Found this on AOL. It should answer some of your questions....for the record i bought more at 7 1/2....I think its a steal.:
Subject: Re: drop
Date: Fri, Dec 5, 1997 12:59 EST
From: Wesley0428
Message-id: <19971205175901.MAA01163@ladder01.news.aol.com>
After having done some digging and crunching some figures, here is my $.02.
The Bad News
The net result of yesterday's news is that Misonix still has an "open" order from Lysonix for about $3.7M. I calculated that by adding up all the Lysonix orders to date and subtracting Misonix medical product shipments through Q1 from that number. The question is how much of that 3.7M will ship, when will it ship, will there be a Q4 Lysonix order and for what amount, and what type of shortfall from existing revenue forecasts are we talking about.
That depends on alot of things, including when the new "micro" version of the Lysonix 2000 gets certified and begins shipping (which is an unknown at this point in time). Bottom line is I think that the revenue shortfall from Lysonix vs. my previous best guesses could be as little as $900K and as high as $2.8M for FY'98.
The Good News
We just got $3.8M in new USS business, not one penny of which is in my or Flomenhaft's forecasts. If $3M of that falls into this FY and the Lysonix business resumes in Q4 at some reasonable level, my original estimates basically stand. I believe this is a very possible scenario. In addition, the fact that Misonix got the manufacturing order for the probe is fundamentally very bullish news. USS could have chosen to go elsewhere for this
manufacturing. Furthermore, USS appears to be ramping up their sales plans for this product much faster than anyone expected.
Bottom line:
This stock has just dropped nearly 20% on news that, once digested, will probably result in no material change to estimates for the FY. I'd call that a buying opportunity, but beware of short term tax loss selling.
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