* The Board advises revenue target of $5-$7m for FY07 will not be met.
* Regulatory approval remains outstanding in Russia and Mexico. Due to a request for extended testing, Chinese approval decision will now be pushed back to Q3/Q4 CY07.
* The Board is undertaking a detailed assessment of sales activity and prospects for FY07, including the commissioning of an external review of the Company’s short and medium term strategic options.
Impact
* CEO, Bob Atwill recently told us the FY07 forecast was achievable. This recent announcement takes away all confidence in management.
* This adds doubt to all comments made by management on the demand from Clinicians for the ReCell product.
* The cash flow statements have so far failed to deliver and now question marks hover over demand for all of CCE’s products.
Recommendation Impact (Last Updated: 20070219) At this stage better opportunities appeal in other stocks, Sell
CCE Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
