My question is: Is Hextend on the market yet? Is Abbott marketing it? Has BTIM management given any specific guidance as to when they expect revenues to be generated, or what they expect revenues to be?
Abbott began marketing Hextend in July. Their official rollout was at the ASA meeting earlier this month. There were some sales in the 3rd quarter, but mostly Abbott has been giving Hextend away to introduce it to medical professionals. Abbott has until the end of December to report audited 3rd quarter sales figures to BTX. BTX could report the numbers immediately but doesn't need to until their first quarterly report in 2000.
No one expects big sales figures for this first reporting period. The first telling report will be for this quarter's sales. We won't see these numbers until sometime between next March and next June. Ron Barkin, President has stated that he expects sales of $40 million in 2000.
Thank you for your detailed response. Your information is much appreciated.
Let me make sure I understand you correctly. You are saying that 4Q 1999 should be the breakout quarter, that Abbott has to report 4Q sales to BTX by the end of 1Q 2000 (March 2000), and that BTX has to report the numbers to its shareholders in its 1Q 2000 earnings release. Is all of this correct?
Also, has management given any indication of whether Hextend is selling now? If we are currently in the midst of what is supposed to be the first "telling" quarter, has management or IR given any indication of whether the stuff is actually selling yet?
Sorry to ask so many questions. I have been long the stock (a decent number of shares) for about 2 years and am very thirsty for information. I know that there is good potential upside to BTX, but I am concerned that the worst-case scenario could be quite bad. If the stuff (Hextend) doesn't sell, it doesn't sell, period. The stock would drop to 1 or so if Abbott were to cancel the agreement or give up on marketing the product. Sometimes, even superior products don't sell, for a variety of possible reasons.
Thanks again for your input. If you can answer my questions and comment on my concerns I would greatly appreciate it. I look forward to your response.