Trans1 On the Clock!

On Thursday, October 29th, Trans1 (TSON) reported QIII 2009 revenue of $6.9 million which was up 15% from QIII 2008. Reimbursement seems to be a major issue for this organization. Until this is resolved, TSB sees TSON fighting an upstream battle in increasing their revenue as forecasted for the Street. Considering that this organization is doing an exceptional job of minimizing their burn rate, they should have the "legs" to sustain themselves for at least another year. Yet, one has to wonder whether or not they are truly weighing their options in acquiring complimentary products that not only will allow them to generate additional "pull thru" business with the AxiaLIF?

Management must be concerned if they have lowered their revenue guidance for QIV of 2009. TSON finished the quarter with $61 million in cash. So now they are on the clock! The challenge is whether or not they can beat the clock, or, do they make a strategic move to augment their portfolio with an acquisition. With a business model of 66 direct reps and independent distributors, TSB's money is on them acquiring some "me too" products to enhance their revenue. TSB wants to know what do our readers think?