Proteon Followers;
I have been following this stock for awhile and feel that they have the
corner in sight. A few things I noticed about the 3rd quarter numbers
that make me feel this way are:
1) There revenues were equal from the second quarter, however, in
the third quarter there was no software licence revenue. This
shows that their hardware revenue is picking up.
2) Their account receivable went from $6.7M to $9.5M. In the
past they have been able to turn over account receivable at
1.5 times a quarter. If sales continue at the growth rate you may
be looking at a 4th quarter revenue of about $14M. If you
run this revenue out based on their current cost of sales and
GS&A the forth quarter will be very close to break even. This
assumes no great increases in sales promotions. (see chart below)
Also look at the inventories... Management must see potential to
stock up so much.
I think this time next year we will be looking at a company making
.15 to .20 cents per share earnings per quarter. Any respectable P/E
on these numbers would put this stock back up to $8-12.
Just my thoughts. Thanks for listening..
Rich
PROTEON, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 28, December 31,
1996 1995
ASSETS
Current assets:
Cash and cash equivalent $21,656 $32,692
Accounts receivable, net 9,743 12,138
Inventories 11,171 4,425
Deposits and other assets 1,597 1,457
Total current assets 44,167 50,712
Property and equipment, net 7,132 8,317
Marketable securities 1,000 ---
Total assets $52,299 $59,029 |
