By Brian Marckx, CFA
This morning (7/9/12) BioLife Solutions Inc. (OTC BB:BLFS) pre-announced that Q2 revenue is expected to come in at $1.09 million, representing y-o-y and sequential growth of 76% and 31%, respectively. This is an all-time record for quarterly revenue and will also be the eighth consecutive quarter of sequential revenue growth. The pre-announcement does not break out revenue by business line (i.e. - biopreservation media vs. contract manufacturing) but we think it's safe to assume that sales to the new contract manufacturing customer were a significant contributor.
We had modeled revenue of $850k in Q2, with the assumption that sales to the new contract manufacturing customer commence in Q2 but provide a larger contribution in the second half of the year. Management has not provided quarterly financial guidance so our weighting of our modeled $1.2 million (management's guidance is $1 million - $2 million in 2012) in contract manufacturing revenue mostly in the back half of 2012 was a best-guess at the time. While it's very possible that contract manufacturing revenue in 2012 will beat our $1.2 million forecast (and 2012 total revenue will beat our $3.8 million forecast), we think it's too early to assume that that will be the case based solely on the beat in Q2. As such, we continue to model $3.8 million of revenue in 2012 but now with 1H and 2H revenue similar at approximately $1.9 million each. We will again update our model following the release of the full financials/10-Q.
We have made no other material changes to our model and are maintaining our Outperform rating and $0.25 price target.
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