Cogstate (CGS: $2.50) has achieved sales of US$25.4 million for the March quarter. Its sales refers to new contracts signed in clinical trials for the assessment of cognitive and functional changes.
For the financial year it brings the total to US$67 million in new contracts signed. These contracts will be recognized over the next few years, with around 20% recorded as an upfront fee. As a comparison, the company signed US$68 million in new contracts over the previous two years.
The contracted revenue already locked in for this financial year is US$56 million. Bioshares previous estimate for revenue for the year was US$59 million. It looks like revenue of around US$60 million for the year will be likely.
The company has indicated that over the last year it had been experiencing a record level of quotes, some of this uplift attributable to its channel partners. Good predictability and vision ahead is a hallmark of this business, particularly with long term revenue secured. For FY2027, the company already has locked in US$35.6 million from current contracts.
Cogstate is capitalized at $428 million with US$34 million in cash at the end of last year.
Bioshares recommendation: Accumulate
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