By Brian Marckx, CFA
Corgenix Medical (OTC BB:CONX) announced on 7/3/12 that fiscal Q4 (ending 6/30/12) revenue is expected to be approximately $2.3MM, or about $170k (8%) higher than previously anticipated. $2.3MM in Q4 will push fiscal 2012 revenue to almost $9.3MM, up 17% from 2011. While not specifically stated in the press release, the implication is that the upward revenue revision may relate to stronger than expected contract manufacturing revenue in Q4. Contract manufacturing has been the single biggest catalyst of CONX's revenue growth through the first nine months of fiscal 2012 (compared to the same period in 2011), contributing more than one-half of the 25% growth over that period.
Specifically related to CONX's contract manufacturing business, in June the company announced a five year manufacturing and supply agreement with diaDexus. Under the deal, Corgenix will manufacture and supply the PLAC test, a cardiovascular assay that measures LP-PLA2, a marker which recently got an endorsement from the American Association of Clinical Endocrinologists when they added it to their recommended list of tests for heart disease.
Prior to the revised revenue guidance we were modeling Q4 and FY2012 revenue of $2.16MM and $9.12MM, we've now moved our numbers to $2.33MM and $9.29MM. Our Q4 and FY2012 EPS estimates remain unchanged (-$0.00, -$0.01). We have also made no material adjustments to the remainder of our model.
We are maintaining our Outperform rating and $0.50 price target on CONX.
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