That is the best outcome for this company. With 110M cash remaining, of which 20M is debt, the company can burn 20M per quarter for another 5 quarters. The sequencer sales is projected to be doubling from year 2012, which will be 24 instruments total. That represents 16.8M revenue. The consumable revenue is projected to be 100K per instrument per year. Assume they have 100 instruments sold so far, that is 10M revenue total, a quite generous assumption already. Let's say total revenue for year 2013 is 30M, and the profit margin is 15%. This will add 4.5M profit to their pocket. Yet, the operating cost again has stablized around 20+M per quarter. So the 4.5M will extend their life by another month by most.
I don't see another way out of their financial situation unless they lay off a big chunk of the staff and cut the overhead. Or they can do a secondary offering and dilute the shares more. They already add 4M shares recently by selling on open market.
In my opinion, they should lay off people and they will. Then they can sell the company to save the share holders.
I can't argue the logic. I do own some. This is one of the most fun stocks I've ever traded. It has a sort of predictability to it if you watch it that does help pay the bills. They do have something unique, but expensive for the random user. In the right hands, a different business model can be drafted that allows a network for people to tap into the technology without the need for a $700,000 + down stroke. That does make for interesting speculation because of the billions of potential savings for Pharma and the ability to farm it out for a fee. I'll buy the hype that this is a buyout candidate.