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PBIO: Revenue Expected to Continue to Grow

By Grant Zeng, CFA


Update on Third Quarter 2017 Financials 

Total revenue for 3Q17 was $646,061, compared to $535,334 in 3Q16, an increase of $110,727 (21%). This increase was primarily attributable to increases in both instrument and consumable sales. Total revenue included product & services revenue and grant revenue.

Products & Services revenue increased to $603,726 in 3Q17, compared to $500,949 for the prior year same period, an increase of 21%. This revenue included instrument sales and consumable sales. 

Instrument sales increased to $410,906 in 3Q17 from $383,527 in 3Q16, an increase of 7%. 

Consumable sales increased to a record $84,594 in 3Q17 from $32,811 in 3Q16, an increase of 158%. 

Grant revenue in 3Q17 increased to $42,335, from $34,385 in the prior year period, an increase of 23%. 

Operating loss increased to $1.1 million in 3Q17, from $451,807 for the same period in 2016, an increase of $673,465. This increase was due primarily to a significant one-time credit of approximately $400,000 received in 3Q16 from a former professional service provider. 

Adjusted net loss per common share was $0.99, compared to net loss per share of $0.46. 

As of September 30, 2017, PBIO (OTC:PBIO) held $18,723 in cash and cash equivalents. 

We Expect Revenue to Continue to Grow in 4Q2017 and Beyond

In Feb 2017, PBIO announced that the Company has achieved CE Marking for the Barocycler 2320EXTREME, the Company's recently released, next-generation PCT-based sample preparation instrument. PBIO is now permitted to begin sales of the Barocycler 2320EXT in the European Economic Area. 

When the CE Mark is affixed to a product, it signifies the manufacturer's declaration that the product meets all applicable EU safety, health, or environmental requirements. Achieving CE Marking requires substantial cost, time, and effort from the manufacturer, but allows the product to be marketed and move freely throughout all 31 countries in the EEA that require the CE Mark.

The Barocycler 2320EXT is the most recent addition to, and the next generation of, PBIO's Barocycler family. It is a compact, bench top instrument offering many features and benefits not found in PBIO's earlier Barocycler models, such as data logging options, user-level security, computer-operated control with touch screen programming, and the ability to customize multiple pressure cycling parameters. These and other features have already positioned the Barocycler 2320EXT as an instrument of choice for life science key opinion leaders worldwide, when preparing protein samples for analysis. 

Achievement of CE Marking for the Barocycler 2320EXT is an important next step in the company’s commercialization plans for this powerful and enabling sample preparation instrument, especially since CE Marking is required prior to selling the Barocycler 2320EXT to the large and potentially lucrative biopharmaceutical market in Europe. The company recently signed agreements with several strong distribution partners in Europe, the SCIEX co-marketing agreement is entering its second year (SCIEX is a global provider of laboratory instrumentation to the life sciences area, with a large presence in Europe).

In March 2017, PBIO significantly bolstered its marketing and sales capabilities by contracting with well-known and highly regarded EKG Sales Associates, and by hiring two of its planned four additional field sales directors. 

Ms. Rajni Kareer will serve as the Company's Sales Director covering all of the west coast of the U.S. The other Sales Director Mr. Nicholas Cobb will cover upstate New York, northern New England, and all of eastern Canada. He will also have responsibility for field service throughout the U.S. and Canada. Both hires have a strong background in selling capital equipment to research laboratories, including spectrometers and HPLC equipment, as well as laboratory consumables.

The company also has completed the staffing of its new 5-person field sales team and filled Director of Sales North America position. 

In early November 2017, PBIO announced that Professor Tiannan Guo's laboratory at Westlake Institute for Advanced Study (WIAS) has been named the Company's first Center of Excellence in China, which is expected to significantly impact PBI's expansion into China.

With the significantly expanded sales and marketing capabilities, as well as the newly established multi-national co-marketing partner SCIEX, we continue to believe revenue will grow significantly in 4Q2017 and beyond. 

These increases will be driven by sales from both existing and new products (instruments and consumables), from the Company’s expanding distribution network, and from the additional sales and marketing personnel the company has hired.  


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