NEW YORK, NY / ACCESSWIRE / September 6, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on PositiveID Corporation (OTCQB: PSID).
The report is available here: PSID September 2016 Update Note.
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 a proprietary polymerase chain reaction (PCR) automated pathogen detection system, which can be used in the field for biological threat and infectious disease detection without the use of bulky lab equipment. Founded in 2001, PositiveID has amassed an impressive list of customers and partners, including The Department of Homeland Security, NASA, and the US Department of Defense, among others. With a product portfolio bolstered by the December 2015 acquisitions of ENG Mobile Systems (ENG) and Thermomedics, PositiveID has made the transition to a multi-million dollar revenue-generating company and appears to be off to a strong start to FY2016.
PositiveID provided several important investor updates recently, with highlights as follows:
- Phase II contract under SenseNet: The company recently announced it was awarded a Phase II contract under the SenseNet Program from the U.S. Department of the Interior on behalf of the U.S. Department of Homeland Security Science & Technology Directorate, in conjunction with PSID’s partner, ENSCO. The goal of the SenseNet Program is to implement faster, less expensive bio-threat detection systems to increase the effectiveness of current systems and provide an added level of security.
- Strong 2Q16 Results: Revenues rose to $1.8mn, up sequentially and also well ahead of 2Q15 revenues of $51,000, with growth primarily attributable to the mobile labs business at recently acquired ENG
- Revenue in 1H16 came in at $3.5mn, on pace to beat guidance of $5mn-$6mn. We are raising our 2016E revenue estimate to $6.5mn
- PSID management issued a strong outlook, indicating that it had a building pipeline for its Mobile Labs unit and the newly acquired Caregiver® thermometer.
1H16 revenues look ahead of our thinking
PositiveID reported strong top line results in 2Q16 of $1.8mn, largely comprised of Mobile Labs revenues. For the first half of the year revenues came in at $3.5mn, tracking ahead of our estimates and the company’s guidance of $5mn-$6mn. The catalyst for the revenue performance has primarily been the acquisition of ENG Mobile Systems, which is now consolidated into PSID results in the Mobile Labs segment.
Importantly, management provided positive commentary about PSID’s pipeline in its results press release. CEO William Caragol stated that both ENG and Caregiver® have “strong and improving pipelines and backlog.” A potential catalyst could be the Caregiver® infrared thermometer, which Caragol stated had several opportunities that “could yield significant growth” in 2H16 and the future. PSID has had operational control of Caregiver® but recently completed the capital portion of this acquisition, finalizing the transaction. The development of Firefly also continues to advance. Management updated the timing of field units to early 2017E, with possible FDA submission in 2017E.
Updating target to $0.35
We are updating our target for PSID to reflect recent results and a new share count following financing and a reverse split completed by the company. The target suggests a fully diluted (as if converted) market cap of $26.1mn, which is 3.5x annualized 2Q16 revenues. We view this as fair considering the strategic value of PSID’s Firefly IP and growth potential from its Mobile Labs and Caregiver®.
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About PositiveID Corporation
PositiveID Corporation is a life sciences tools and diagnostics company with an extensive patent portfolio. PositiveID develops biological detection and diagnostics systems, specializing 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. Psidcorp.com.
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