Q: TOS: you were pretty negative about TOS yesterday. Today Canaccord was positive about the company - not hard as it moved up 35%. Does the latest company report change your mind?
TSO3* (TOS : TSX : $0.97), Net Change: 0.25, % Change: 34.72%, Volume: 509,859
It’s the Final Countdown! TSO3 reported second-quarter results, with revenues growing to $132,179, as compared to $37,255
in the second quarter in 2013. EPS for the quarter came in at a loss of $0.02, in line with consensus estimates. The innovator in
low temperature sterilization technology for medical devices, said the higher sales in 2014 reflect a higher utilization by the
users of the installed base of sterilizers leading to increased sales of consumables, as well as an increase in maintenance and
compatibility testing services. Canaccord Genuity Sustainability Analyst Sara Elford notes that the results were in line with her
estimates and the core tenets of her investment thesis remain as follows: (1) technology platform is game-changing and
applicable across multiple products and end-markets; (2) business model is excellent (very healthy, high-margin recurring
revenue from captive consumable sales based on the in-use installed base); (3) cash balance is sufficient to fund current burn
rate past Q3/15; (4) her confidence in U.S. clearance in 2014 remains very high (5) in her view TSO3 should be an acquisition
target in due course following a successful FDA outcome. In mid-July, TSO3 received an Additional Information Request from
the Agency with respect to its May 2, 2014 submission. Management is very pleased with the bilateral communications so far
and expects to have everything back into the FDA in its final form within a month or two. Elford believes that U.S. clearance
could be a 2014 event, representing an important catalyst for the company.
TSO3* (TOS : TSX : $0.97), Net Change: 0.25, % Change: 34.72%, Volume: 509,859
It’s the Final Countdown! TSO3 reported second-quarter results, with revenues growing to $132,179, as compared to $37,255
in the second quarter in 2013. EPS for the quarter came in at a loss of $0.02, in line with consensus estimates. The innovator in
low temperature sterilization technology for medical devices, said the higher sales in 2014 reflect a higher utilization by the
users of the installed base of sterilizers leading to increased sales of consumables, as well as an increase in maintenance and
compatibility testing services. Canaccord Genuity Sustainability Analyst Sara Elford notes that the results were in line with her
estimates and the core tenets of her investment thesis remain as follows: (1) technology platform is game-changing and
applicable across multiple products and end-markets; (2) business model is excellent (very healthy, high-margin recurring
revenue from captive consumable sales based on the in-use installed base); (3) cash balance is sufficient to fund current burn
rate past Q3/15; (4) her confidence in U.S. clearance in 2014 remains very high (5) in her view TSO3 should be an acquisition
target in due course following a successful FDA outcome. In mid-July, TSO3 received an Additional Information Request from
the Agency with respect to its May 2, 2014 submission. Management is very pleased with the bilateral communications so far
and expects to have everything back into the FDA in its final form within a month or two. Elford believes that U.S. clearance
could be a 2014 event, representing an important catalyst for the company.
