Joe,
I'm hoping the announcement about inventory didn't take you by surprise. The statement was confusing? Is this another way to say, "We have to write off what we couldn't sell because it's going bad." I'm sure you must be trying to find out the facts. We would be very interested in hearing what you found out.
There were some minor earnings estimate adjustments for Q3, about 60 and 30 days ago. I thought this was a sign the analyst were in close touch with management. As you know, the two analysts expected around +$.11/share.
Thanks,
MikeM(From Florida)
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From the press release: "The loss for the quarter is solely attributable to a charge of approximately $4.5 million resulting primarily from an inventory valuation established as a result of two factors. First, the Company has recorded a valuation reserve for the Company's antibody inventory, and second, the Company revised the standard costs of certain products in the US and Europe. The inventory charge is a one-time non-cash event."
James H. Chamberlain, Chairman, President and Chief Executive Officer of BioSource stated, "While the inventory reserve we have recorded has a negative impact on third quarter earnings, it reflects management's change in approach to utilizing such inventory. We firmly believe this approach, coupled with the manufacturing efficiencies we have experienced, will result in a stronger company for the future."
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