I thought the services revenue would be more like $1.5 mil plus so I was a bit disappointed. Luke said that the revenues picked up substantially in March with some of the distribution networks starting to kick in after a long period of establishment. Also the time estimated for the distribution networks to start cranking up has taken longer than expected. This I guess is expected when a company is at the very early stages of growth but disappointing in the short term. I am assuming that this current quarter will show a big improvement after the March step up.
On the business side I couldn't be happier. There is so much going on in both new gut testing distribution networks being added all around the world and on the therapeutic side of the business where a big upfront of $50 to $150 mil could drop at any time.
The gut microbiome is gaining an increasingly global importance to health. I am currently reading a book called Brain Energy authored by Dr Palmer a Harvard psychiatrist who explains that medication is largely not required for mental illness and the cure lies in the metabolism.
Apparently Microba has the worlds leading microbe analysis technology and that claim seems to be vindicated by all the distribution partenrships we are establishing with blue chip clients worldwide. Sonic Healthcare seems to think so. Its still early days but the business is headed in the right direction imo.
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I thought the services revenue would be more like $1.5 mil plus...
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