Caliper Not Without Risks

Caliper Life Sciences, Inc. (CALP - Analyst Report) develops and commercializes life science instruments and related consumables and services for use in drug discovery and development and other life sciences research. Caliper makes specialized LabChips (roughly one-inch in diameter) that miniaturize, integrate, and automate laboratory functions, with the intention of enhancing the capabilities,
and reducing the size of laboratories.

CALP reported Q3 cash EPS that beat our estimate by $0.04 on revenue that was lower than our forecast. We lowered our FY08 revenue and cash EPS estimates and also lowered our FY09 revenue and cash EPS estimates. Management lowered its revenue guidance for 2008.

The company restructured its operations into three strategic business units. This restructuring has resulted in product line divestitures and additional cost savings.

Risk exists in top line and execution. Our target price is based on roughly 0.4x FY09 revenue estimate.

Read the full analyst report on CALP.