alternatives to srx

Dear srx watchers. May be worthwhile taking a look at bzi - have mentioned them before. They have rolls royce quality ex-GE Healthcare management team and sales are ramping up very nicely in US as the following reports. And while you're at it take a look at cyt.
Don't forget the benefits of diversification folks!

Appendix 4C ASX release made today.



Total cash receipts for the quarter totaled $791k and for the 12 months ending August 31, $1,377k. As you can see sales are beginning to ramp up significantly and we expect this to accelerate markedly in the coming 12 months.



Please note that due to the lag in receipt of cash versus sales and the material growth in quarterly sales figures the actual sales the company achieved for the year should be in excess of $2m.



We forecast total sales to grow to in excess of $8m this financial year with the revenue mix showing monitor sales of approximately $7m and consumables & support passing the $1m mark. The current annualized September month numbers support this forecast.



BrainZ is currently still cash flow negative however burning $3,960k for the 12 months to August 31.



At an operational level the company burnt only $339k for the quarter which is more than manageable considering the company has cash reserves in excess of $10m.



BrainZ continues to ramp up sales & marketing/product support in the US and this is shown in the 52% increase in staff costs versus the previous quarter.



We expect the company to turn cash flow positive in the last quarter of the current financial year and for the company to generate EBIT of $5.2m in FY08.



BrainZ's current enterprise value is approximately $18m which means the stock is trading on a FY08 EBIT multiple of approximately 3.5x.



As the market becomes increasingly comfortable with delivery and sales traction one would expect a re-rating of the share price closer to the $1.00 mark.



BrainZ remains a strong candidate for a trade sale to GE Healthcare within 2 to 3 years should it deliver material sales figures. In assessing the value under this scenario one needs to take into account the full gross margin (see below excerpt from research report)