Thursday, 3 May 2007

Catalyst Updates Research on Neptune


Catalyst Equity Research has just updated its research on Neptune commenting on the recently released quarterly results.

Mr Robin Cornwell stated that Neptune, "reported record EBITDA and net income for Q3/07
ended Feb. 28, 2007 (excluding stock compensation) of $719,000 or $0.02 per share and $432,000 or $0.01 per share respectively.
Sales were very strong at $2.9 million up 66% Y/Y and exceeded our expectations. EBITDA operating margin increased to 25% or double that reported in Q3/06.
Cash and short term investments increased to $3.1 million up from less than $1 million in May of 2006 as Neptune’s working capital ratio over doubled to 3.9.
Overall, an excellent operating performance and well in line with our forecast."

Mr. Cornwell went on to say that he expected, "new strategic partnerships [to] continue to be a major focus."
In addition, Cornwell stated that he, "[expected] management will be successful in negotiating 3 to 4 significant partnership agreements in the functional food and bio pharmaceutical markets before the end of 2007."

That being said, the 2007 and 2008 EBITDA per-share forecasts of $0.10 and $0.38 were reinforced.
To view the full report click here.