, and as more analysts get wind of their growing customer base, 'Big Money' will sooner or later take notice, and we'll be off to the races. There will be potential for a buy-out, but I do not want that. I will ride this strong speculative growth story for all it's worth. Look at the share prices of LIFE and ILMN. This little small cap company with early but increasingly proven and in demand 'disruptive' technology could easily see those price levels and more.
I don't know how the market will react tomorrow, given the few analysts following this, but today's price volume action back above the 50dma on strong increased, above average volume added yet more strong technical support to recent levels. Long and strong
Earning numbers doesn't tell the whole story since their expense is high due to R&D. But they doubled the sequencers throughput and they also doubled sequencers sale, customers base is growing, more runs are coming of sequencers, means more revenue in future...
definitely agree, this is a long and strong stock. The science, technology and the patents are the key to the future of the pps, I will add on dips and forget about it for awhile. Great confidence in the future of this company. Very nice commentary.