NEW YORK, NY / ACCESSWIRE / January 25, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued a company note on PositiveID Corporation (OTCQB: PSID).
PositiveID Corporation, (OTCQB: PSID, “PositiveID”), is a life sciences company focused on developing and commercializing innovative products for biological testing, detection, and diagnostics. The company’s flagship product, the Firefly Dx,is a real-time, handheld molecular diagnostic system that utilizes polymerase chain reaction (PCR) chemistry, which is designed to be used in the field for biological threat and infectious disease detection without the use of bulky lab equipment. PositiveID has amassed an impressive list of customers and partners, including the U.S. Department of Homeland Security, NASA, and the U.S. Department of Defense, among others. PositiveID has continued to evolve since our last research update, with the completion of two complementary acquisitions that promise to augment its revenue base while expanding its capabilities to include complementary areas such as mobile labs and next generation thermometers. In our view, the acquisitions should help PositiveID benefit from scale and potentially obtain profitability as it advances development of the Firefly Dx, which is now expected to reach commercial stage during calendar year 2017E.
The report is available here: PSID January 2016 Update Note. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
“2015 was a pivotal year for PositiveID, and in our view, the company scored in several key areas in both its core business as well as strategic moves at year’s end that set up a nice growth trajectory for 2016E and beyond. As of the end of 3Q15, PositiveID had grown revenue threefold over 2014 in just three quarters of results – with full year 2014 revenues of $0.9mn rising to $2.7mn thru 3Q15. PositiveID management, led by Chairman and CEO William J. Caragol, expects the company to demonstrate continued growth into 2016E, with results buoyed by the recent acquisitions of Thermomedics and E-N-G Mobile Systems,” stated Ajay Tandon, CEO of SeeThruEquity. “Based on the results and expectations for the near future, we are setting our price target at $0.20 per share.”
Additional highlights from the update note are as follows:
Acquisitions Add Scale And Expand Offerings
We are intrigued by PositiveID’s acquisition of E-N-G Mobile Systems (ENG) and Thermomedics. The companies appear to be synergistic fits that complement PositiveID’s current offerings, while expanding its presence in commercial medical and adding to its customer base and capabilities. ENG, which specializes in mobile labs, is an established company with a 25-year operating history that brings PositiveID a $4mn, growing base of annual base of revenues with 35% gross margins. Combining PositiveID’s biothreat detection capabilities with ENG’s mobile labs should enable PositiveID to offer a turnkey mobile lab solution that can conduct analysis and full biological testing to result in the field.
Caregiver(R) Opens A Large New Market Opportunity
The acquisition of Thermomedics also appears to be a thoughtful strategic move for PositiveID. Thermomedics markets Caregiver(R), an FDA-cleared, clinical grade, non-contact thermometer that uses infrared technology to measure forehead temperature in adults, children and infants. This represents a large new market opportunity for PositiveID, as the market for medical thermometers is expected to surpass $1Bn by 2020. Infrared thermometers are expected to experience the fastest growth within the thermometer industry – albeit from a small base. PositiveID management sees the growth drivers for infrared thermometers as stemming from concerns over the spread of highly infectious diseases like Ebola. In addition to reducing contamination risk, Caregiver(R) also offers the benefit of being economical for hospitals, as it saves medical facilities the cost of consumables like probe covers and related storage space and disposal costs, which are estimated to cost hospitals between $0.05 and $0.10 per temperature. The addition of Thermomedics has several advantages for PositiveID, including adding a strong management team with manufacturing and FDA expertise, as well as an established distribution channel with customers that PositiveID expects could overlap with Firefly Dx.
$0.20 Price Target For PSID
We are establishing a $0.20 price target for PositiveID, reflecting recent developments and an updated share count. The target represents significant potential for upside from the recent price of $0.02, if realized. PositiveID appears to have had a year of successful execution in 2015, advancing development of the Firefly Dx, growing revenues, and completing two attractive acquisitions. Looking ahead to 2016E, we are encouraged by the company’s guidance for revenues to reach $5mn – $6mn, with an aim of achieving cash flow breakeven during 2017E.
Please review important disclosures on our website at www.seethruequity.com.
About PositiveID Corporation:
PositiveID Corporation is a life sciences company focused on detection and diagnostics, with an extensive patent portfolio. PositiveID specializes in the development of microfluidic systems for the automated preparation of and performance of biological assays. PositiveID is also a leader in the mobile technology vehicle market, with a focus on the laboratory market and homeland security. www.Psidcorp.com
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
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