Slide 21 of the presentation shows a graph of the sales and marketing headcount as we go from 2007 to 2010. It is interesting to compare this with the chart on slide 26 which shows the Sales and Marketing expenses as a percentage of revenues for 2007 and 2012.
The expenses are only going to increase from 16% to 18% of revenue from slide 26.
The total headcount related to sales and marketing is going to increase from 50 to 275.
If the expenses as a percentage of revenue goes up only a percent or two and the headcount is going up five fold then that tells me that the projected revenues are also going up almost 5 fold.
At the same time the gross product margins are going to move from 43% to 60 -68% as shown on slide 24.
I looked at the presentation this morning and it makes me hope that there is no buy-out and that they go it alone. I think there are people who think that the price has gone up a lot this year and that they've missed the boat. Looking at that presentation makes me realize that we're still in the first or second inning of this game. You could harly complain if there was a buy-out next week for $60/share but you could also look at that presentation with the increase in margins and sales projected for the next few years and make a strong case for this stock price to be much higher than $60/share. I know that nothings for certain, but as it stands now I will be looking to add on any weakness this year, especially if it's market driven as opposed to company specific.
Thanks for helping to clarify this issue on the SmartCycler. CB, you are very important asset on this message board.
I'm just trying to find the "inside baseball" story.
You have to admit, it's an interesting dynamic. Cepheid's GeneXpert is competing against tests run on it's earlier platform. I'm just looking to see if there are maneuvers Cepheid can employ to accelerate and exploit their advantages.