Collexis Well-Positioned with BiomedExperts Success
Collexis Holdings Inc. [[CLXS.OB]] announced that their life sciences research portal, BiomedExperts.com, has surpassed the 145,000 registered users mark and will easily surpass 150,000 by the end of April. While the web site is free to individuals, value-added services are provided for institutional customers. Scientists can use the service to connect with colleagues for future collaboration via their writing in life-science-related journals and other publications.
Collexis is a leading develop of semantic search and knowledge discovery software. The company develops applications ranging from search tools for client web sites to highly sophisticated discovery applications used by many organizations around the world. These applications allow users to identify and search for documents, experts, trends or new discoveries as well as connect with colleagues. These tools have driven growth at Collexis and propelled it into one of the hottest stocks on OTC exchanges.
During the fourth quarter, Collexis Holdings reported total revenues of $1.87 million with service revenues of $770,586. Gross profits more than doubled over the same quarter a year ago, while the company’s largest expense – general and administrative – only moved marginally higher. If the company continues its growth rates and maintains its expense levels, it could see profitability in 2009. The news about BiomedExperts.com’s success only furthers this assertion that things are looking up.
However, despite the positive news, Collexis Holdings still carries a lot of risk for investors. The company incurred a net loss of $11.3 million for the year ended June 30, 2008, current liabilities exceeded current assets by $4.2 million and they reported an accumulated deficit of $24.8 million. These factors led the company’s auditors to issue a “going concern” and “liquidity risk” statement on their latest 10-Q filing with the SEC. As a result, prudent investors may want to wait on the sidelines until profitability.
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