Chromatics Color Sciences International. Inc; CCSI Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI

CCSI 29.77

+3.7%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Quad Sevens who wrote (2971)	6/12/1998 12:10:00 AM
From: jpbrody	Read Replies (1) of 5736

Wade, I'd say you are close with those numbers. It's just about what Hambrecht and Quist has in their report on the bilirubin testing market for SpectRx. They use $2.00/test and 6 million tests per year. Here's the excerpt again from ( spectrx.com page 10) SpectRx receives an average of approximately $2.00 for each disposable. With a potential U.S. market of 6 million tests per year, the disposable product addresses a potential market of $15 million. The measurement instrument should sell to the end-user for around $4,000 and make up the bulk of revenues for at least a few years. Prices to SpectRx should be higher in Europe. In the United States, this product will save significant costs for the home-health providers who see most jaundiced infants, because they will eliminate the multiple visits required by the slower laboratory-based methods used today. Not sure why 6 Million x $2 = $15 million. If CCSI gets 50% of that market, that's $8 million/year. Assuming 100% gross margins, after they pay their other expenses (they lost $6 million last year) they might make $2 million. That would be about $0.15 per share. So even if they did that, right now they are priced at 50 times expected earnings. It seems like an awfully high multiple to give a company without a proven track record. You have to really expect to break to make money elsewhere somehow. I also think they will have a hard time keeping the disposable proprietary. Historically high margin (razor blade type) things bring about a secondary market. It happens with laser printer cartridges, razor blades, and I know it even happens with test reagents used in hospitals.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next