Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Bob Trocchi who wrote (5643)	11/16/1999 5:43:00 PM
From: vampire	Respond to of 5736

Bob, I certainly agree with you that we need at least another quarter to better assess the run rate. This report is meaningless other than the fact that it shows CCSI has put out their shingle and is open for business. They are no longer a developement-stage company. Inventory was certainly up due to the production of machines (and lensettes) that were not shipped until the fourth quarter (see press release from a week ago) - this pr announcement will also show you that units are not only being placed but in fact are REPLACING the heel stick as the method of detection and monitorization of jaundice in infants at some the hospitals that were doing parallel testing. Harris

To: Bob Trocchi who wrote (5643)	11/16/1999 6:08:00 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 5736

When they announced "mass manufacturing" a few months, the release specifically noted that they had found a contract manufacturer which was not named. Message 10105491 In a contract manufacturing situation, I would not expect WIP or raw materials to be carried on CCSI's books. The whole point is to outsource the process and cost of dealing with all those issues. What this tells me is that CCSI has a bunch of FG inventory on their books. There could be a lot of reasons NOT to ship it immediately, none of them really good: 1) Orders have been cut back (really bad, impacts top line) 2) They manufactured more than was ordered (reveals poor control and planning) 3) They manufactured it too soon (ditto) 4) Economy of scale in manufacturing dictates the need to make a lot all at once, then sell it slowly from inventory. (Reveals the need for ongoing capital to support inventory.) Realistically, a bit of 2 & 3 is not entirely out of order for a startup manufacturing organization. However, this seems to be more than "a bit" and the details of their initial contract seemed fairly explicit in terms of the numbers that would be delivered. As always, my primary concern here is their unwillingness to discuss and explain the details of their financial statements, their expected margins and their sales/returns policy. None of this necessarily indicates that they are hiding something, but it certainly seems that they don't want to talk about it. No current position. mg